SEEA for Agriculture, Forestry and Fisheries

Transcription

1 SEEA for Agriculture, Forestry and Fisheries Global Consultation Comment Form Deadline for responses: 11 January 2016 Please send responses to: Your name: Your country/organization: Contact (e.g. address): Florian Kohler and Franz Murbach Switzerland, Federal Statistical Office FSO To submit responses please save this document and send it as an attachment to the following address: The comment form has been designed to facilitate the analysis of comments. In Part I general comments on the general style, structure, content and coverage of the chapter are sought. In Part II any technical and other comments should be included.

2 Relevant documents Before submitting responses you are encouraged to read the accompanying draft paper available on the SEEA website SEEA for Agriculture, Forestry and Fisheries: Draft for global consultation 1 GENERAL COMMENTS In this section please provide general comments on the draft. You may like to consider providing comments on the style and tone, the structure and organisation, the content and coverage, and the general accessibility of the material. The SEEA Agriculture is well structured and balanced, concise, globally clear and understandable. We consider the document an excellent foundation for organising information on Agriculture, Forestry and Fisheries and we support most of the chosen methodological approaches. We acknowledge the improvements made since the previous consultation. However, in order to be finalized we think that the document can still benefit from a certain number of improvements (c.f. also details in Part II below). General remarks: Nomenclatures, classifications and codification At that stage it seems necessary to introduce wherever possible or relevant nomenclatures, classifications and codification. It is partly already achieved in the final draft, especially where ISIC is mentioned. This is an important milestone on the road to international harmonisation and standardisation. 1) each time SNA is quoted, it would be useful to put codification beside the quoted component (example: Output (P.1) ). 2) every component of tables (rows, columns) could be codified and classifications defined according to official classifications (SNA, ISIC, CPC, Land Use, Land Cover, etc.) or new SEEA specific classifications. Definition food waste / losses / unused biomass The losses issue plays an important role in SEEA Agriculture. Presentely we find that concepts and definitions on this topic are not enough clear and precise. Definitions of the different notions around that topic (losses, unused resources, residuals, re-use, waste, recycling, etc.), a complete list or even a nomenclature of all types of losses occurring along the production chain, and the bridges between them and between SEEA Agriculture, SNA and EW-MFA would be very useful. This is very probably a key point to allow international comparisons. SEEA AFF or Agriculture Finally we regret that in the short name of this SEEA module, AFF was replaced by Agriculture. The term Agriculture is at least in our country generally not understanding as

3 including Forestry and Fishery. The new short name (SEEA Agriculture) will therefore potentially exclude people from forestry and fishery areas who will at a first sight not feel concerned. 2 TECHNICAL AND OTHER COMMENTS In the box below please supply any additional comments including those of a more technical nature. Please reference your responses with the relevant paragraph numbers or section numbers. 1.34: What is food waste flows or fatal product flows? Food waste should be clearly described, classified and defined. Food waste is not necessary waste, as biomass can be used/reused for fodder or energy or other uses 1.46: How is extensive or intensive livestock production defined? According to which input? land, capital, work, energy, water, etc.? It would be useful to consider production intensity as it would strengthen the environmental dimension of SEEA Agriculture : Switzerland supports the potential extensions in the design of the SEEA Agriculture considering the supply of ecosystem services from agricultural areas, forests and fisheries ecosystems to other economic units and to society in general. We welcome pilot accounting studies and research in this respect, in order to consider the measurement of the state of ecosystems and how it changes over time, including relevant characteristics as water resources, soil type, climate and biodiversity. 2.48: Following argument can be added here: By increasing the level of disaggregation of the IOT the quality of deduced indicators will be increased. 2.62: Yes, but this would only be possible if the whole food / agro chain would be implemented. The intermediate link between primary production and consumption (mainly agro-industry) is missing in the actual delimitation proposal of SEEA Agriculture. Table 3.3: it would be helpful to add the SNA2008 classification codes (monetary) to avoid any misunderstanding and to support standardisation (example: catastrophic losses (K.3)). Table 3.4: why not rename N/P budgets to Physical flow accounts of N/P? Table 3.4: For crop production specific accounts have been described (fertilizers, pesticides ); the same should be done for animal and aquaculture production (examples: veterinary services and medication, fodder).

