what information is needed? farm income only a partial view of overall household income. panel...

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What information is needed? Farm income only a partial view of overall household income. Panel Data Cross-sectional periods Number of time periods Smoothes out farm income fluctuations Shift away from commodity production as household unit Why is this information important? Statistics can be used as policy management tools To assess how other policies apart from agricultural ones are affecting these households

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Page 1: What information is needed?  Farm income only a partial view of overall household income.  Panel Data  Cross-sectional periods  Number of time periods

What information is needed?

Farm income only a partial view of overall household income.

Panel Data Cross-sectional periods Number of time periods Smoothes out farm income fluctuations

Shift away from commodity production as household unit

Why is this information important? Statistics can be used as policy management tools To assess how other policies apart from agricultural ones are affecting these households

Page 2: What information is needed?  Farm income only a partial view of overall household income.  Panel Data  Cross-sectional periods  Number of time periods

What information is available?

Macroeconomic -V- Microeconomic

Farm Accountancy Data Network (FADN) Off-farm / Non-farm income is often missing

Agricultural Resource Management Study (ARMS) Small farmers & those with off farm-income regularly excluded No panel data → limitation

Difficult to compare the total income of farm households against ‘other’ households even on an aggregate level.

Tax incentives and cut backs in the agricultural sector make it inaccurate to use tax files and other related data as a source of information.

Page 3: What information is needed?  Farm income only a partial view of overall household income.  Panel Data  Cross-sectional periods  Number of time periods

What are the obstacles to obtaining and using the desired information?

Three obstacles 1. Administrative

Miscommunication between ministries and statistical agencies. Costs (particularly in the case of new surveys) Frequency Legal / confidentiality difficulties preventing the merging of data.

2. Technical False representation on surveys due to small number of farms. Wealth information even with International Financial Reporting Standards.

3. Political Disagreement on content of surveys leads to void or false responses. Hence

affecting the rate and quality of responses.

Page 4: What information is needed?  Farm income only a partial view of overall household income.  Panel Data  Cross-sectional periods  Number of time periods

How can these obstacles be overcome?

Legal obligations have been implemented by government audit offices.

Changes in policy prompt changes in data collection systems.

Reduce data collection costs. Eg Telephone & Internet surveys

Cost - Benefit would improve if surveys covered a broader scope.

Pressure put on political figures who influence policy and funding decisions.

Improved communication all parties involved

Page 5: What information is needed?  Farm income only a partial view of overall household income.  Panel Data  Cross-sectional periods  Number of time periods

How would such information help policy makers?

To assess the nature, cause and extent of income problems.

To define policy objectives with measurable targets.

Design new programmes for anticipated income problems.

Improve current programmes.

Compare alternative options.

Page 6: What information is needed?  Farm income only a partial view of overall household income.  Panel Data  Cross-sectional periods  Number of time periods

Conclusion

Public accountability needs to be reviewed at a national and international level.

Process of improvement is long term, the sooner work on improvements begins the sooner things will get better.

Co-operation between countries needed to move forward. Inter-Secretariat Working Group on Agricultural Statistics (IWG-AGRI)

Main burden of improvements still lies on the shoulders of national Governments.