System of Environmental-Economic Accounting for

Agriculture, Forestry and Fisheries (SEEA AFF)

Draft for global consultation

Food and Agricultural Organization of the United Nations

United Nations Statistical Division

November 2014

SEEA Agriculture, Forestry and Fisheries

Table of contents
Chapter 1: Introduction
1.1 What is the System of Environmental-Economic Accounting for Agriculture,
Forestry and Fisheries (SEEA AFF)
1.2 The scope and approach of SEEA AFF
1.3 Background to the development of the SEEA AFF
1.4 Implementation of SEEA AFF
1.5 Structure of SEEA AFF
Chapter 2: Applications and uses of SEEA AFF
2.1 Introduction
2.2 Primary ways of applying of the SEEA AFF framework
2.3 Applications of SEEA AFF to policy
Chapter 3: The conceptual framework of the SEEA AFF
3.1 Introduction
3.2 Basic national accounting principles
3.3 SEEA AFF Base accounts
3.4 Specific accounting issues
3.5 SEEA AFF Combined presentations
3.6 Aggregates and agri-environmental indicators
Chapter 4: Definitions and methods for SEEA AFF Base accounts
4.1 Introduction
4.2 Physical flow account for Food crops
4.3 Physical flow account for Non-food crops
4.4 Physical flow accounts for Livestock products
4.5 Asset accounts for livestock
4.6 Physical flow accounts for timber products
4.7 Asset accounts for forests and timber resources
4.8 Physical flow account for fish and other aquatic products
4.9 Asset account for fish and other aquatic resources
4.10 Accounts for stocks and flows of water resources
4.11 Physical flow accounts for energy
4.12 Physical flow account for greenhouse gas emissions
4.13 Physical flow accounts for fertilizers and pesticides
4.14 Asset accounts for land
4.15 Accounting for soil resources
4.16 Base accounts for economic data for SEEA AFF
Chapter 5: Overview of implementation and compilation of SEEA AFF

Chapter 1: Introduction
1.1 What is the System of Environmental-Economic Accounting for Agriculture,
Forestry and Fisheries?
1. The System of Environmental-Economic Accounting for Agriculture, Forestry and
Fisheries (SEEA AFF) is a statistical framework for the organization of data that
permits the description and analysis of the relationship between the environment and
the economic activities of agriculture, forestry and fisheries. These primary activities
are dependent upon the environment and the resources and services it provides and, at
the same time, have impacts on the local and surrounding environment.
2. Understanding the relationship between these activities and the environment supports
a broader knowledge of the nature and impact of the production of agricultural,
forestry and fisheries products, and provides information for the analysis of food
security; environmental condition and sustainability of food, fibre and material
production; and issues related to rural incomes and employment.
3. Further, the integration of information on these three activities recognizes the need to
consider the intersections between the often separately considered objectives of each
of the activities and the related environmental factors. The broadening dialogue
concerning the water / climate / food / energy nexus, particularly in the context of the
post-2015 development agenda reflects the increasing importance of understanding
inter-linkages and trade-offs. The SEEA AFF aims to assist in better understanding
such issues.
4. The framework outlined by SEEA AFF is designed to be applicable across all
countries, regardless of their level of economic or statistical development, their
economic structure or the composition of their environment. At the same time, since
the nature and structure of agricultural activities varies considerably across countries,
the precise structure of some SEEA AFF accounts is likely to vary across countries
and should take into account those activities and products of most importance.
5. The SEEA AFF is also relevant to a wide range of readers including both users of
information and compilers of statistics and accounts. Although written from the
perspective of national accounting, it aims to describe a framework in a manner that
highlights the connections between the compilation of underlying statistics, the
organization of those statistics via an accounting framework, and the use the
information for analysis and policy. It is thus intended to complement both guidance
on statistical collection and the development of analytical and decision making tools.
6. As explained in various places through the SEEA AFF, the basic framework may be
extended in a variety of ways. Over time, it is hoped that extensions and refinements
will be undertaken that add to the depth of the SEEA AFF as described at this point in
time. In this sense, the SEEA AFF provides a starting point or platform for the
incorporation of an accounting approach to the integration and use of agricultural,
forestry and fisheries data across the economic and environmental domains.
7. From a data perspective, the information in the SEEA AFF framework should sit
within a broader national statistical system whereby various data from various
agencies are increasingly harmonized and aligned. These data should include
traditional survey and census based information, as well as data from administrative
sources and increasingly data from geospatial information systems. The SEEA AFF
can provide one tool to support the process of harmonization and alignment.

