Part II: Accounting terms
Only some of the items making up output and input are shown separately in the Tables, but each is defined to indicate the composition of the totals.
Crop Output
Sales, including produce to farmhouse and labour, adjusted for debtors at the beginning and end of year and for valuation change. The value of non-fodder crops used on the farm for feed or seed is included. Payments under the Arable Area Payment Scheme and set-aside payments are also included.
Cereals
Wheat, barley, oats and mixed corn.
Livestock Output
Sales, including produce to farmhouse and labour, adjusted for debtors at the beginning and the end of year and for valuation change, plus Beef Special Premium, Suckler Cow Premium and Sheep Annual Premium, less purchases of livestock and livestock products for resale. The value of milk from the dairy herd fed to stock is included. Breeding Livestock Stock Appreciation is excluded.
Miscellaneous Output
Miscellaneous produce to farmhouse and labour, revenue from contracting and some other miscellaneous items, but excluding grants and subsidies, adjusted for valuation change.
Other Grants and Subsidies
All grants except those paid in respect of permanent improvements, those deducted from expenditure, and those included in Livestock and Crop Outputs.
Total Output
Crop Output, Livestock Output, Miscellaneous Output and other Grants and Subsidies.
Inputs
Payments and non-cash inputs (eg unpaid labour, rental value) adjusted for creditors at the beginning and end of the year and for valuation change.
Feeds
Expenditure on feeds adjusted for valuation change. The value is included of (a) milk from the dairy herd fed to stock, and (b) home-grown non-fodder crops fed to stock.
Seeds
Expenditure on seeds adjusted for valuation change. The value of home-grown seed grain and potatoes is included.
Labour
Wages and employer's National Insurance contributions, payments in kind, value of unpaid family labour (excluding that of the farmer and spouse) and salaried management are all included.
Fertilisers
Expenditure on lime and fertilisers, adjusted for valuation change.
Machinery (excluding Depreciation)
Expenditure on machinery repairs, small tools, contract work and fuel and oil, less allowances for private use.
Miscellaneous
Electricity, vehicle taxes, insurance and secretarial costs, adjusted for valuation change.
Other Livestock Expenses
Veterinary charges, haulage and sundry expenses.
Other Crop Expenses
Crop protection, sundry crop expenses and water for irrigation.
Land and Building Costs
Rent paid by tenants, rental value of owner-occupied farms, imputed rent on tenant's improvements. Rates paid on cottages and the business share of the farmhouse. Repairs by occupiers.
Depreciation
This is calculated on a replacement cost basis.
Net Farm Income
Net Farm Income ( NFI) represents the return to the farmer and spouse for their manual and managerial labour and on the tenant-type capital in the farm business. It is intended as a consistent measure of the profitability of tenant-type farming. NFI is not a proxy either for farm business income or for farm household income.
- To represent the return to the farmer and spouse alone, a notional deduction is made for any unpaid labour provided by non-principal partners and directors, their spouses and by others; this unpaid labour is valued at average local market rates for manual agricultural work.
- To confine the measure to the tenant type activities and assets of the business, an imputed rent is deducted for owner occupied land and buildings and for landlord-type improvements made by the tenant; no deduction is made for interest payments on any farm loans, overdrafts of mortgages and any interest earned on financial assets is also excluded.
Breeding Livestock Stock Appreciation
The part of the change in the value of breeding livestock that is due to changes in price. It is calculated for adult female cattle, sheep and pigs.
Tenant's Capital
Investment in tenant-type assets on a medium - short-term basis. The first comprises machinery (replacement cost basis) and breeding livestock, and is valued at the average of opening and closing valuations. The second comprises trading livestock, crops and other items similarly valued. As investment varies between opening and closing valuations, an average annual investment has been estimated.