Determination of the relationship between outputs and inputs in agriculture in the EU member states

The EU member states have established FADN (The Farm Accountancy Data Network) system to collect and process accounting data from agricultural holdings. The system is based on precisely defined methodology that is unique for all member states. At EU level, the data are integrated from all member countries, and bring common agricultural policy measures aimed at improving operations and improving financial results achieved in farms. This system operates on the representative sample of about 80.000 agricultural farms from the EU, which represent about 5 million of commercial farms. In this paper we present relationship of outputs and inputs in the agricultural sector of the EU Member States. On the basis of FADN data, there is a possibility of long-term planning of investment in agricultural production, the level of subsidization of agricultural production and adjusting the type and volume of production to market demand