4 Table 3.4: Other economic data should be renamed and completed. Name could simply be Economic accounts for agriculture, forestry and fisheries. The accounting sequence (from output to primary income) should be completed by accumulation accounts (capital account, changes in inventories/assets accounts) and balance sheets (economic assets). 3.51: An absolute alignment between physical and monetary dimensions of IOT doesn t exist, as exceptions have to be defined (see Eurostat s handbook EAA/EAF): for example: crop production for own use of seed and planting stock or dairy production for feeding own calves are physically recorded but equals 0 in monetary terms (this aspect deals with intra-unit transactions inside the same activity, which are not valued in monetary terms according to SNA, in opposition to intra-unit transactions between two different activities, like growing fodder for dairy production or growing standing timber for logging). 3.53: The fodder balance sheet should be mentioned here as a complementary account to the food balance sheet. 3.60: The sum of the gross operating surplus, gross mixed income and compensation of employees provides an estimate of the value added of the activity : this is an inverted sequence. The general practice of compiling economic accounts goes the other way round: first compilation of output, then inputs (intermediate consumption, compensation of employees, production taxes and subsidies). GVA and other balancing items are results of the accounting sequence. We ask that SNA2008 is quoted here, and the clear definitions and codification used (for instance, value added is gross or net (GVA or NVA)). In practice, a subdivision to 3-4 digit ISIC of accounting sequence is difficult to compile, as mixed farming for instance prevails in many regions and countries, like Switzerland for instance. 3.61: It has to be pointed here that hours worked by employees are just a (minor) part of labour input, as non salaried (independent) work plays a very important role in family based farming. 3.63: what is exactly meant here by outside in accounting approach? This has to be more precisely described. Chapter 3.3.4: at least one specific point has to be added to the chapter: the whole agricultural/forestry/fisheries policy issue (subsidies and taxes, capital transfers) has to be mentioned, as production taxes and subsidies play a very important role in agriculture, forestry and fisheries. So important that the relevance of GVA has to be put in question and the balancing item factor income (net value added less taxes on production plus subsidies on production, otherwise known as net value added to factor costs) brought forward. 3.67, point i): plant production is not only crop harvests, but also production of plant material which is not harvested but replanted (output in nursery and ornamental living plants). 3.67, point ii): no, that has to be corrected: agricultural animal products are clearly output from agriculture industry, and may not be mixed together with manufacturing industries! For example: raw milk, eggs, raw silk, wool, honey, bee wax, etc. The same for forestry (raw rubber, latex, cork ). 3.67, point iii): forest nurseries could also be mentioned. The definition of forestry according to ISIC:

5 growing of standing timber and forest nurseries. 3.67: new point v): please consider adding a new point which deals with secondary non agricultural / forestry / fishery activities, non separable of main activities: consistency with accounting sequence should be mentioned here. Chapters 3.4.3, and 3.4.5: We suggest to better describe similarities and difference between physical and monetary flows. A major difference between physical flows and monetary flows are the recording rules of intra-unit flows (output (P.1) for intra-unit intermediate consumption (P.2)). Although the topic is approached in chapter 3.4.3, it would be helpful to sketch the basics as a bridge between physical and monetary IOT. Following transactions can be defined (a schematic double table helps): Recording of physical flows A. Intra-unit flow B. Inter-unit flow 1. Intra-activity flow (ISIC 2 digit) Yes Yes 2. Inter-activity flow (ISIC 2 digit) Yes Yes Recording of monetary flows A. Intra-unit flow B. Inter-unit flow 1. Intra-activity flow (ISIC 2 digit) No Yes 2. Inter-activity flow (ISIC 2 digit) Yes Yes An indicator [flow (monetary) / flow (physical)] can therefore only apply for subset {A2;B1;B2}. Examples in primary production for subset {A1} are: dairy production for intra-unit calves fattening, wheat grains for intra-unit seeds for wheat field. Examples in primary production for subset {A2} are: Fodder production for own dairy production, standing timber for logging Examples in primary production for subset {B1} are: Seed production for bread cereal production, heifer raising for dairy production, hatching eggs production for laying hens Main rule should be that recording of physical flows is exhaustive, regardless if the flow goes over a market transaction (output production border according to SNA) or not. In our example, if the dairy production for fodder for calves fattening is used by the same unit or another unit doesn t change the total amounts in physical units of milk produced, but will affect the total output in monetary terms. In a completely specialised production process (solely specialised dairy or specialised fattening units), then total output (in monetary terms) will be coherent with the total amount of milk produced (in physical terms). 3.72: separate recording only if the activity can be separated, or else it s a secondary non separable non primary (agriculture / forestry / fisheries) activity (please see Eurostat s handbook EAA/EAF). 3.73: we ask here that following would be considered: the growing and use of standing timber for removal and production of wood in the rough by the same economic unit follows similar recording principles than those describing the intra-unit production and use of fodder, as there is also a transaction between two different activities (forestry and logging) in the same economic unit. 3.79: Reference is missing

