The paper adresses an approach on indicators from the public database FADN (Farm Accountancy Data Network), at farm level selected from Romania. The study focused on analyzing the data series in 2012 (the latest year reported in the FADN) and the second part of the study was supported by the report on the last six years (2007-2012) and four of the eight regions. The data comes from public database FADN and the methodology consisted of a descriptive analysis of the data and presenting them as graphic and tabular form. The results recorded consisted of highlighting the differences between regions and survey findings have highlighted a decrease in interest and rental costs and also in investment levels, compared to 2012; in the same conditions, the total production and cash flow increased

Micu, Marius Mihai

Mituko Vlad, Ionela

Stoian, Elena

Tudor, Valentina

Munich RePEc Personal Archive

Munich Personal RePEc ArchiveFarms regional economic developmentsidentified in the FADN PANELMituko Vlad, Ionela and Tudor, Valentina and Stoian, Elenaand Micu, Marius MihaiThe University of Agronomic Sciences and Veterinary Medicine inBucharest, The University of Agronomic Sciences and VeterinaryMedicine in Bucharest, The University of Agronomic Sciences andVeterinary Medicine in Bucharest, The University of AgronomicSciences and Veterinary Medicine in Bucharest20 November 2015Online at https://mpra.ub.uni-muenchen.de/69345/MPRA Paper No. 69345, posted 08 Feb 2016 14:46 UTCFARMS REGIONAL ECONOMIC DEVELOPMENTS IDENTIFIED IN THE FADN PANEL   IONELA MITUKO VLAD1, VALENTINA TUDOR2, ELENA STOIAN3, MARIUS MIHAI MICU4   Abstract: The paper adresses an approach on indicators from the public database FADN (Farm Accountancy Data Network), at farm level selected from Romania. The study focused on analyzing the data series in 2012 (the latest year reported in the FADN) and the second part of the study was supported by the report on the last six years (2007-2012) and four of the eight regions. The data comes from public database FADN and the methodology consisted of a descriptive analysis of the data and presenting them as graphic and tabular form. The results recorded consisted of highlighting the differences between regions and survey findings have highlighted a decrease in interest and rental costs and also in investment levels, compared to 2012; in the same conditions, the total production and cash flow increased.  Keywords: farms, Romania, FADN, regional, productions, indicators.  INTRODUCTION  Romanian agriculture is one of the most important sectors, both in areas for cultivation and by the diversity of crops and direction of production. However, agriculture has had to face many challenges, particularly in the last 20-25 years, and its assertion as the basic sector in the economy was influenced by measures related to European harmonization. In these circumstances, the need for a study based on actual data collected from a representative sample of farms in all regions and to bring results related to agricultural economic indicators, found their place in research field. FADN was introduced as the data collection system 50 years ago, in 1965. Currently it uses data from about 5,000,000 farms in the 27 European member countries, representing more than 90% of total EU agricultural production. This is designed to collect accountancy data on agricultural holdings in order to determine the revenue and analyse the agricultural business. An existing database query could get to the link http://ec.europa.eu/agriculture/rica/database. FADN was helpful from the start in configuring and adapting the common agricultural policy, in a real database. In Romania, the establishment of the Farm Accountancy Data Network was done by O.G. 67/2004, approved by law no. 465/2004. Liaison Agency for Romania is the RICA department from the Ministry of Agriculture and Rural Development. This agency carries out an annual survey and then, the questionnaires are transmitted to European Commission for validation and payment. Research based on FADN information are essential trace from the reform process and evaluation of CAP measures, but also in achieving long-term agricultural policies. (www.madr.ro). For the accounting year 2012 were collected accounting information from 6,000 farms, from which were validated by the European Commission (EC), a number of 5717 farms. Data confidentiality is an important issue for the farmer who provides the data; this is ensured by Article 16 of Regulation 1217/2009 