1.1.1 Connections to the SEEA Central Framework

8. The SEEA AFF applies the environmental-economic structures and principles
described in the System of Environmental-Economic Accounting 2012 Central
Framework (SEEA Central Framework). The SEEA Central Framework was adopted
as an international statistical standard by the United Nations Statistical Commission
in 2012 and was jointly published by the United Nations, the European Commission,
the FAO, the IMF, the OECD and the World Bank in 2014 (UN, et. al. 2014).
9. Broadly speaking, the SEEA Central Framework provides the framework to account
for (a) physical flows of various natural inputs, products and residuals (e.g. water,
energy, emissions, waste); (b) stocks and changes in stocks of individual
environmental assets (e.g. timber resources, fish resources, water resources, soil
resources, land); and (c) economic transactions that can be considered
environmentally related (e.g. environmental taxes, subsidies and similar transfers,
environmental protection expenditure, production of environmental goods and
services). Information on each of these types of flows, assets and transactions is
organized following standard national accounting principles and following the
classifications and definitions used in the national accounts and economic statistics
more generally.
10. The SEEA Central Framework focuses on accounting at an economy-wide, national
level. The SEEA AFF, on the other hand, describes the way in which additional
information pertaining to agricultural activities can be integrated within the general
SEEA framework and encourages the development of accounting tables for the range
of stocks and flows that are relevant.
11. By considering the environmental-economic accounting tables of the SEEA Central
Framework from the perspective of specific economic activities, SEEA AFF
demonstrates not only the usefulness of accounting for individual stocks and flows
but also the potential to use accounting frameworks to integrate information across
data domains to support a broader range of analysis.
12. The SEEA AFF is intended to complement the accounting structures and principles of
the SEEA Central Framework. Hence any work on accounting for individual stocks
and flows, for example in physical supply and use tables for water or land use asset
accounts, can be directly utilized in developing a set of SEEA AFF accounts.
Conversely, work undertaken to implement SEEA AFF accounts will support broader
efforts to implement the SEEA Central Framework at national level.

1.2 The scope and approach of SEEA AFF

1.2.1 Summary
13. The scope of the SEEA AFF covers agricultural, forestry and fisheries activities. The
purpose of this broad coverage is to facilitate understanding and analysis of the tradeoffs and dependencies between these activities that should be considered as part of
national and local level planning. Often, the available information sets for each of
these activities are developed independently. Consequently comparison of the
activities may not be undertaken or management of the relevant resources may not
fully consider relevant alternatives.
14. In this broad agricultural context, the design logic of the SEEA AFF involves three
stages. First, SEEA AFF base accounts are designed which bring data from ten
primary data domains (see Table 1.1) into an accounting structure where the structure
reflects the SEEA Central Framework and standard accounting approaches. It is in
this first stage that the basic accounting identities (see Section 3.2) are applied and the
benefits of applying an accounting approach are gained in terms of ensuring data

coherence and consistency. The SEEA AFF base accounts are described in detail in
Chapter 4.
Table 1.1 Data domains of the SEEA AFF
1. Agricultural production
2. Forestry
3. Fisheries
4. Water resources
5. Energy
6 Greenhouse Gas (GHG) emissions
7. Fertilizers and pesticides
8. Land use and land cover
9. Soil resources
10. Economic data

15. Second, using information from the base accounts, data for selected variables are
brought together into combined presentations. Combined presentations may take
many forms since they do not need to conform to strict accounting identities and
rather should organize information relevant for discussion of a particular question or
policy theme. Nonetheless, as described in Chapter 3, SEEA AFF combined
presentations should consider information from across the three broad economic
activities agriculture, forestry and fisheries and from all data domains.
16. Third, using information from the combined presentations, indicators can be
produced to show trends in the relationship between agricultural, forestry and
fisheries activities and the environment. A particular focus of these indicators should
be the intensity of the use of environmental assets and environmental flows relative to
production. For example, it should be possible to develop indicators that describe the
changing intensity of key commodities with respect to their underlying use of land,
water, energy and fertilizers and their generation of greenhouse gas (GHG) emissions.
17. A particular feature of the SEEA AFF approach is that within the broad activities of
agriculture, forestry and fisheries one focus is to structure information according to
key or most important products. Thus, in addition to grouping information according
to more generic activities such as cropping or livestock rearing, the intent is to
articulate a relatively comprehensive set of economic and environmental inputs for
the production of individual commodities such as wheat, rice, beef, timber and
specific species of fish.
18. By providing a framework for integrating more macro level information with specific
commodity level information it is anticipated that a more constructive understanding
of the drivers for macro levels trends can be developed and a link to policy responses
can be more effectively developed. For example, measuring production and
associated environmental trends at the level of cropping, livestock, or fisheries does
not provide a clear sense of what type of crops or animals or what types of production
approach are being used. It is only by understanding the main contributors to
production patterns and environmental trends that policy responses can focus
appropriately.
19. Further, in using a key product approach the SEEA AFF aims to support more
directly the analysis of agricultural economists, ecologists and others which, at