6 : The issue here is less if the effect is big or small (in some cases it will be significant), but much more the aspect of consistency between IOT NA, IOT SEEA Agriculture and Economic Accounts for Agriculture, Forestry and Fisheries (GVA, etc.). Not only secondary inseparable non agriculture / forestry / fisheries activities are to be considered here (it is important not to mix up secondary agricultural / forestry / fisheries products with secondary non agricultural / forestry / fisheries products), but also main activities like agricultural or forestry services are of significant importance, especially in highly specialised production processes. Therefore, it is necessary to introduce the needed recording lines and columns in order to insure the bridges between IOT solely agriculture / forestry / fisheries goods and total output / total intermediate consumption and following inputs. As secondary inseparable activities cannot be separated per definition, it will not be possible to compile straightforward GVA, mixed income etc. without taking into account this dimension of production. 3.92: Normal losses in forestry are recorded under mortality, that means are already taken into account in the compilation of Net Annual Increment (Gross Annual Increment less Mortality, that means losses on standing timber through windfall, fire, insects ). IEEAF specifies that those losses are already deducted from the Net Annual Increment, which is the component to be recorded as output. As SEEA Agriculture aims to consider environmental issues, it has to be specified here that losses may not be equal to inefficiency. It is of outmost importance that an optimal part (which may vary from case to case, depending on soil and other factors) of biomass remains on field / on forestry soil, to insure a sustainable production (regeneration of the organic part of soils). Those aspects should be put forward here, to give a balanced and comprehensive view of how losses should be interpreted in environment economics. 3.94: Household consumption in national accounting terms is equal to the quantity of commodities purchased : the term purchased seems to limitative here according to SNA (see ESA and following), as household final consumption expenditure (P.3) includes also income and output for own consumption in kind. Could be completed: Household consumption in national accounting terms is equal to the quantity of commodities purchased, received as income in kind or produced as outputs of unincorporated enterprises owned by households that are retained for consumption by members of the household : one loss which seems missing and which could be very important is the loss of water through dessication of the product along the production chain. In winery and spirits industry the loss of alcohol plays also a role. Furthermore, the so-called cascade uses of biomass is a trendy approach of sustainable production and value added chains. Wood is a good example: first the raw material is used in building or furniture, where the biomass is immobilised as a part of assets for decades or centuries. Then, when the asset is discarded, the wood can be reused as pulp or for other industrial uses. Then, at its final stage, the wood (cellulose) can be used as energy source. This issue should also be put forward by SEEA Agriculture : Besides of spatial comparisons, also time series could be mentioned here. Especially in the case of pesticides, time series can be difficult to analyse, as composition of active substances may have significantly changed over the years. Table 3.7: Also organic production of livestock (as parallel to crop production) could be shown here (livestock, of which organic production).

7 Table 3.8: Would be nice to have, but this table can only be compiled at 2-digit level of activities (Agriculture, Forestry, Fisheries). Table 4.1, a): Wine and Olive oil production based on own produced grapes / own produced olives could be added here, as output of agriculture. 4.26: ignoring these additional step will make very difficult to connect primary production and final consumption. The IOT approach according to SNA could be of great help here (a 3-dimensional IOT): dimension 1: supply, dimension 2: use and dimension 3: margins (trade, transport) and taxes and subsidies on products (as price components enabling the bridging between the different price concepts). Table 4.2: Raw milk and honey are generally not compiled in litres, but in tonnes! Please change unit to 000 tonnes. The same could apply to eggs, where both are possible (number of eggs or eggs in 000 tonnes). Table 4.5: to be added: pulp (industry) wood, other types according to CPA (unprocessed roundwood). Bark: please leave the bark issue open: bark can be returned / or stay in the forest, perhaps it would be better to leave the bark issue out of consideration, is matter of unit definition. Roundwood: can also be directly used as gross fixed capital formation (GFCF) as it can be embodied in soil improvement and protection construction for example; so a column GFCF should be provided in the use table : it has to be mentioned here that charcoal produced traditionally in the forest is a forestry product and therefore recorded as an output of forestry! 4.122: changes matrix (changes between type of land use) can be a useful tool. Please add a note here. Table 4.6: why this account in hectare is not include directly in the table 4.17 Asset account for landuse? : a major issue of forests management could be mentioned here: the CO2 captation function, and the CO2 balance sheet (as IEEAF proposes). Again we would like that the cascade effect of wood flow would be mentioned (see 3.96) : is it really the role of SEEA agriculture to give detail on other parts of the economy which should be developed with the SEEA water by specialists of the other branches. We propose to include the total but no more detail, and to zoom into water supply and use of agriculture, forestry and fishery : the dark grey cells indicate combinations of supply and use that are unlikely to apply : this sentence should appear before because if we understood correctly it is always the case. Chapter : Why these account are part of the SEEA Agriculture. This is the SEEA water? Table 4.12: Much more we would suggest to use SEEA Agriculture as a zoom on the water balance and flow account, following items would be included to give a quantitative and qualitative