EEC, consolidated version of Regulation No. 79/65 / EEC. FADN database provides the data as standard results that can be consulted through a series of reports, organized in datasets. The European Commission has defined each variable in standard results in order to ensure a correspondence between the definitions of its own variables and those of other institutions producing agricultural statistics The results calculated for each year is average and are given in € (EUR / ECU), which will allow data to be aggregated in any country and compared. Research based on the same database were also made by other authors. In this respect, we mention Kusz, Gedek, Ruda and Zajac (2014), authors who were interested especially regarding data on farm investments. Also based on data                                                           1 Lecturer PhD Ionela Mituko VLAD, U.A.S.V.M. Bucharest, bmitsouko@yahoo.fr 2 Professor PhD Valentina TUDOR, U.A.S.V.M. Bucharest, valentina_tudor@yahoo.com 3 Professor PhD Elena STOIAN, U.A.S.V.M. Bucharest, stoian_ie@yahoo.com 4 Lecturer PhD Marius Mihai MICU, U.A.S.V.M. Bucharest, micumariusmihai@yahoo.com provided by FADN, researchers Skarżyńska, Grzymek and Abramczuk, (2014) analyzed data on the global economic situation of Eastern European countries. Likewise, the authors Veveris, Krievina and Leimane (2007) underlined the positive and negative aspects of agriculture in Latvia, cost structure issues through the analysis of economic information farms, using FADN data. Farm efficiency issues, using FADN data, were elaborated by Toma (2010) who considered that "FADN is an instrument based on annual survey of incomes and results evaluation ...". Approaching the same source of information, Simtion (2014), focused on analyzing the data standardization in agriculture. On his turn, Dona (2013), made an analysis on the evolution of specialized horticultural or mixed farms, also based on information obtained from FADN. In the same respect and based on the same source of information, details on some productions have been presented by Kuta and Golab (2014) focusing on the production costs and the profitability of different varieties of potatoes. Finally, we mention the study of Chavas (2011) who appreciate the fact that it will need more studies to increase the understanding on the environment and how it has to be transformed "into supporting and feeding the human race, including estimating the economic value of multifunctionality in agriculture …”.   MATERIAL AND METHODS  As we mentioned, the data used in the study were collected by FADN in the Romania’ sample in 2012 and data from the regional level during the 2007-2012 period. For the analysis at the regional level, we chose from the 8 regions, only 4- North-East, West, North West and Centre. The other 4 regions (South East, South Muntenia, South-West Oltenia and Bucharest-Ilfov), will not be addressed in this study, and it will be the subject of subsequent works. Groups of variables chosen for this regional analysis were as follows. Structure variables (labor paid and utilized agricultural area), then, variables ranging from production (output crop production, output livestock production and  farmhouse consumption); category of chosen data from costs and taxes were related to rent and interest paid and taxes; balance indicators focused on the following variables: buildings, machinery and short-term loans, medium and long term loans. The last category of indicators (financial indicators), referred to the investment and cash flow. The data used in this study and their description comes from public database FADN (EUFADN Database, Eurostat), accessed in April-May 2015). The methodology consisted of descriptive data analysis and comparative analysis results are presented in tabular and graphical form.  RESULTS AND DISCUSSIONS  In this part of the paper, we present the categories of indicators, the results of comparative analysis between the 8 regions (North East, South East, South Muntenia, South West Oltenia, West, North West, Centre, Bucharest-Ilfov) in the year 2012. In this regard, Fig. 1 illustrates paid labor and the utilized agricultural area on the 8 regions. Thus, we can see a proportional evolution of the two indicators. The following figure (Fig.2) captures comparative graphical form, the crop and animal production and farmhouse consumption in all 8 regions in 2012. We identified an important level of crop production in the South East, West and Bucharest Ilfov, a level of animal production