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BAB 031/19: Reports on and simulation of revenues and costs subject to changes in prices and quantities

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BAB 031/19: Reports on and simulation of revenues and costs subject to changes in prices and quantities

Created: 15 December 2020
Last Updated: 23 November 2022

BAB 031/19: Reports on and simulation of revenues and costs subject to changes in prices and quantities

Initial situation

In Austria there are currently market-based solutions (options, futures, other derivatives) for stabilising the producer prices of certain agricultural products. However, there are no market-based (e.g. insurance) or tax-based instruments to stabilise total agricultural income. Relevant information and data on agricultural markets are sometimes not available to farm managers, or are only available with difficulty or from different providers; this in turn increases their workload in the course of independent income stabilisation activities.

Objective

To provide digital information on developments in the agricultural sector in a collected, compact and user-friendly form in order to support farm managers in their individual income stabilisation measures. Such digital information offers can be price reports including price forecasts, an information platform or an application for the simulation of income/contribution margin fluctuations due to price and quantity fluctuations.

In 2019, the BMLRT has approved funding for the present project within the framework of a European Innovation Partnership for the period May 2019 to April 2022. The following are involved in the project:
LK OÖ Dienstleistungs GmbH, Chamber of Agriculture of Upper Austria (LK OÖ), Chamber of Agriculture of Lower Austria (LK NÖ), Austrian Chamber of Agriculture (LKÖ), Austrian Institute of Economic Research (WIFO), Beiselen Service GmbH, LBG Österreich GmbH Wirtschaftsprüfung & Steuerberatung, Federal Institute of Agricultural Economics and Mining Research (BAB) and farm managers.

With the start of the project in May 2019, the development of project basics (goals, tools, desired results) was started. In particular, a literature and data research was carried out and the need for information and possible digital information services were discussed with the involvement of farmers. The further work was organised in working groups (WG), which exchanged their problems and results. The WG Prices, headed by WIFO, is working on the topic of price reporting. The WG Simulation under the leadership of the BAB works on the further development of the IDB application (see project BAB 015/10 "Contribution margins and data basis for farm planning"): (a) the reprogramming of the existing production procedures is intended to improve the technical processes and increase the benefit for users and (b) the reprogramming of additional functions is also intended to increase the benefit for users. The further development of the IDB application concerns the areas of IDB-General, arable farming, fodder production, animal husbandry, permanent crops, crop rotation module. The work generally includes conception, programming/implementation, testing, revision, going live and documentation.

In 2020, work was started in the areas of IDB general and arable farming (conception, implementation) and initial considerations were made regarding the crop rotation module.

In 2021, programming and internal tests were carried out on the IDB database and on the areas of IDB general, arable farming and the crop rotation module. Tests with farm managers are planned before publication. Preparations for programming procedures for fodder production, animal husbandry and permanent crops have begun (programming templates, etc.).

The further development of the areas of fodder production, animal husbandry and permanent crops as well as further testing and the live activation of the new IDB application will take place in 2022.

Project start: May 2019
Project end: April 2022

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