The accounting system monitors the economic development of agricultural and horticultural entrepreneurs in Finland, based on annually collected accounting data. In addition to calculating the results and posting them via the Economydoctor online services, Luke is in charge of the related activities and information systems.
The significance of horticultural production is increasing. In the years to come, the goal is to double the number of the holdings included in the profitability accounting records for horticulture. Profitability accounting data includes the revenue and expenditure of horticultural companies, cultivation data, production volumes, storage, information on assets and total working hours.
This data is controlled for quality assurance purposes. The results of each holding are used, with weightings applied, to calculate the official profitability and cost-effectiveness results and forecasts for the 40,000 largest agricultural and horticultural holdings in Finland. Forecasts are calculated for each holding and take account of changes in input and output prices, average crops and subsidies paid.
Luke uses the profitability accounting system to fulfil Finland’s statutory obligation to provide data representing agricultural business activities for the EU’s FADN data system. The EU maintains the FADN (Farm Accountancy Data Network) system on agricultural accountancy data. Taking part in profitability accounting activities is completely free of charge for holdings. The online Economydoctor service offers a broad array of reports and forecasts for horticultural production.
Horticultural entrepreneurs use data collected on the profitability of horticultural production. Holdings that are part of the profitability accounting system can use the financial reports they receive. They can also make use of the reports available on Luke’s Economydoctor service for the financial monitoring and planning of their own farm.
The results are used, primarily via the Taloustohtori service, for advisory, teaching and lobbying purposes and by entrepreneurs. Furthermore, profitability data is used for research purposes when examining the question of the profitability of horticulture. Luke uses such data to produce a range of forecasts and simulations for use by the agricultural administration. The administration then continues to use them in developing the subsidy system and in its many EU negotiation processes. EU uses the profitability data of the FADN database when outlining the agricultural policy and monitoring its effects.
Photo on top of the page: Yrjö Tuunanen