in the South East, West and Central. Farmhouse consumption is a relatively important in all regions. Fig. 1: Production structure, 2012                                          Fig. 2: Crop and livestock production, 2012 Source: EUFADN Database Eurostat, Extracted 04/05/15    Source: EUFADN Database Eurostat, Extracted 04/05/15   The charts that follow refer to two categories of costs and revenue indicators both for 2012. The categories of costs considered are interest and rent paid. We note in this regard that the greatest interest paid is registered in Bucharest-Ilfov region, and the lowest is recorded in region North East. Regarding the rent paid, the areas with the highest levels are in order South East, South Muntenia and West, and the lowest rent paid was recorded in the South-West Oltenia.   Fig. 3: Costs categories, 2012                                                    Fig. 4: Net income/farm, 2012 Source: EUFADN Database Eurostat, Extracted 04/05/15        Source: EUFADN Database Eurostat, Extracted 04/05/15  The indicator Net income / farm is represented in Fig. 4 as a percentage of the total per year. We will noted so that the highest income is recorded in the West region (21%), followed by the South East (17%) and the lowest rent is recorded in the North East (8%).                       Fig. 5: Indicators Balance, 2012, Source: EUFADN Database Eurostat, Extracted 04/05/15 A representation of the indicators "buildings" and "machinery" is made in Fig. 5. We can see that the North East region has the lowest level in machinery and in the Southeast it wa found the lowest buildings level. Bucharest Ilfov region has recorded the highest level for the two categories and this may be the raison for the highest level volume level of interest paid in the region. Next, we present in tabular form the six years dynamics of the previous indicators, only four development regions (Northeast, West, North West and Centre), during the 2007-2012 period. Thus, Table 1 presents the evolution in the groups of indicators on the structure and outputs. Table no. 1: Structure and productions. Data is expressed in procentage (%) baded on the year 2012, 2012=100% Year Region Paid labour Input Utilised Agricultural Area Output - crop production Output - livestock products Farmhouse consumption 2011 NE 114,6 102,9 109,3 117,2 115,8 W 104,7 97,6 98,2 106,4 108,3 NW 137,5 109,3 103,1 111,5 98,4 Centre 128,3 95,7 99,7 110,4 95,1 2010 NE 105,8 107,1 113,1 121,5 114,2 W 109,1 102,2 95,6 94,6 104,4 NW 171,4 107,1 101,3 117,9 97,2 Centre 127,2 92,5 92,1 107,5 138,2 2009 NE 162,6 100,3 89,9 78,4 158,5 W 114,4 79,6 54,7 82,0 232,9 NW 179,5 95,0 98,7 82,0 133,1 Centre 196,6 108,4 94,0 100,1 212,9 2008 NE 153,5 75,5 94,2 59,3 171,7 W 205,5 67,5 44,9 68,0 158,8 NW 241,0 86,9 95,4 83,6 66,8 Centre 283,2 87,4 102,5 122,6 189,9 2007 NE 268,3 70,5 69,9 69,2 170,5 W 194,6 62,6 52,1 76,0 198,9 NW 417,5 79,0 83,5 203,2 79,3 Centre 524,2 88,0 81,9 322,9 185,9 Source: EUFADN Database Eurostat, 2015 From the table we can see that in terms of paid labor, this is an increase compared to 2012. The next three indicators (area used, crop and animal production), have recorded a constant growth, and we can even say that these indicators have had, with some exceptions, lower values in the years prior to 2012. The last indicator in Table 1, farmhouse consumption had a positive dynamics in the years prior to 2012, except the North West region where consumption was lower from the reference years before 2012, the other areas were with higher percentages of 100%. The following table presents the dynamics of costs and loans, compared to 2012. We can say that rent paid until 2012 were lower than in 2007-2011 in all regions, except the North East, in 2010 and 2011. Interest payments are higher than the reference year, indicating possibly a relaxation of or a decrease in credit interest. Medium and long-term loans had a lower dynamic forom the reference year, except in the North East and North West areas. Short-term loans were higher by 150% in 2007-2011, compared to reference year 2012. Table no. 2: Costs and balance indicators. Data is expressed in procentage (%) baded on the year 2012, 2012=100% Year Region Rent paid Interest paid Long & medium-term loans Short-term loans 2011 NE 101,0 204,2 145,9 251,4 W 70,8 148,6 81,4 280,8 NW 78,5 160,0 181,3 23,5 Centre 76,8 157,9 50,7 187,6 2010 NE 106,1 245,8 206,1 323,9 W 82,7 91,9 74,0 120,5 NW 71,3 196,0 208,6 86,8 Centre 83,2 133,3 44,1 166,8 2009 NE 76,1 137,5 65,7 165,1 W 49,9 144,6 74,1 368,6 NW 58,8 236,0 261,0 373,5 Centre 70,7 396,5 126,9 278,3 2008 NE 33,1 183,3 171,3 185,3 W 43,4 154,1 104,4 464,7 NW 39,8 252,0 56,1 154,4 Centre 70,4 386,0 149,8 337,8 2007 NE 36,2 191,7 106,1 181,7 W 54,0 106,8 193,5 123,7 NW 54,3 1380,0 524,1 1441,2 Centre 70,1 1414,0 763,4 1167,3 Source: EUFADN Database Eurostat, 2015 In the Table. 