country level, will tend to focus on individual products that are significant in terms of
their contribution to overall agricultural production, exports, food supply or in
relation to environmental constraints such as land or water. It is further noted that the
structure of individual product production functions (i.e. functions describing the
relationships between inputs and outputs) are likely to vary considerably by product
type particularly in relation to environmental inputs (such as water).
20. While a key product approach is an important perspective, it is also necessary to
maintain a connection with broader aggregations, for example at the level of cropping
activity. This is because there are likely to be linkages between commodity types and
other more general pressures and constraints such as the availability of water and
land - that need to be assessed.
21. Within agriculture, in concept it would be possible to extend the structure of SEEA
AFF to a finer than product level and articulate production functions for different
approaches to the production of specific products. For example, distinguishing
between intensive and extensive production of livestock. In general this extension is
not described in the SEEA AFF base accounts and combined presentations, with the
exception of the distinction between capture fisheries and aquaculture.
22. Although the SEEA AFF targets a relatively fine level of detail, the approach taken
ensures a connection to the organization of information at the macro industry and
economy wide level. In large part the approach taken is to organize macro level data
from the standard national accounts and other national level datasets and seek to
integrate micro level perspectives. For example, using aggregate measures of the
supply and use of fertilizers (including measures of production, imports and exports)
as a starting point for the derivation of measures of fertilizer use for key products
such as rice or wheat.
23. This approach should allow the important relationships established at the micro level
to be appropriately scaled and their relative importance established. In effect, SEEA
AFF aims to mainstream more detailed economic and scientific research on
agricultural, forestry and fisheries production.
24. At this stage, the SEEA AFF framework has been designed to cater for national level
analysis of agricultural, forestry and fisheries activities and products. Working at this
level enables a more direct mainstreaming of environmental information into standard
economic assessments of these activities and provides the broadest framing of
information. At the same time, it is possible to develop extensions of the framework
to the sub-national level across the various data domains. Such extensions may be
relevant for particular policy issues, for example water use in specific catchment
areas.
25. An important theme through the SEEA AFF is working from the outside in. The
logic is that by starting from a national and broad activity perspective across the set of
data domains it is possible to progressively allocate and partition the data using a
variety of data and indicators such that product level information can be placed within
a broader context. This approach is also known as multi-level analysis. The example
above of the integration of fertilizer data from the national accounts and in relation to
key products is relevant in this context.
26. By placing product level information in a broader context the SEEA AFF moves
beyond measurement of the environmental-economic relationship that may be
reflected in specific studies of, for example, wheat production in temperate
agricultural zones. While such studies (which may be economic or ecological in
focus) are likely to be very useful, they can be challenging to scale upwards to enable
integrated analysis in the context of other economic activities.

1.2.2 Potential extensions of the SEEA AFF approach

27. The design of the SEEA AFF shows the potential to organize information that can
assist the analysis of the relationship between the environment and the economy for
agricultural activities. At the same time, it is worth noting a number of directions in
which the SEEA AFF framework might be extended.
28. First, in line with the discussion in the SEEA 2012 Experimental Ecosystem
Accounting, it would be possible to extend the articulation of the production
functions for individual agricultural products to include inputs of ecosystem services.
In the context of agricultural production, ecosystem services are the contributions
made by the ecosystem to the production of agricultural products such as crops,
livestock, timber, fish, etc. Examples of ecosystem services include pollination, soil
retention, water provisioning, and nutrient flows. The relevant set of ecosystem
services will vary for different agricultural products and for different production
processes.
29. Such an extension to ecosystem accounting would consider the range of ecosystem
services, the capacity of agricultural and surrounding ecosystems to continue to
provide those services in a sustainable manner, and the potential for substitution and
trade off between ecosystem services and produced goods and services (for example
by using cultivated bees rather than natural pollinators).
30. In assessing the capacity of ecosystems and important aspect is the measurement of
ecosystem condition i.e. the state of an ecosystem and how it is changing over time.
While techniques to measure ecosystem condition on a comparable basis at national
level are still developing, the general approach is to assess various characteristics of
ecosystems since the direct measurement of ecosystems is not possible. Relevant
characteristics will include factors such as water resources, soil type, climate and
biodiversity.
31. An important aspect of ecosystem accounting is its use of a spatially explicit
approach to measurement and hence its integration of increasingly available geospatial data, including for example remote sensing data.
32. While conceptually an extension of SEEA AFF to incorporate ecosystem accounting
is possible, there remains important research and testing to be undertaken before a
more definitive ecosystem accounting approach can be outlined. Such research and
testing is underway and significant advances are expected in the short to medium
term.
33. Second, the SEEA AFF might be extended to incorporate accounting for economic
transactions related to agricultural activities that are considered to be
environmentally related. Examples of such economic transactions include
environmental protection expenditure by economic units involved in agricultural
activities (agricultural units); environmental taxes and subsidies payable and
receivable by agricultural units; and rents payable by agricultural units including
payments for the use of land, payments for access to forest reserves (for example
through stumpage fees), and payments in relation to fisheries quotas.
34. Since these are all standard economic transactions, the general accounting treatment
of all of these transactions is outlined in the international standard for national
accounts the System of National Accounts 2008 (SNA 2008). Further, the SEEA
Central Framework provides additional guidance on identifying environmentally
related transactions. Given these two primary conceptual sources, there is little
additional guidance that might be provided in the SEEA AFF aside from noting the
potential to identify those transactions relevant to agricultural, forestry and fisheries
activities. As appropriate, such information may be drawn into combined
presentations, but this potential is not elaborated in SEEA AFF.

35. Third, the SEEA AFF might be extended to integrate social information. Some social
information has been incorporated in the SEEA AFF such as food consumption and
nutrition and employment. However, extensions might be made to issues of rural
incomes and poverty, access to water and energy in rural areas, age and gender that
are of ongoing policy interest from an overall sustainable development perspective.
This extension would require further discussion and co-ordination with related
projects.

