BASIC AND PRODUSER PRICES IMPACT INCOME FROM AGRICULTURAL ACTIVITY IN EUROPEAN

Abstract

This study examines the pattern of income form agricultural activity in European countries, which consists of 31 (thirty one) countries, by looking at the patterns of income for the last 4 (four) years, since 2016 until 2019. This type of research is causality research. With the influencing variables are crop output, animal output, output of the agricultural industry, and gross value added at basic prices. Livestock production is valued at basic prices. The base price is the price received by the manufacturer after deducting all taxes on products but including all subsidies on products. The concept of output includes sales, stock changes, and products used for processing and own final use by producers. Plant production is valued at basic prices. The base price is the price received by the manufacturer after deducting all taxes on products but including all subsidies on products. The concept of output covers sales, stock changes and plant products used as animal feed, processing and own final use by producers. Existing variables will be processed using the WarpPLS statistical tool.

The results show that not all affect the income form agricultural activity.