3, are presented in dynamics flows the financial indicators compared to 2012 and this indicates a significant fluctuation for gross investments and Cash Flow indicator is 2007-2011 to a lower level of the 2012 year. This could lead us to the idea that in 2012 it was made more investments, combine with a cash flow that also had a larger volume compared to the previous period. Table no. 3: Financial indicators. Data is expressed in procentage (%) baded on the year 2012, 2012=100%  Source: EUFADN Database Eurostat, 2015    Year Region Gross Investment Cash Flow 2011 NE -175,0 110,1 W 214,0 84,3 NW -178,9 92,0 Centre 92,0 91,1 2010 NE 150,8 87,0 W 89,3 76,5 NW 163,9 89,9 Centre 47,8 76,2 2009 NE 57,8 65,4 W 196,6 35,7 NW 187,9 80,2 Centre 142,7 52,4 2008 NE 66,4 56,2 W 238,8 29,5 NW 25,5 86,6 Centre 108,0 72,6 2007 NE 92,2 39,5 W 87,4 32,5 NW 77,6 86,6 Centre 422,6 62,7 CONCLUSIONS As findings of this study will include the following. In 2012, analyzed for all eight regions, workforce and total area were noted related data and production volume was proportionally. Comparative cost analysis showed us a huge amount of interest paid Bucharest-Ilfov region, where we find also the highest volume of machinry and buildings, meanwhile, in North East region this index is the lowest. At the same time, rent payments may reach from 244 euros (South West Oltenia) to 1048 (South East). Net income / farm appears to be correlated closely with those costs. We are talking about a maximum of 21% of the total in 2012 to the West, while the minimum (8%) is reached in the North East and South Muntenia. Compared with 2012, the analyzed indicators in 2007-2011, in four selected regions, recording a decrease overall costs, an increased in production level, but at the same time, investments are affected and the cash flow indicator increased.  BIBLIOGRAPHY  1. Chavas, J. P., 2011. Agricultural Policy in an uncertain world. European Review of Agricultural Economics, Vol. 38(3): 383 – 407, doi:10.1093/erae/jbr023. 2. Dona I., 2013. General Aspects Regarding the Evolution of Romanian Specialized Farms Based on FADN Data, Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development Vol. 13, Issue 3, 2013 PRINT ISSN 2284-7995, E-ISSN 2285-3952.  3. Kusz D., Gedek S., Ruda M., Zajac S., 2014. Determinants of Investments in Farms, Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development Vol. 14, Issue 3, 2014 PRINT ISSN 2284-7995, E-ISSN 2285-3952. 4. Kuta Ł., Gołąb I., 2014. Production Costs and Profitability of Three Potato Varieties: Lord, Vineta and Jelly In Years 2011-2012, Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development Vol. 14, Issue 3, 2014 PRINT ISSN 2284-7995.  5. Simtion D., 2014.  Agrarian Accountancy in the Visual Cone of International Accounting Standards, Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development Vol. 14, Issue 1, 2014 PRINT ISSN 2284-7995, E-ISSN 2285-3952. 6. Skarżyńska A., Augustyńska-Grzymek I., Abramczuk Ł., 2014. The Use of Capital and Condition of Economically Weak Farms in the Selected Central and Eastern European Countries, Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development Vol. 14, Issue 2, 2014 PRINT ISSN 2284-7995, E-ISSN 2285-3952.  7. Toma E., 2010. Farm efficiency analysis in Romania using FADN methodology, Scientific Papers “Management, Economic Engineering in Agriculture and Rural Development“, 10(3)/2010:333-336. 8. Veveris A., Krievina A. and Leimane I., 2007. Efficiency analysis of agricultural sector in Latvia compared to other EU countries, based on FADN data, Proceedings of the International Scientific Conference “Economic Science for Rural Development”, No.13, 2007, Latvian Academy of Agriculture and Forestry Sciences, Jelgava, p. 13-19. 9. Farm Accountancy Data Network, http://ec.europa.eu/agriculture/ricaprod/database/database_en.cfm (accessed: APRIL 2015) 10. EUFADN Database (accessed on 04/05/15) 11. www.madr.ro 12. Ordonanta Guvernului nr. 67/2004, aprobată prin Legea nr. 465/2004 13. Regulation of the European Commisssion (EC) 868/2008  14. Regulamentul 1217/2009 CEE, varianta consolidată a Regulamentului nr. 79/65/CEE.      