1.3 Background to the development of the SEEA AFF

1.3.1 Process for the development of SEEA AFF
36. The SEEA AFF has been developed within the broader body of work on the SEEA
for the establishment of international statistical standards for environmentaleconomic accounting. In 2007 the United Nations Statistical Commission agreed, at
its thirty-eighth session, to start a revision process to advance previous work on the
SEEA namely the 1993 SEEA and the SEEA-2003. This process was managed under
the auspices of the newly formed United Nations Committee of Experts on
Environmental-Economic Accounting (UNCEEA).
37. Since 2007 the UNCEEA has managed the development of a range of environmentaleconomic accounting documents. Primary among them has been the SEEA 2012
Central Framework which was adopted as an international standard in 2012 by the
Statistical Commission at its forty-third session.
38. Following a range of discussions, at its 2012 meeting, the UNCEEA endorsed the
FAO led plan to develop a SEEA for Agriculture, Forestry and Fisheries. The work
on SEEA AFF commenced in June 2013 with resourcing for the project from the
FAO led Global Strategy to Improve Agricultural and Rural Statistics.
39. As the SEEA AFF sits within the broader SEEA family it has direct connection to the
more general, economy wide SEEA Central Framework and also to the international
standards for national accounts, the System of National Accounts 2008. At the same
time, the SEEA AFF builds on earlier work on environmental-economic accounting
for agriculture, forestry and fisheries most notably work by the FAO and Eurostat on
Economic Accounts for Agriculture, work led by FAO on Integrated Environmental
and Economic Accounting for Fisheries (SEEA Fisheries, 2004) and work by
Eurostat on The European Framework for Integrated Environmental and Economic
Accounting for Forests (IEEAF, 2002).
1.3.2 Related statistical documents and initiatives
40. The contributions of these earlier, activity specific, documents were important to the
development of the SEEA Central Framework, particularly with respect to the
development of standards for accounting for timber and aquatic resources. The SEEA
AFF goes beyond the activity specific perspective and provides a cross-activity
framework for the integration of information. In doing so it covers a wider range of
data domains than envisaged in any of those documents.
41. Another important document is the System of Economic Accounts for Agriculture
(SEAFA) developed by the FAO in 1996 building on initial work on a Handbook for
Economic Accounts for Agriculture (EAA) released in 1974. A number of the
motivations for the SEAFA work are the same as for SEEA AFF and there are
distinct overlaps in terms of the types of economic and production data described in
both systems.

42. The differences between SEEA AFF and SEAFA lie in three main areas. First, the
SEEA AFF incorporates to a far greater extent physical data on economic and
environmental domains reflecting the development since 1996 of the physical
accounting aspects of the broader SEEA framework. Second, the SEEA AFF
incorporates environmental and natural resource considerations far more extensively,
thus supporting analysis of the sustainability of agricultural, forestry and fisheries
production and consumption. Third, the SEAFA describes in detail the connections
between agricultural, forestry and fisheries activity and related income allocations
across economic sectors such as households. Since both approaches are based in the
System of National Accounts, it is quite straightforward to reconcile the frameworks
and the differences should be interpreted largely in terms of changes in the focus of
analysis and policy over the past 20 years.
43. In covering so many data domains (see Table 1.1) the SEEA AFF has potential links
to many initiatives. In practice these links need to be more fully elaborated and
explored. SEEA AFF thus may represent an important catalyst for discussion on
integration of these different projects. This sub-section highlights some of the
statistical initiatives that are connected to the development of SEEA AFF at the
country level.
Implementation of the Global Strategy to Improve Agricultural and Rural Statistics
44. The Global Strategy to Improve Agricultural and Rural Statistics (GS) is an ongoing
statistical initiative commenced in 2011 in response to rising concerns about the
quantity and quality of agricultural statistics for many countries of the world. These
concerns reflected the understanding that there are important connections between
improved information, improved agricultural performance and improved standards of
living for millions of people living in poverty, often in rural areas.
45. The main focus of the work of the GS is the development and implementation of
techniques and approaches to the collection and use of relevant statistics. The SEEA
AFF thus sits at one edge within the broader development of agricultural statistics. In
many ways there should be close complementarity between work to improve the
coverage and quality of agricultural statistics and implementation of SEEA AFF.
Implementation of the GS should provide more and better data and the SEEA AFF
should provide a framework to consider the integration of various data sources and
toe assess data gaps.
46. Of particular relevance in this regard is the intention in the GS to develop a master
sampling frame which would form the basis for the collection of agricultural
statistics within a country. The development of co-ordinated collection approaches in
this way should support work to implement SEEA AFF.
47. There is a range of other statistical activities underway within the FAO that are also
of relevance and should support implementation of the SEEA AFF. These include
work on improving statistics for forestry and fisheries, work to measure agricultural
greenhouse gas emissions for all countries, work on measurement of land cover and
the Global Agro-Ecological Zones database, and the development of methods and
guidance for the compilation of food balance sheets and estimates of the cost of
production.
Implementation of the SEEA and SNA
48. The adoption of the SEEA Central Framework as an international statistical standard
in 2012 places an expectation that countries will endeavor as resources and capacity
allows, to implement the standard. Simultaneously it places a requirement on the

