Indicator Definition IRENA 11 - Energy use (D) 1. Annual use of energy at farm level by fuel type. 2. Annual use of energy per unit of production, per ha of crop and per livestock unit. Indicator links Input Indicator Links: IRENA 08 - Fertiliser consumption IRENA 27 - Production of renewable energy (by source) Output Indicator Links: IRENA 34.1 - Share of agriculture in GHG emissions Key message 1) The proposal is to focus on the two indicators identified: Annual use of energy at farm level by fuel type. Annual use of energy per unit of production, per ha of crop and per livestock unit. 2) Data for these indicators is from the Farm Acountancy Data Network (FADN) of the European Commission (DG Agriculture) and from Eurostat (NewCronos themes 5 (EUROFARM) and 8 (SIRENE). 3) Energy use based on final energy consumption in agriculture from SIRENE and EUROFARM (Figure 1) and the annual costs of energy from FADN (Figure 2) show similar patterns on a per hectare basis. 4) The regional level of energy consumption and the distribution over fuel types mainly depend on the regional agricultural structure (e.g. farming types and intensity of production). The costs of energy per 100 euro of output mainly indicates the efficiency of energy use. The costs of energy on a per hectare basis and on a per livestock unit basis especially give insight in energy use patterns for different farming practices (linking energy use to the farming systems typology (IRENA indicator 13: Cropping and Livestock patterns) is advisable). 1
Figure 1 Final energy consumption in agriculture per ha UAA by fuel type in 2000 (Source: Eurostat (SIRENE and EUROFARM)) 80 70 60 50 Gigajoules/ha 40 30 20 10 0 Netherlands Belgium Denmark Finland Greece Italy Austria Portugal EU-15 Sweden Germany Luxembourg France Spain United Kingdom Ireland Country Crude oil and Petroleum Products Gas Electrical Energy Renewable Energies Solid Fuels Derived Heat 2
Figure 2 Annual costs of energy per ha UAA (Source: FADN 2000) 500 400 300 euro/ha 200 100 0 Netherlands Belgium Germany Greece Finland Italy Denmark Sweden Austria EU-15 France Luxembourg United Kingdom Portugal Spain Ireland Country Motor fuels and lubricants Electricity Heating fuels 3
Figure 3 Annual costs of energy per 100 euro output (Source: FADN 2000) 9.0 8.0 7.0 6.0 5.0 euro 4.0 3.0 2.0 1.0 0.0 Finland Sweden Germany Netherlands Portugal United Kingdom Greece Austria EU-15 Italy France Luxembourg Denmark Ireland Belgium Spain Country Motor fuels and lubricants Electricity Heating fuels 4
Figure 4 Annual costs of energy per 100 euro of output (Source: FADN 2000) Energy_Output < 4.0 4.0 - < 7.0 >= 7.0 No Data 5
Figure 5 Annual costs of energy per livestock unit (Source: FADN 2000) 200 150 euro/ha 100 50 0 Greece Finland Italy Sweden Netherlands Germany Portugal Austria EU-15 France Spain United Kingdom Denmark Luxembourg Belgium Ireland Country Motor fuels and lubricants Electricity Heating fuels 6
Methodological Approach Introduction Direct energy use in primary production is mainly related to heating (e.g. through the use of oil and electricity) and the use of machinery (e.g. transport with tractors). Total final energy consumption in agriculture as a percentage of total energy use in EU Member Countries ranges between 0.5% and 6.5% (OECD, 2003). In addition, energy is also used by agriculture in an indirect manner for the production of agrochemicals (e.g. fertilisers), farm machinery and buildings. Considerable amounts of natural gas are used for the production of inorganic nitrogen fertilisers. In the Netherlands, for example, three quarters of total amounts of natural gas used in the fertiliser industry is used for non-energetic purposes, serving as input for the production process. Energy demand in agriculture varies largely across livestock and crop production units, but tends to be high in intensive production units when measured per ha or per livestock unit. Economies of scale may be efficient in energy use if measured per unit of output. Energy is used throughout the production and processing stage. Since this indicator should refer to energy use at farm level, we suggest to only consider energy requirement for the production of inorganic nitrogen fertilisers, while leaving energy consumption for the production of external (bought-in) inputs outside the scope of this indicator. Agriculture as an energy user contributes to global warming. The