Farms regional economic developments identified in the FADN PANEL

Munich Personal RePEc Archive

MPRA
Munich Personal RePEc Archive
Farms regional economic developments
identified in the FADN PANEL
Ionela Mituko Vlad and Valentina Tudor and Elena Stoian
and Marius Mihai Micu
The University of Agronomic Sciences and Veterinary Medicine in
Bucharest, The University of Agronomic Sciences and Veterinary
Medicine in Bucharest, The University of Agronomic Sciences and
Veterinary Medicine in Bucharest, The University of Agronomic
Sciences and Veterinary Medicine in Bucharest
20 November 2015
Online at https://mpra.ub.uni-muenchen.de/69345/
MPRA Paper No. 69345, posted 8 February 2016 14:46 UTC
FARMS REGIONAL ECONOMIC DEVELOPMENTS IDENTIFIED IN THE 
FADN PANEL  
 
IONELA MITUKO VLAD1, VALENTINA TUDOR2, ELENA STOIAN3, MARIUS MIHAI 
MICU4  
 
Abstract: The paper adresses an approach on indicators from the public database FADN (Farm Accountancy Data 
Network), at farm level selected from Romania. The study focused on analyzing the data series in 2012 (the latest year 
reported in the FADN) and the second part of the study was supported by the report on the last six years (2007-2012) 
and four of the eight regions. The data comes from public database FADN and the methodology consisted of a 
descriptive analysis of the data and presenting them as graphic and tabular form. The results recorded consisted of 
highlighting the differences between regions and survey findings have highlighted a decrease in interest and rental 
costs and also in investment levels, compared to 2012; in the same conditions, the total production and cash flow 
increased. 
 
Keywords: farms, Romania, FADN, regional, productions, indicators. 
 
INTRODUCTION 
 
Romanian agriculture is one of the most important sectors, both in areas for cultivation and 
by the diversity of crops and direction of production. However, agriculture has had to face many 
challenges, particularly in the last 20-25 years, and its assertion as the basic sector in the economy 
was influenced by measures related to European harmonization. In these circumstances, the need 
for a study based on actual data collected from a representative sample of farms in all regions and to 
bring results related to agricultural economic indicators, found their place in research field. FADN 
was introduced as the data collection system 50 years ago, in 1965. Currently it uses data from 
about 5,000,000 farms in the 27 European member countries, representing more than 90% of total 
EU agricultural production. This is designed to collect accountancy data on agricultural holdings in 
order to determine the revenue and analyse the agricultural business. An existing database query 
could get to the link http://ec.europa.eu/agriculture/rica/database. FADN was helpful from the start 
in configuring and adapting the common agricultural policy, in a real database. In Romania, the 
establishment of the Farm Accountancy Data Network was done by O.G. 67/2004, approved by law 
no. 465/2004. Liaison Agency for Romania is the RICA department from the Ministry of 
Agriculture and Rural Development. This agency carries out an annual survey and then, the 
questionnaires are transmitted to European Commission for validation and payment. Research based 
on FADN information are essential trace from the reform process and evaluation of CAP measures, 
but also in achieving long-term agricultural policies. (www.madr.ro). For the accounting year 2012 
were collected accounting information from 6,000 farms, from which were validated by the 
European Commission (EC), a number of 5717 farms. Data confidentiality is an important issue for 
the farmer who provides the data; this is ensured by Article 16 of Regulation 1217/2009 EEC, 
consolidated version of Regulation No. 79/65 / EEC. FADN database provides the data as standard 
results that can be consulted through a series of reports, organized in datasets. The European 
Commission has defined each variable in standard results in order to ensure a correspondence 
between the definitions of its own variables and those of other institutions producing agricultural 
statistics The results calculated for each year is average and are given in € (EUR / ECU), which will 
allow data to be aggregated in any country and compared. Research based on the same database 
were also made by other authors. In this respect, we mention Kusz, Gedek, Ruda and Zajac (2014), 
authors who were interested especially regarding data on farm investments. Also based on data 
                                                          
