Standard gross margin

Standard gross margin is a term from the classification system of agricultural holdings in the European Community. Its definition can be found in Article 1 of Decision 78/463 of the Commission.

Definition

According to Article 1, letter d ) of decision 78/463 of the Commission is of the standard gross margin, " the difference between the standard production value and the standard amount of certain specific costs This difference is indicated for each region and determined for each line of business, . During the plant operation branches it is fixed per hectare agricultural area, applied to the animal per head of cattle. "

Explanation

Since it is an economic entity of the standard gross margin in euros is expressed. Before the introduction of the euro for the unit was " European units of account " used.

The standard gross margin is the basis for determining the " business orientation " and the " economic size " (both are terms that are also defined in Article 1 above decision). The type of farming describes the specialization of farms. The economic size is expressed in European size units. Agricultural operations can thus be divided into classes. The aim of the classification is to be able to compare farms regardless of their geographical location or their surface. To achieve this goal, one has different geographical regions different default margins on it and have the standard gross margins to be adjusted over time. The division into regions is very different within the European Union. Germany is divided into 30 regions. Other countries of the European Union are considered as one region.

Note to Eurostat

In the Eurostat statistics the abbreviation SGM appears. This stands for Standard Gross Margin. In the Concepts and Definitions Database (CODED) by Eurostat SGM is translated with SDB ( SGM ). Because it is listed in the tables but in the unit ESU (European Size Units ) and not in EUR ( € ), the term economic size would be more appropriate.