sector makes a contribution to climate change mitigation through more efficient use of energy and inputs and the production of renewable energy. Such improvements in energy efficiency could provide economic benefits to the farmers when benefits exceed costs. Methods and tools Concept The indicators proposed will focus on energy use at farm level. Two indicators are proposed in the Methodology fact sheet No. 11 Energy use: Annual use of energy by fuel type. This indicator can be linked with emissions of carbon dioxide. Annual use of energy per unit of production, per ha of crop and per livestock unit. Limits (to available data) Annual use of energy by fuel type Data on this indicator is available from SIRENE for primary production only, at national level. No linkages with the farm systems typology (IRENA indicator 13: Cropping and livestock Patterns) can be made. This will therefore complicate the environmental assessment of the indicator certainly at a regional scale. Annual use of energy per ha of crop, per livestock unit, or per unit of production Data on this indicator could come from FADN but can only be expressed in monetary terms. Only limited data are avalable on direct energy consumption (i.e. energy directly consumed during primary production stage, excluding any upstream or downstream energy costs). An estimation of the energy use per agricultural input (e.g. fertilisers) would require volume data for each input to be multiplied by the energy conversion factor for that input. Indicator approach Inidicator 1. Annual use of energy at farm level by fuel type This indicator identifies energy use in agriculture by type of energy (Joules). Indicator 2. Annual use of energy per unit of production, per ha of crop and per livestock unit 7
These three types of indicators are relevant to identify energy use in cropping systems (energy use per ha of crop) and in livestock systems (with energy use reflected per livestock unit). Linking energy use to the farming systems typology (IRENA indicator 13: Cropping and Livestock patterns) is advisable as this will enable the linking between energy use to total output under different farming practices in different regions Proposal for indicator (given available data) The proposal is to focus on the two indicators identified: Annual use of energy at farm level by fuel type. Annual use of energy per unit of production, per ha of crop and per livestock unit. Data sources Three data sources are used: - FADN: energy costs in agriculture (euro per holding). This data base allows quantifying energy use per unit of production (output, hectare and livestock unit). A distinction is made in FADN into three variables on energy: 62. Motor fuels and lubricants. Includes also the shares for business use of private cars (by estimation if necessary), and excludes heating fuel. 79. Electricity. Total consumption for farm business use. 80. Heating fuels. Total consumption for farm business use. - SIRENE (part of NewCronos database from Eurostat), with information on energy use in agriculture, distinguished by energy type. This data base has figures on total final energy consumption (in TJ of net calorific value), at country level and for total of agricultural sector. In addition, New Cronos database (theme 9 environment and air emissions) provides emissions of greenhouse gases related to fuel types. - EUROFARM (part of NewCronos database from Eurostat), with information on the Utilised Agricultural Area of agricultural holdings. Results Crude oil and petroleum products is the main source of final energy consumption in agriculture in the EU-15 (Figure 1). In contrast, the use of gas is the main component of final energy used in agriculture in the Netherlands. Here, the high intensity of glasshouse production is a main factor that final energy use does reach that high level on a per hectare basis. A similar patterns is observed with annual costs of energy in agriculture to be depicted on a per hectare basis. Figure 3 presents the annual costs of energy per 100 euro of output from agriculture. Here, different explanations could be provided for the annual costs of energy to be above the average of EU-15. It is either because of high costs for motor fuels and lubricants (e.g. Sweden, Germany, Portugal, United Kingdom and Greece), electricity (e.g. Finland and Sweden) or heating fuels (e.g. Netherlands). Figure 4 presents a regional figure on the costs of energy per 100 euro of output from agriculture. National averages on the annual costs of energy per livestock unit are presented in Figure 5. In Greece and Finland, they are about double the average from the EU-15. In contrast, these costs are around half of the average from the EU-15 in Belgium and Ireland. Since total energy costs in agriculture are related to total number of livestock units, this figure might be biased by the share of livestock production in total agricultural production. 8
