Standard contribution margin
Standard contribution margin is a term from the classification system for agricultural holdings in the European Community . Its definition can be found in Article 1 of Commission Decision 78/463 .
definition
According to Article 1, letter d) of Commission Decision 78/463, the standard profit margin "is the difference between the standard production value and the standard amount of certain special costs. This difference is specified for each region and determined for each branch of the farm; for vegetable branches it is per hectare agricultural area, applied to the animal per head of cattle. "
Explanation
Since it is an economic quantity, the standard contribution margin is expressed in euros . Before the euro was introduced, the unit of measurement " European units of account " was used.
The standard contribution margin is the basis for determining the " economic orientation " and the " economic size of the company " (both are terms that are also defined in Article 1 of the above decision). The business orientation describes the specialization of an agricultural enterprise. The economic size of the company is expressed in European size units . Agricultural businesses can be divided into classes. The aim of the classification is to be able to compare farms regardless of their geographical location or area. To achieve this goal, different standard contribution margins are assigned to individual geographic regions and the standard contribution margins must be adjusted over time. The division into regions is very different within the European Union. Germany is divided into over 30 regions. Other countries in the European Union count as 1 region.
Note on Eurostat
The abbreviation SGM appears in Eurostat's statistics . This stands for Standard Gross Margin . In Eurostat's Concepts and Definitions Database (CODED) , SGM is translated with SDB (standard contribution margin) . However, since it is listed in the tables in ESU (European Size Units) and not in EUR (Euro), the designation economic company size would be more appropriate.
Individual evidence
- ↑ a b c d 78/463 / EEC: Decision of the Commission of April 7, 1978 on the creation of a community classification system for agricultural holdings