8 comprehension of the linkage between water and agricultural / forestry / fisheries activities: - Pesticides residuals - Fertilisers and manure residuals - Forests as water supplier / water tank - Livestock - Hydric balance (annual and monthly data) Table 4.13: same remark than for water detail outside Agriculture/Forestry/Fisheries are out of the scope. As for table 4.12, we sould suggest to use it as a zoom, and enhance the role of agriculture / forestry / fisheries in the energy flows (supply table of a) biomass energy products b) use of assets (land, water surface, buildings) for agriculture / forestry / fisheries to produce energy, as for instance windmills and photovoltaic power). Table 4.14 : it will be possible to add CO2 by combustion of biomass. And CO2 captation by biomass increment (see forest and land assets tables, where for example standing timber / roots and soil play a CO2 captation role) : Data are expressed : this sentence appear in each paragraph please find a way to avoid this : IPCC reporting is a good source of information BUT the statistical limits are not those of the SNA/SEEA which implied some adjustements. This should be noted here : the assumption that organic farming doesn t imply the use of manufactured pesticides may not be correct, as for instance copper based fungicides are used in organic farming. Better speak here of no synthetic inorganic chemicals and no synthetic organic chemicals : other uses should be renamed in other industries, to be consistent with table Table 4.17: The feasibility of this table is problematic, unless following items are discarded: a) the category maintenance and restoration is not supported by Land Use Classifications and therefore cannot be compiled b) the detail of inland waters is not available and cannot be compiled : the definition of subsidies has to be more precise, and SNA has to be clearly quoted here: - D.311 and D.319: Subsidies on products (D.111 on imports, D.319 other). Proposal for a new sentence, in replacement of Subsidies are included ( ) total supply at basic prices. : Subsidies on products are included in the output valued at basic prices as received by the producing economic unit, but are not paid by the purchasing economic unit of the product; instead, those subsidies on products are transferred by the government to the producer. In table 4.20 the other subsidies on products (D.319) are recorded as a component of output valued at basic prices, and the subsidies on imports (D.311) are recorded as a component of imports valued at basic prices. As a whole, the total supply is therefore valued at basic prices. Table 4.20: Following items are missing: Columns: a) Supply: Imports, of which Subsidies on imports

9 b) Supply: Bridge between valuation at basic prices and at purchaser prices: Taxes on products, trade and transport margins c) Use: Government final consumption Rows: Consistency of output value between table 4.20 and 4.21 has to be obtained in introducing following rows: a) Output of agricultural and forestry services b) Output of inseparable secondary non agricultural/forestry/fisheries products Table 4.21: This extended production and income account for primary activities has to be completed as follows, as some key elements for analysis are missing: a) Transfers with government; D.29 other taxes on production and D.39 other subsidies on production b) Employment should be avoided; better speak of Jobs (salaried and non salaried jobs), expressed in annual working units (AWU). c) Property income (D.4): receivables and payables (mainly D.41 Interests and D.45 Rent). d) Entrepreneurial income, gross / net (B.4g, B.4n) e) Table could be turned in the other way round : activities as columns, accounting items and exogen variables as rows f) Activities cannot be compiled as detailed as wished: only to 2-digit ISIC (3 branches: agriculture, forestry, fisheries). Chapter 5, 3-tier approach: delimitation of the three tiers is not clear enough, tier 1 seems already very ambitious and partly unfeasible with actual data sources and statistical resources. 5.53: of big help would be to add as annex bridge tables between EAA/EAF (IEEAF, Forest Accounts) and SEEA Agriculture, as well as bridge tables between SEEA Agriculture and National Accounts.