Subindicator (if required to complement header indicator) If available information on Energy use for fertilisers will be added at a later stage. Otherwise information on Costs of fertilisers per ha (See alsotable 3) or Use of fertilisers per ha could be considered. References OECD (2003) Agriculture and energy: developing indicators for policy analysis. Joint Working Party of Agriculture and Environment. Paris, Organisation for Economic Co-operation and Development, COM/AGR/CA/ENV/EPOC(2002)104/REV1. Data Format, title and location of data files Insert detailed tables of data used to create header graphs and maps Table 1 Total final energy consumption (sector code 101700) and final energy in agriculture (sector code 102030) in 2000 [See attached MsExcel file MDFS_EnergyUse_Table_1_SIRENE.xls] Table 3 Annual costs of energy per 100 euro of output, per hectare of UAA and per livestock unit (detailed data used to create the Figures 4, 6 and 7) [to be added] 9
Table 2 Indicators (aggregated at national level) Territory Costs of energy per 100 euro output (euro) Proportion of motor fuels and lubricants in total energy costs (%) Proportion of electricity in total energy costs (%) Proportion of heating fuels in total energy costs (%) Costs of energy per hectare of UAA (euro/ha) Costs of energy per livestock unit (euro/lu) EU 15 5.1 58 25 17 93 101 Belgium 3.6 28 36 35 145 52 Denmark 3.9 38 35 26 113 65 Germany 6.4 63 21 16 144 128 Greece 5.4 77 15 8 133 216 Spain 3.5 76 17 7 43 78 France 4.3 54 36 11 75 84 Ireland 3.8 75 25 0 33 28 Italy 4.7 78 13 9 114 188 Luxembourg (LU) 4.1 55 42 2 74 56 Netherlands 6.3 14 27 59 547 142 Austria 5.1 63 33 5 107 107 Portugal 5.6 69 30 1 49 111 Finland 9.5 36 31 33 130 211 Sweden 8.9 55 36 9 111 170 United Kingdom 5.6 66 22 12 66 75 Source: FADN-CCE-DG Agriculture/A-3; adaptation LEI. 10
Table 3 Background information (aggregated at national level) Territory Costs of fertilisers and soil improvers per 100 euro output (euro) Costs of fertilisers and soil improvers per hectare of UAA (euro/ha) Number of farms represented Utilised Agricultural Area (UAA) (ha) [FSS 2000] EU 15 4 81 3656958 1393780 Belgium 3 129 39387 2644580 Denmark 3 74 45494 17151560 Germany 4 87 253202 3583190 Greece 5 133 516115 26158410 Spain 5 57 703968 27856310 France 6 96 393920 4443970 Ireland 8 74 122125 13062260 Italy 3 78 925516 127510 Luxembourg (LU) 4 77 1864 2027800 Netherlands 2 185 76071 3388230 Austria 2 48 80076 3863090 Portugal 5 40 292112 2218670 Finland 7 95 46466 3073200 Sweden 5 68 38181 15798510 United Kingdom 6 73 122461 126791050 Sources: FADN-CCE-DG Agriculture/A-3; adaptation LEI and Eurostat (Eurofarm FSS 2000). 11
Figure 6 Annual costs of energy per hectare of UAA (Source: FADN 2000) Energy_UAA < 75 75 - < 150 >= 150 No Data 12
Figure 7 Annual costs of energy per livestock unit (Source: FADN 2000) Energy_LU < 100 100 - < 200 >= 200 No Data Meta data Provide information for the following items Technical information 1. Data sources: Farm Accountancy Data Network (FADN) of the European Commission (DG Agriculture) SIRENE (NewCronos\theme8\sirene\es_quant) of Eurostat FSS/EUROFARM (NewCronos\theme5\eurofarm) of Eurostat Proposed selection of variables from FADN: Costs of energy (by fuel type) per 100 euro of output, per ha of UAA and per livestock unit Costs of fertilisers and soil improvers per ha of UAA Proposed selection of variables from SIRENE: 13