1 Lecturer PhD Ionela Mituko VLAD, U.A.S.V.M. Bucharest, bmitsouko@yahoo.fr 
2 Professor PhD Valentina TUDOR, U.A.S.V.M. Bucharest, valentina_tudor@yahoo.com 
3 Professor PhD Elena STOIAN, U.A.S.V.M. Bucharest, stoian_ie@yahoo.com 
4 Lecturer PhD Marius Mihai MICU, U.A.S.V.M. Bucharest, micumariusmihai@yahoo.com 
provided by FADN, researchers Skarżyńska, Grzymek and Abramczuk, (2014) analyzed data on the 
global economic situation of Eastern European countries. Likewise, the authors Veveris, Krievina 
and Leimane (2007) underlined the positive and negative aspects of agriculture in Latvia, cost 
structure issues through the analysis of economic information farms, using FADN data. Farm 
efficiency issues, using FADN data, were elaborated by Toma (2010) who considered that "FADN 
is an instrument based on annual survey of incomes and results evaluation ...". Approaching the 
same source of information, Simtion (2014), focused on analyzing the data standardization in 
agriculture. On his turn, Dona (2013), made an analysis on the evolution of specialized horticultural 
or mixed farms, also based on information obtained from FADN. In the same respect and based on 
the same source of information, details on some productions have been presented by Kuta and 
Golab (2014) focusing on the production costs and the profitability of different varieties of potatoes. 
Finally, we mention the study of Chavas (2011) who appreciate the fact that it will need more 
studies to increase the understanding on the environment and how it has to be transformed "into 
supporting and feeding the human race, including estimating the economic value of 
multifunctionality in agriculture …”.  
 
MATERIAL AND METHODS 
 
As we mentioned, the data used in the study were collected by FADN in the Romania’ 
sample in 2012 and data from the regional level during the 2007-2012 period. For the analysis at the 
regional level, we chose from the 8 regions, only 4- North-East, West, North West and Centre. The 
other 4 regions (South East, South Muntenia, South-West Oltenia and Bucharest-Ilfov), will not be 
addressed in this study, and it will be the subject of subsequent works. Groups of variables chosen 
for this regional analysis were as follows. Structure variables (labor paid and utilized agricultural 
area), then, variables ranging from production (output crop production, output livestock production 
and  farmhouse consumption); category of chosen data from costs and taxes were related to rent and 
interest paid and taxes; balance indicators focused on the following variables: buildings, machinery 
and short-term loans, medium and long term loans. The last category of indicators (financial 
indicators), referred to the investment and cash flow. The data used in this study and their 
description comes from public database FADN (EUFADN Database, Eurostat), accessed in April-
May 2015). The methodology consisted of descriptive data analysis and comparative analysis 
results are presented in tabular and graphical form. 
 
