Environmental Engineering Reference
In-Depth Information
Approach for Testing Hypotheses
For testing the hypotheses, we have to decide how to measure farming intensity and
to design a typology of urban and rural regions, a typology of regions based on the
share of agricultural employment and a typology of LFA and non-LFA regions.
These issues are discussed below.
Measurement of Farming Intensity
In this analysis, farming intensity is interpreted as total agricultural output per
hectare in euro. By doing so, we follow the SEAMLESS farm typology. Total
agricultural output (FADN code: SE131) is defined as total output of crops and crop
products, livestock and livestock products and of other output.
1
It includes also sales
and use of (crop and livestock) products and livestock, change in stocks of (crop and
livestock) products, and change in valuation of livestock (EC
2007)
. In order to
determine faming intensity of a region, we divide the total agricultural output of all
farms in a region by the total number of hectares of utilized agricultural area in the
region. Data are derived from the Farm Accountancy Data Network (FADN). Farming
intensity is measured in 2 years: 1990 and 2003. We use data in current euros, which
implies that absolute values cannot be compared between both years. However, the
data enable us to explore whether relative differences in farming intensity between
urban and rural regions tend to increase or decrease in the course of the years.
We restrict our analysis to the EU15 Member States, as these are the only countries
for which there is data available in FADN for 1990 and 2003. For 1990 there is,
however, no information in FADN for Eastern Germany, Austria, Finland and Sweden.
A main question in the analysis of socio-economic indicators across EU regions
refers to the benchmark: have values to be compared with the EU average or with
the national average? The answer depends on whether the indicator is independent
or dependent on national specific factors. In the case of farming intensity, large
differences in output per hectare exists among Member States, reflecting national
differences in the composition of agricultural production and in the use of biological
and chemical technology. Therefore, we will compare the value of the regional
farming intensity with the national average.
Typology of Rural and Urban Regions
The OECD (Organisation for Economic Co-operation and Development) rural
typology of predominantly rural, intermediate rural and predominantly urban
1
Leased land ready for sowing, receipts from occasional letting of fodder areas, agistment, forestry
products, contract work for others, hiring out of equipment, etc. (FADN code SE256).