Economic Impact Assessment
AgBalance® considers economic accounts of revenues and expenses. Therefore, the economic analysis is focused on the selling price of the agricultural product and subsidies as an income and the variable and fixed costs of the agricultural system (Schöneboom, Saling, & Gipmans, 2012)1.
The basis for the economic assessment are
Based on the collected data, the following indicators can be evaluated:
Depending on the goal and scope of the study, only one of these indicators is chosen for the aggregation of the results to avoid double-counting of data. Usually, profit is selected as the economic indicator in most of the cases, as it gives a comprehensive indication of the economic performance of the farm for the analyzed crop.
1 Schöneboom, J., Saling, P., & Gipmans, M. (2012). AgBalance™ Technical Background Paper. Ludwigshafen: AgBalance™ Team at BASF SE