Final energy consumption in agriculture by fuel type (in TJ of net calorific value). Proposed selection of variables from FSS/EUROFARM: Utilised Agricultural Area of agricultural holdings FADN 2. Description of data: The Farm Accountancy Data Network (FADN) is an instrument for evaluating the income of agricultural holdings and the impacts of the Common Agricultural Policy. The concept of the FADN was launched in 1965, when Council Regulation 79/65 established the legal basis for the organisation of the network. It consists of an annual survey carried out by the Member States of the European Union. 3. Geographical coverage: Available for EU-15 for agricultural regions. FADN figures are available on an annual basis for the European Union as a whole, distinguishing between about 104 regions by farming type (more or less a mix of NUTS 0, 1 and 2). The spatial level varies from the whole member state to regional level (the regions are also different from the regions as defined in FSS). 4. Temporal coverage: Surveyed since 1965? 5. Methodology and frequency of data collection: FADN consists of an annual survey carried out by the Member States of the European Union. The services responsible in the Union for the operation of the FADN collect every year accountancy data from a sample of the agricultural holdings in the European Union. Derived from national surveys, the FADN is the only source of micro-economic data that is harmonised, i.e. the bookkeeping principles are the same in all countries. Holdings are selected to take part in the survey on the basis of sampling plans established at the level of each region in the Union. The survey does not cover all the agricultural holdings in the Union but only those which due to their size could be considered commercial. 6. Methodology of data manipulation: Figures are based on regional calculations at HARM_1 level (100 regions in EU 15). (in the tables and figures aggregated figures are presented at national level and/or regional level). SIRENE 2. Description of data: SIRENE (part of NewCronos database from Eurostat), with e.g.information on energy use in agriculture, distinguished by energy type. This data base has figures on total final energy consumption (in TJ of net calorific value), at country level and for total of agricultural sector. 3. Geographical coverage: Country level 4. Temporal coverage: Annual 5. Methodology and frequency of data collection: 6. Methodology of data manipulation: FSS/EUROFARM 2. Description of data: This source of information provides figures on structural characteristics of agriculture in the EU, classified by farm type, farm size and region. As from 1990, Eurostat receives data on individual agricultural holdings collected during Farm Structure Surveys conducted in all the Member States of the European Union. This data is processed by Eurostat and the results are stored in the form of statistical tables in a database called EUROFARM. 3. Geographical coverage: The census data are presented at district level and the sample surveys at a less detailed regional level. 4. Temporal coverage: Most recent year 2000. Temporal development 1990-2000. 14
5. Methodology and frequency of data collection: As from 1990, Eurostat receives all data on individual agricultural holdings collected during Farm Structure Surveys conducted in all the Member States of the European Union. This data is processed by Eurostat into aggregated tables and the results are stored in the form of statistical tables in a database called EUROFARM (part of NewCronos).. FSS data are available at District level as from 1990 onwards for every 10 years. Data at a regional level, less detailed than district level, are available from 1993 onwards. Methodology of data manipulation: Quality information FADN 7. Strength and weakness (at data level): Expenses on energy expenses based on farm accountancy data, according to stratified sample of holdings across the EU 8. Reliability, accuracy, robustness, uncertainty (at data level): 1 9. Overall scoring (give 1 to 3 points: 1=no major problems, 3=major reservations): 1 Relevancy: 2 (figures are in monetary terms). No information on amount of energy in energy terms. Accuracy: 1 Comparability over time: 1 10. Comparabilty over space: 1 SIRENE 7. Strength and weakness (at data level): Inofrmation on energy use. Only information at country level. 8. Reliability, accuracy, robustness, uncertainty (at data level):? 9. Overall scoring (give 1 to 3 points: 1=no major problems, 3=major reservations): 2 Relevancy: 2 Accuracy:? Comparability over time: 1 10. Comparabilty over space: 2 FSS/EUROFARM 7. Strength and weakness (at data level): Good representation. 8. Reliability, accuracy, robustness, uncertainty (at data level): 1 9. Overall scoring (give 1 to 3 points: 1=no major problems, 3=major reservations): 1 Relevancy: 1 Accuracy: 1 Comparability over time: 2 10. Comparabilty over space: 2 15