Results of the economic assessment

European sector level summary results provided an overview of typical characteristics of varying systems within each farm type and due to the large sample sizes statistical analysis was more likely to identify differences, but variability within the sample was extremely high, combined with effects of climatic and political differences.

Fieldcropping holdings

The results indicated that thee FI holdings were less productive, this may result in lower profitability. At European level the largest sample size of SC holdings had high cropping productivity, high profitability, but also high levels of external inputs and lower cropping diversity, whilst the SI holdings achieved the lowest profitability as a result of lower productivity combined with relatively high input costs. . Figure 1 summarises the relative performance of varying Fieldcropping farm systems across four key indicators, highlighting that whilst FI systems had lower profitability and higher labour requirements than specialist farms, crop diversity was greater and FI farms had lower inputs.

Horticulture & Permanent Cropping holdings

The European results highlighted the intensive nature of the SC holdings compared to the mixed systems, with very high output per hectare as a result of high labour and cropping inputs; however environmental indicators reflect the high intensity and lack of cropping diversity. The mixed farm systems were generally similar in performance, but the MO farms were usually more intensive and profitable than the integrated systems. There was little difference between the SI and FI holdings with similar output, inputs and profitability, though cropping diversity was high on FI holdings at European level. Figure 2 displays the relative performance of varying Horticulture & Permanent Cropping farm systems across four key indicators and highlights that whilst profitability was lower on integrated holdings, cropping diversity was higher, external inputs and labour requirements were both lower.

Dairy holdings

The results highlighted the intensive, high input and high output strategy of FC and MO holdings, compared to the lower input levels of SG and integrated holdings. Output as well as feed costs and external input use were significantly lower on the FI farms, but profitability was also much lower at European and national analysis levels, except for mid-Sweden where there was no statistical difference in profitability. The environmental indicators highlighted the high inputs required within the SG and FC dairy systems, as well as the high level of cropping diversity and lower stocking rates of FI systems, though subsidy payments were usually lowest for the FI group. Figure 3 displays the relative performance of varying Dairy farm systems across four key indicators, highlighting a significant gain in cropping diversity and reduced external inputs as farms become more integrated, though profitability also declines.

Beef & Small ruminant holdings

The European and national level results demonstrated the profitable strategy of MO holdings, compared to the lower input levels of SG and FI holdings, though regional analysis in central France highlighted almost identical profitability across five differing production systems. Although generally less profitable, the SG and FI systems appear to offer environmental benefits of lower inputs; and for the FI holdings high crop diversity. However, public support through subsidy payments was lower on the integrated systems than the more intensive, despite the lower intensity of farming identified through use of the IRENA intensity indicator. Figure 4 displays the relative performance of varying Beef & Small ruminant farm systems across four key indicators, highlighting a large gain in cropping diversity and reduced external inputs as farms become more integrated, though profitability declines and labour inputs were greater on FI holdings.

Pig & Poultry holdings

The results varied between EU and national figures but in general the more intensive holdings achieved higher profitability than the other systems, with large differences in the output and inputs across farm systems. The extremely high levels of external inputs required to sustain output were apparent in SG, FC and MO systems, with the European median input expenditure for FC holdings in excess of €10,000/ha. The high input levels were combined with low cropping diversity and very high stocking rates, all potentially causing environmental damage, as well as the exposure of these systems to input and output price volatility. The lower input FI farms achieved higher environmental indicator outcomes but achieved the lowest profitability in the EU results, though within the central French sample there was no significant difference between the profitability of different systems, despite FI farms having the lowest value. Figure 5 displays the relative performance of varying Pig & Poultry farm systems across four key indicators and highlights the high cropping diversity, reduced labour intensity and lower external input levels of the integrated systems, but also much lower profitability.