international statistical community to support the implementation of the SEEA

Central Framework in countries. An implementation strategy for the SEEA Central
Framework was endorsed by the United Nations Statistical Commission in 2013 and
work continues to give effect to that strategy.
49. Given that the SEEA AFF represents the application of SEEA Central Framework
structures and accounts to agricultural, forestry and fisheries activities there should be
strong synergies between any implementation programs. Indeed, the SEEA AFF may
provide a useful catalyst to implementation more broadly given its direct connections
to many critical policy issues for many countries.
50. Similar implementation strategies exist or are being developed for other SEEA
components such as SEEA Water and SEEA Energy. The recent legislation in the
European Union requiring the development of six SEEA based accounts has also
generated a range of guidance and training materials to support implementation at
country level.
51. Since the SEEA AFF focuses on a specific set of economic activities, rather than
focusing on specific environmental stocks or flows, there are also strong connections
to the implementation of the 2008 SNA at national level. This is particularly the case
for those countries where agriculture, forestry and fisheries constitutes a large share
of GDP (e.g. >15%). The implementation of SEEA AFF should directly improve the
estimates of value added for the industries concerned. Thus, any work underway on
SNA improvement should be considered in the light of the SEEA AFF material.
Implementation of ecosystem accounting
52. An emerging area of accounting is ecosystem accounting. A description of the
approach is provided in SEEA 2012 Experimental Ecosystem Accounting. The focus
of ecosystem accounting is on the state and changing state of ecosystems (considered
to be assets) and the associated flows from ecosystem known as ecosystem services.
Given the direct link between agricultural, forestry and fisheries activities and
ecosystems the development of ecosystem accounting is of direct relevance.
53. At this stage the SEEA AFF does not extend to consider ecosystem assets or
ecosystem services. At the same time, as testing and development of ecosystem
accounting advances, the information in the SEEA AFF will prove of direct relevance
in estimating various components of the ecosystem accounting framework. This is
particularly the case with measurement of forests, fisheries, soil resources, water
resources and production/extraction activity.
Connections to other measurement activities
54. Alongside the initiatives described above which have direct connections to the
implementation of the SEEA AFF, there are other activities underway to improve the
quality of statistics. These include Paris 21, the implementation of the Framework for
the Development of Environment Statistics (FDES) and, more generally, the process
current underway to define and measure indicators as part of the Post-2015
development agenda. Depending on activities underway in a specific country,
coordination with these other activities may be desirable.
55. In addition, as described in more detail in Chapter 2, there are a number of global
indicator initiatives to which the framework described in SEEA AFF is of relevance.
Primary among these is the discussion of the post-2015 development agenda and the
articulation of a set of sustainable development goals (SDGs). A number of the
proposed SDGs have close links to agricultural, forestry and fisheries activities and

10

hence the development of indicators for the SDGs and related targets may be able to
be linked explicitly to the concepts and structures of the SEEA AFF.

1.4 Implementation of SEEA AFF

56. The SEEA AFF describes a framework for the organization and integration of
information from multiple domains. Through careful design and using the accounting
principles from the SEEA Central Framework and the SNA 2008, the SEEA AFF
provides a structure within which compilation exercises may be undertaken.
57. As for the SEEA Central Framework, it is not expected that countries would be able
to implement all aspects of the SEEA AFF in a single step. Rather a flexible and
modular approach to implementation is envisaged where countries would look to
implement the components of SEEA AFF incrementally, taking into consideration
available resources and national requirements.
58. As with all areas of environmental-economic accounting, a mix of agencies and
disciplines is required for implementation. Given this, a fundamental requirement for
successful implementation is considered planning and co-ordination. Implementation
of SEEA AFF should not be seen as a solely technical or statistical exercise.
Significantly, for the efforts to be appropriately targeted it is important that producers
and owners of information and users of information be involved from the outset. The
draft SEEA Implementation Guide provides a description of the steps involved in
establishing planning and co-ordination efforts to implement the SEEA.
59. The SEEA AFF itself does not provide detailed guidance on the compilation of data
for specific domains. Rather, the focus is on describing a framework that provides a
structure and rationale for the compilation of data that can be integrated. At the same
time, to provide a starting point for work in this area a separate chapter, Chapter 5,
has been included to summarise the most common data sources that are relevant to
populating the base accounts described in the SEEA AFF. The chapter also provides
links to available topic-specific methodological advice and thus gives a sense of areas
in which those co-ordinating and planning SEEA AFF might focus their work.
1.5 Structure of SEEA AFF
60. To be drafted following initial round of consultation

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Chapter 2: Applications and uses of SEEA AFF

2.1 Introduction
2.1.1 Introduction
1. The SEEA AFF provides a structure for the organization of data that are useful for
policy and analytical work. With this objective in mind, the structure of the SEEA
AFF must be informed by and be responsive to the needs of data users. This chapter
outlines a range of areas and ways in which SEEA AFF data might usefully respond
to those needs and encourage a ongoing discussion between data compilers and data
users. The chapter highlights some potential applications and should not be seen as an
exhaustive list. Through development and testing it is expected that the variety of
applications will grow.
2. As with the SEEA generally, the main purpose of SEEA AFF is the integration of
environmental and economic data with the aim of supporting the mainstreaming of
environmental information in economic, planning and development policy analysis
and monitoring. Too often, environmental and economic data are considered
independently, based around the analytical frameworks that pertain to each field.
Further, linkages to health, poverty and other social and demographic dimensions are
not drawn. Consequently, much analysis does not take sufficient account of the
broader set of factors that will influence an overall system and its outcomes.
3. This issue is very real in an agricultural, forestry and fisheries setting since the
connections between economic units (businesses), the associated people and societies,
and the environments and ecosystems in which they are located are fundamental.
Farmers rely directly on the quality of the soil and the availability of water to grow
crops and raise livestock. Foresters must balance the extraction of timber with the
overall functioning of the forest taking into account soil stability and the management
of pests and disease. Fishermen need to understand how their activity is impacting on
the overall fish stock and how the local environment (freshwater or marine) supports
healthy populations. And all of these economic actors must consider their own
livelihoods and the situation of the communities in which they live.
4. At the same time a focus only on environmental and ecological factors involved in
production and harvest ignores the reality that those involved in agricultural activities
aim to sustain an income for themselves and their family and in this context face
various costs of inputs, delivery and storage, consumer demand and other factors that
drive economic decisions and the choices made with respect to use of the
environment. It is in this challenging decision making space that requires balancing
economic and environmental factors that the SEEA AFF information set aims to
operate.
5. As expressed in the two previous paragraphs, SEEA AFF may be seen as relevant
only to the analysis of individual, albeit extended, production functions. That is, the
SEEA AFF brings together information to extend and improve the data available for
analysis of, for example, the cultivation of rice, the rearing of livestock, and the
management of forests and fish stocks. It is certainly the case that a SEEA AFF data
set should assist in the co-ordination of information for these and other types of
production functions but, it is likely that those directly involved in those specific
areas of production already have a wide range of information and experience that
enables decision making. While the SEEA AFF can support such analysis is not
intended to replace such detailed product specific expertise.