RESULTS AND DISCUSSIONS 
 
In this part of the paper, we present the categories of indicators, the results of comparative 
analysis between the 8 regions (North East, South East, South Muntenia, South West Oltenia, West, 
North West, Centre, Bucharest-Ilfov) in the year 2012. In this regard, Fig. 1 illustrates paid labor 
and the utilized agricultural area on the 8 regions. Thus, we can see a proportional evolution of the 
two indicators. The following figure (Fig.2) captures comparative graphical form, the crop and 
animal production and farmhouse consumption in all 8 regions in 2012. We identified an important 
level of crop production in the South East, West and Bucharest Ilfov, a level of animal production 
in the South East, West and Central. Farmhouse consumption is a relatively important in all regions. 
  
Fig. 1: Production structure, 2012                                          Fig. 2: Crop and livestock production, 2012 
Source: EUFADN Database Eurostat, Extracted 04/05/15    Source: EUFADN Database Eurostat, Extracted 04/05/15 
  
The charts that follow refer to two categories of costs and revenue indicators both for 2012. 
The categories of costs considered are interest and rent paid. We note in this regard that the greatest 
interest paid is registered in Bucharest-Ilfov region, and the lowest is recorded in region North East. 
Regarding the rent paid, the areas with the highest levels are in order South East, South Muntenia 
and West, and the lowest rent paid was recorded in the South-West Oltenia. 
  
Fig. 3: Costs categories, 2012                                                    Fig. 4: Net income/farm, 2012 
Source: EUFADN Database Eurostat, Extracted 04/05/15        Source: EUFADN Database Eurostat, Extracted 04/05/15 
 
The indicator Net income / farm is represented in Fig. 4 as a percentage of the total per 
year. We will noted so that the highest income is recorded in the West region (21%), followed by 
the South East (17%) and the lowest rent is recorded in the North East (8%). 
 
                     Fig. 5: Indicators Balance, 2012, Source: EUFADN Database Eurostat, Extracted 04/05/15 
A representation of the indicators "buildings" and "machinery" is made in Fig. 5. We can 
see that the North East region has the lowest level in machinery and in the Southeast it wa found the 
lowest buildings level. Bucharest Ilfov region has recorded the highest level for the two categories 
and this may be the raison for the highest level volume level of interest paid in the region. Next, we 
present in tabular form the six years dynamics of the previous indicators, only four development 
regions (Northeast, West, North West and Centre), during the 2007-2012 period. Thus, Table 1 
presents the evolution in the groups of indicators on the structure and outputs. 
Table no. 1: Structure and productions. Data is expressed in procentage (%) baded on the year 2012, 2012=100% 
Year Region Paid labour 
Input 
Utilised 
Agricultural Area 
Output - crop 
production 
Output - livestock 
products 
Farmhouse 
consumption 
2011 NE 114,6 102,9 109,3 117,2 115,8 
W 104,7 97,6 98,2 106,4 108,3 
NW 137,5 109,3 103,1 111,5 98,4 
Centre 128,3 95,7 99,7 110,4 95,1 
2010 NE 105,8 107,1 113,1 121,5 114,2 
W 109,1 102,2 95,6 94,6 104,4 
NW 171,4 107,1 101,3 117,9 97,2 
Centre 127,2 92,5 92,1 107,5 138,2 
2009 NE 162,6 100,3 89,9 78,4 158,5 
W 114,4 79,6 54,7 82,0 232,9 
NW 179,5 95,0 98,7 82,0 133,1 
Centre 196,6 108,4 94,0 100,1 212,9 
2008 NE 153,5 75,5 94,2 59,3 171,7 
W 205,5 67,5 44,9 68,0 158,8 
NW 241,0 86,9 95,4 83,6 66,8 
Centre 283,2 87,4 102,5 122,6 189,9 
2007 NE 268,3 70,5 69,9 69,2 170,5 
W 194,6 62,6 52,1 76,0 198,9 
NW 417,5 79,0 83,5 203,2 79,3 
Centre 524,2 88,0 81,9 322,9 185,9 
Source: EUFADN Database Eurostat, 2015 
From the table we can see that in terms of paid labor, this is an increase compared to 2012. 
The next three indicators (area used, crop and animal production), have recorded a constant growth, 
and we can even say that these indicators have had, with some exceptions, lower values in the years 
prior to 2012. The last indicator in Table 1, farmhouse consumption had a positive dynamics in the 
years prior to 2012, except the North West region where consumption was lower from the reference 
years before 2012, the other areas were with higher percentages of 100%. The following table 
presents the dynamics of costs and loans, compared to 2012. We can say that rent paid until 2012 
were lower than in 2007-2011 in all regions, except the North East, in 2010 and 2011. Interest 
payments are higher than the reference year, indicating possibly a relaxation of or a decrease in 
credit interest. Medium and long-term loans had a lower dynamic forom the reference year, except 
in the North East and North West areas. Short-term loans were higher by 150% in 2007-2011, 
compared to reference year 2012. 
Table no. 2: Costs and balance indicators. Data is expressed in procentage (%) baded on the year 2012, 2012=100% 
Year Region Rent paid Interest paid Long & medium-term loans Short-term loans 
2011 NE 101,0 204,2 145,9 251,4 
W 70,8 148,6 81,4 280,8 
NW 78,5 160,0 181,3 23,5 
Centre 76,8 157,9 50,7 187,6 
2010 NE 106,1 245,8 206,1 323,9 
W 82,7 91,9 74,0 120,5 
NW 71,3 196,0 208,6 86,8 
Centre 83,2 133,3 44,1 166,8 
2009 NE 76,1 137,5 65,7 165,1 
W 49,9 144,6 74,1 368,6 
NW 58,8 236,0 261,0 373,5 
Centre 70,7 396,5 126,9 278,3 
2008 NE 33,1 183,3 171,3 185,3 
W 43,4 154,1 104,4 464,7 
NW 39,8 252,0 56,1 154,4 
Centre 70,4 386,0 149,8 337,8 
2007 NE 36,2 191,7 106,1 181,7 
W 54,0 106,8 193,5 123,7 
NW 54,3 1380,0 524,1 1441,2 
Centre 70,1 1414,0 763,4 1167,3 
Source: EUFADN Database Eurostat, 2015 
In the Table. 3, are presented in dynamics flows the financial indicators compared to 2012 
and this indicates a significant fluctuation for gross investments and Cash Flow indicator is 2007-
2011 to a lower level of the 2012 year. This could lead us to the idea that in 2012 it was made more 
investments, combine with a cash flow that also had a larger volume compared to the previous 
period. 
Table no. 3: Financial indicators. Data is expressed in procentage (%) baded on the year 2012, 2012=100% 
 
