Definition of Terms
Breeding Livestock Appreciation (BLSA) is that part of livestock valuation changes relating to the farm's breeding stock
Beef Special Premium (BSP) are payments under the Beef Special Premium scheme
Buildings : the valuation of buildings and works investments made within the last 10 years.
Disadvantaged Areas (DA) are those areas of Wales in which the lower rate of HLCA is paid
Finished lamb sales per ewe on some farms will include lambs from the previous year's lamb crop
FMD Livestock Compensation Compensation received for the slaughter of trading livestock and for the market value of breeding livestock. Such compensation payments are included in NFI.
FMD Exceptional items The difference between the actual compensation and the market value of breeding livestock. Exceptional items are excluded from NFI.
General farm costs include electricity, water and telephone charges, licences, insurances, subscriptions etc.
Grazing livestock units (GLU): grazing livestock are converted to common units based on estimated energy requirements in order to calculate the stocking rate on the farm
HLCA: Hill Livestock Compensatory Allowances payable on breeding beef cattle and sheep in Disadvantaged and Severely Disadvantaged Areas
Inputs include stock changes as well as purchases made during the year
Land : the valuation of land now includes the value of buildings and other major land-based investments made over 10 years ago.
Management and Investment Income is total farm enterprise output less total inputs (including the value of the labour input of the farmer and spouse). It represents the reward of the farmer's (and spouse's) management and interest on the tenant's capital employed on the farm.
Margin over concentrates is the difference between milk sales and the value of purchased and home-grown concentrates used for the dairy herd
Miscellaneous output includes contract work, farm cottage rents and profit on resale of purchased agricultural produce
Net farm income is calculated as if all farms were tenanted. It represents the return to the farmer and spouse for their labour and management, and on the tenant-type capital of the business
Net milk quota comprises quota compensation payments, payments for quota leased in and leased out, and super levy payments
Notional Cash Income is largely based on actual receipts and actual expenditure. However, some items, auch as livestock subsidies, are recorded on an "as due" rather than an "as received" basis. Notional cash income represents the difference between receipts and expenditure on current account, before depreciation charges and investment spending
Occupier's net income is based on actual tenure and indebtedness. It represents the return to the farmer and spouse for their labour, management and investment in the farm business
Other crop costs include crop protection chemicals and other costs incurred specifically for crop enterprises and forage
Other livestock costs include purchased bedding materials, and other costs incurred specifically for livestock enterprises
Outputs include valuation changes and any produce given to workers and consumed or used on the farm. Outputs of livestock are given net of any purchases made. Other cattle and sheep outputs include payments for quota leased in and leased out
Owner equity is net worth expressed as a percentage of total assets
Paid labour costs include cash wages and salaries, other employer's expenses, and the value of perquisites
Quotas include the capital value of milk production quotas and of suckler cow premium and sheep annual premium quotas
Return on tenant's capital is management and investment income expressed as a percentage of total tenant's capital
Severely Disadvantaged Areas (SDA) are those areas of Wales in which the higher rate of HLCA is paid
SAP: payments under the Sheep Annual Premium scheme
SCP: payments under the Suckler Cow Premium scheme
Unpaid labour is valued at commercial wage rates. Labour paid at less than commercial rates is treated as unpaid and valued at commercial rates
Valuation changes are those attributable to trading livestock, crops and stores