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6. Rather, the analytical benefits of the SEEA AFF stem from its application of the same
framework across different products and activities. By utilizing a common framework
comparisons between products and activities is facilitated since the concepts,
definitions and classifications used are the same. That is, the production of wheat can
be directly compared to the production of forest products or fish. Further, by using
the concepts of the national accounts and the SEEA Central Framework, the
agricultural products and activities can be compared to products from other industries
such as manufacturing, retail and services.
7. Beyond direct structural comparisons between, for example, yield per hectare or
energy use per tonne harvested, data that are in a common framework can be used to
assess trade-offs between alternative scenarios using various modeling techniques.
8. A related feature is that the starting scope of the SEEA AFF is national level activity.
In concept then the data in the SEEA AFF framework are not simply cases studies of
stylized or exemplar production functions. Rather the relationships between inputs
and outputs are based in aggregate measures of production, supply and demand. In
this context the SEEA AFF may assist in scaling more detailed studies and thus
permit mainstreaming of such technical data into macro level discussions. The logic
of this micro macro connection is an underappreciated aspect of the standard
economic accounts which facilitate combining detailed survey data on input-output
relationships for specific industries with macroeconomic indicators of international
trade, consumer demand, production and investment.
9. The integration of environmental and economic data is considered an important step
towards mainstreaming the discussion of environmental factors in economic,
planning and development policy. Information, in itself is however no guarantee of a
particular outcome with respect to policy or decisions, but its availability may
encourage a more informed approach to decision making. The chapter aims to outline
the relevant connections between the SEEA AFF and more informed decision
making.
2.1.2 Potential beneficiaries
10. Within this general ambition of mainstreaming environmental information into
economic and related decision making there are a range of possible users and
beneficiaries of the SEEA AFF framework and SEEA AFF based data sets. The
following descriptions suggest some of the likely prominent users and beneficiaries.
It should be noted that the beneficiaries may be either users of information or
compilers of information.
11. Information agencies including national statistical offices: These agencies can benefit
from the SEEA AFF through it provision of a structured framework in which to place
multiple data sources in context. Further, the SEEA AFF encourages the use of
consistent and non-overlapping concepts, data item definitions, classifications of
activity and product, etc. The use of such feature may assist in streamlining data
collection activity and assisting data confrontation and quality assessment.
12. National accounts compilation: In many countries agricultural, forestry and fisheries
activity is a significant contributor to GDP. Commonly also, methods for the
collection of data on this activity are hindered by the large numbers of producers and
their spatial distribution, by the seasonal nature of the activity and by the prevalence
of own account and subsistence production. Since the SEEA AFF is a framework
with a basis in the SNA (the measurement standard for GDP), work to compile SEEA
AFF based accounts will be directly relevant to the compilation of estimates for a
countrys core national accounts and hence can contribute to the compilation of
higher quality estimates of GDP.

13

13. Government departments and agencies (e.g. Departments of agriculture, forestry and
fisheries; Departments of environment; Central macro-economic, development and
planning institutions): Although departmental structures vary considerably around thr
world most countries and many administrative regions will have departments with
interests that span economic and environmental issues. Commonly, their core datasets
are likely to be many and varied and not conducive to the joint consideration of
environmental and economic factors. Data compiled following the SEEA AFF should
assist these various departments to better understand and convey macro and micro
level linkages and trade-offs between these factors.
14. Natural resource managers: In many respects the compilation of the SEEA AFF will
require the input from natural resource managers such as foresters, fisheries experts,
soil experts and hydrologists. The SEEA AFF is likely to provide little direct
information to support better management of these individual natural resources but
the use of a common framework may facilitate a greater appreciation of linkages
between natural resources and between natural resources and economic drivers for
their use.
15. Industry associations, individual economic units, including multi-national
corporations: Often the focus of discussions on the use of the SEEA concerns its
relevance for government and administrative decision making. However, a well
established, broadly based information set on agricultural activities is also likely to be
of particular interest to private sector economic actors including industry associations
and businesses. Information from a SEEA AFF database may provide useful source
of business intelligence and support the assessment of risks through the supply chain.
16. Academia and research institutes: The increasing focus on environmental-economic
and other interdisciplinary linkages suggests that the availability of data sets to
support analysis of this type should support research and independent monitoring in
these areas. Further, the methodological challenges involved in bringing together
environmental data in physical terms within an economic accounting framework will
require ongoing investigation and thus provide important entry points for researchers.
17. International agencies: For international agencies the SEEA AFF framework may
provide a number of important links. From a statistical perspective the SEEA AFF
framework can support efforts to improve the quality of relevant statistics around the
world, in particular through collaboration with the Global Strategy to Improve
Agricultural and Rural Statistics. From a development perspective, given the relative
significance of agricultural, forestry and fisheries activities (particularly in terms of
employment), a greater understanding of the environmental linkages is important, as
is the capacity to compare across countries using comparable metrics, including for
example agri-environmental indicators.
18. There is also a wide range of global policy initiatives that have important links to
agricultural, forestry and fisheries activities including the Post-2015 development
agenda and its Sustainable Development Goals, UNDP/UNEP Poverty Environment
Initiative, UNEP REDD+, CBD Aichi Biodiversity Targets and goals, UN
Convention on Deforestation and Desertification, Sustainable Energy for All, and the
UNFCCC.
2.1.3 Links to SEEA Applications and Extensions
19. Chapter 1 introduced the SEEA AFF as being based upon the concepts and definition
of the SEEA Central Framework and the SNA. In many ways, therefore, the SEEA
AFF may be considered an application of the SEEA Central Framework but with a
specific focus on agricultural, forestry and fisheries activity. This connection is
important since it means that, in general terms, the various applications, uses and