Source: EUFADN Database Eurostat, 2015 
 
 
 
Year Region Gross Investment Cash Flow 
2011 NE -175,0 110,1 
W 214,0 84,3 
NW -178,9 92,0 
Centre 92,0 91,1 
2010 NE 150,8 87,0 
W 89,3 76,5 
NW 163,9 89,9 
Centre 47,8 76,2 
2009 NE 57,8 65,4 
W 196,6 35,7 
NW 187,9 80,2 
Centre 142,7 52,4 
2008 NE 66,4 56,2 
W 238,8 29,5 
NW 25,5 86,6 
Centre 108,0 72,6 
2007 NE 92,2 39,5 
W 87,4 32,5 
NW 77,6 86,6 
Centre 422,6 62,7 
CONCLUSIONS 
As findings of this study will include the following. In 2012, analyzed for all eight regions, 
workforce and total area were noted related data and production volume was proportionally. 
Comparative cost analysis showed us a huge amount of interest paid Bucharest-Ilfov region, where 
we find also the highest volume of machinry and buildings, meanwhile, in North East region this 
index is the lowest. At the same time, rent payments may reach from 244 euros (South West 
Oltenia) to 1048 (South East). Net income / farm appears to be correlated closely with those costs. 
We are talking about a maximum of 21% of the total in 2012 to the West, while the minimum (8%) 
is reached in the North East and South Muntenia. Compared with 2012, the analyzed indicators in 
2007-2011, in four selected regions, recording a decrease overall costs, an increased in production 
level, but at the same time, investments are affected and the cash flow indicator increased. 
 
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Farms regional economic developments identified in the FADN PANEL

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