Economic definitions

1. Farm gross output

Sum of all sales of crops, livestock and livestock products and other revenues; this should include the value of farm produce used in the house. For this Multi-Criteria sustainability Assessment tool, subsidies are not comprised.

2. Farm gross margin

Difference between the farm gross output and the direct production costs, where direct production costs are the ones directly incurred in the production of a particular enterprise, i.e. the costs specifically related to livestock, crops, and other sources of income (e.g., biogas-specific costs, forestry-specific costs).

3. Farm net income (before depreciation)

Farm gross output – all costs (including indirect costs, general/overhead costs, external costs, taxes) + subsidies.

4. Annual work units

The Total Annual Work Units are obtained by summing all work hours and dividing them by 1.800 (1.800 hours = 1 Eurostat work unit).

5. Annual Unpaid work units

Sum of all unpaid work hours (i.e. work of the family components) divided by 1.800 (1.800 hours = 1 Eurostat work unit).