14

extensions of the SEEA Central Framework are also applicable in the case of SEEA
AFF.
20. In this context, SEEA 2012 Applications and Extensions has been prepared as part of
the SEEA Central Framework drafting process. It provides a broad overview of ways
in which data, once organized following the design of the SEEA Central Framework,
may provide indicators; be used in analysis; and support extensions to related
thematic areas. Readers are encouraged to review the material in SEEA Applications
and Extensions as another way of understanding the potential use of the SEEA
approach.
21. A particular aspect of SEEA Applications and Extensions is its description of
environmentally extended input-output tables and the ways in which such tables are
able to support detailed modeling exercises, including input-output analysis, general
and partial equilibrium analysis and other related approaches. A summary of possible
approaches is provided in section 2.2.3 below.
22. Since the SEEA AFF follows the design of the SEEA Central Framework, data
compiled following the SEEA AFF will, with the required attention to detail, also
support this type of analysis. Indeed, it may be the case that detailed agricultural
related environmental-economic modeling is underway within a country. This type of
work would be very usefully supported by a data set compiled along the lines of
SEEA AFF. Further, compilation of SEEA AFF is likely to be very usefully informed
from collaboration with those involved in agricultural modeling.
2.2 Primary ways of applying the SEEA AFF framework
23. This section describes the different ways in which the SEEA AFF framework may be
used. Some ways will be more relevant to some users than others but the variety of
uses highlights the potential of the SEEA AFF, as with the SEEA more generally, to
provide a common platform for engagement across disciplines.
2.2.1 Use in statistical and data co-ordination
24. With its strong connections to the SEEA Central Framework and the SNA, the SEEA
AFF brings with it the many features these accounting based statistical frameworks
provide to the organization of information and statistical activities. Important
possibilities in this regard include the following.
25. Conceptual framework for a database and central point for organizing data. Through
its use of consistent classifications (e.g. product, activity) and information structures
(e.g. supply and use tables, asset accounts), the SEEA AFF provides a platform for
considering how to bring together economic and environmental information into a
common setting.
26. Data gap analysis and gap filling. The SEEA AFF is a broad framework designed on
the information that would be most relevant rather than on the basis of the
information that are currently available. Given its breadth, the SEEA AFF framework
can be used to highlight and assess areas of missing or poor quality data and hence
support the allocation and prioritization of resources to fill data gaps deemed of most
importance.
27. Data collection and reporting. As a conceptual framework SEEA AFF is able to
support and encourage the use of consistent data item definitions across different
collections; to support and encourage the use of consistent classifications across
collections (e.g. product classifications); and to facilitate the exchange of data
between agencies, including at international level.

15

2.2.2 Uses in defining indicators

28. One of the important motivations for the SEEA is to assist in the derivation of
indicators that reflect cross-domain comparisons such as yield per hectare and water
use per tonne of crop produced. For these indicators to be most meaningful there
needs to be a consistency in the definition of the information from all relevant
datasets. Most commonly, different datasets apply slightly different scopes,
definitions and classifications and as a result the quality of resulting indicators may
be compromised.
29. The SEEA AFF meets this challenge by describing a common scope and
classification for all datasets. This provides a basis for both the adjustments required
to primary data to derive high quality cross-domain indicators and also giving a basis
for developing the primary data sets themselves.
30. This section outlines some of the types of indicators that may be relevant from the
perspective of environmental-economic links for agricultural activities. It builds on
the introductory information on indicators in Chapter 6 of the SEEA Central
Framework and the economy wide discussion on indicators in Chapter 2 of the SEEA
Applications and Extensions.
31. Chapter 6 of the SEEA Central Framework describes three broad types of indicators:
(i) descriptive statistics; (ii) environmental asset aggregates and indicators; and (iii)
environmental ratio indicators. All three types of indicator are relevant in a SEEA
AFF context.
32. Descriptive statistics cover measures of aggregates and totals such as the total
fertilizer use by agriculture, total production of livestock products, etc where the
totals emerge from aggregations within the accounting structure. Descriptive statistics
also include structural statistics such as the proportion of irrigated water use
attributable to food crops or the share of land used for forestry. In a SEEA AFF
context, descriptive statistics will tend to be based on information from within a
single base account or in relation to a single variable such as value added or
employment (e.g. the share of employment in agriculture/forestry/fisheries).
33. Environmental asset aggregates and indicators cover measures of the stocks and
changes in stocks of environmental assets in both physical and monetary terms.
Measures of depletion and estimates of asset/resource life are included in these
indicators. In physical terms environmental asset indicators will be derived from a
single asset account. In monetary terms it is also possible to consider the derivation of
indicators such as the share of national wealth (i.e. the sum of all national economic
assets less liabilities to the rest of the world) attributable to individual environmental
assets.
34. Environmental ratio indicators are of three main types. First, productivity and
intensity indicators where the use of a resource or input (e.g. energy use) is related to
a measure of output (e.g. value added, production). A productivity indicator uses the
resource or input measure as the denominator, whereas an intensity indicator uses the
resource or input measure as the numerator. The derivation of meaningful
productivity and intensity indicators is perhaps the most significant application of the
SEEA AFF framework. The intent is to develop these types of indicator across
difference environmental variables (land use, water use, energy use, etc) and across
individual products and activities.
35. Second, decoupling indicators which are similar in form to productivity indicators but
tend to focus on residual flows (such as emissions) or flows considered potentially
unsustainable (such as energy use) and also tend to focus at aggregate levels. A good

16

example of a decoupling indicator is the GHG emissions to GDP ratio where

decreases in the ratio reflect a decoupling of GDP growth from GHG emissions. A
similar ratio may be developed with a focus only on agricultural, forestry and
fisheries activity.
36. Third, are polluter pays indicators which link estimates of physical flows of residuals,
(e.g. GHG emissions, flows of waste), with the associated costs to business such as
payment of relevant taxes or expenditures to treat or remediate the pollution.
Extensions to the set of SEEA AFF accounts to incorporate information on
environmentally related taxes and other payments would be needed to develop these
indicators. The use of SEEA AFF in this way may assist in quantifying the costs of
pollution.
37. Given this range of potential indicators and given the breadth of the SEEA AFF
framework it would be possible to develop a set of SEEA AFF indicators. However,
as explained in Section 3.5 it is not the intention of SEEA AFF to propose a specific
set of agri-environmental indicators, sustainability metrics or similar. Rather it is
considered that SEEA AFF can provide a framework within which the data used to
derive indicators through participative processes is readily available and organized in
a coherent fashion.
38. Examples of indicator sets include the indicators being developed to support the post2015 Sustainable Development Goals, the FAO/OECD/Eurostat set of agrienvironmental indicators and the indicators within the Sustainable Energy for All
(SE4All) Global Tracking Framework. Many of the indicators within these indicators
sets can be derived from a SEEA AFF based dataset and, in reverse, it would be
relevant for the selection of indicators to consider the potential to derive indicators
based on the SEEA AFF framework.
39. Once a set of indicators has been established there may be interest in developing a
single, overarching indicator that combines the information in the various subindicators. A well-known composite indicator is the Human Development Index that
combines indicators of life expectancy, knowledge and education and national
income. The SEEA AFF offers no specific advice on the formation of so-called
composite indicators and points to the considerations described in the OECD
Handbook on Constructing Composite Indicators.1
40. The SEEA AFF does not define a concept of sustainability and nor does it suggest
that direct measures of overall sustainable development may be derived from a SEEA
AFF dataset. At the same time, the SEEA AFF does provide information that is
relevant in assessing the sustainability of agricultural production and in the
measurement of some of the many facets of sustainable development, particularly in
relation to those in rural areas. The distinction between organizing relevant
information and the direct measurement of sustainability is an important one to recall
when considering the potential role of the SEEA AFF.
2.2.3 Uses for detailed analysis and modeling
41. The information in the SEEA AFF can also be used to support the compilation of
environmentally extended input-output tables (EE-IOT). EE-IOT are introduced in
Chapter 3 of the SEEA Applications and Extensions.
42. The general idea of EE-IOT is that standard input-output tables that focus only on
flows of products within an economy measured in monetary units, are extended to
1

OECD, Joint Research Council European Commission (2008) Handbook on Constructing Composite
Indicators: Methodology and User Guide, OECD, Paris

17

incorporate environmental flows, measured in physical units, such as GHG emissions,

use of water and energy, and the like. The mathematics of input-output analysis have
been adapted to suit this extension with the key being the organization of information
on the additional environmental flows using the same product and industry
classifications as used in the standard input-output table.
43. Since standard input-output tables are structured in a manner aligned with the SNA,
environmental information that is organized following the SEEA, including
agricultural, forestry and fisheries data, can be readily incorporated into an EE-IOT.
44. EE-IOT have been developed for individual countries and, increasingly, are being
developed to cover multiple countries so called Multi-Regional Input-Output tables
(MRIO). MRIO incorporate connections between countries in terms of the
international trade in goods and services.
45. Once EE-IOT are established a range of different types of analysis may be supported.
The following examples are described building on the descriptions in the SEEA
Applications and Extensions. Readers are referred to that document for further
information and related references.
46. Multipliers. Using the structural relationships between input and outputs that are
reflected in EE-IOT, multipliers can be derived that provide a measure of direct and
indirect impacts per unit of output by industry. So, for example, multipliers can
provide a measure of the potential increase in emissions due to increases in
production in one industry both for that industry (direct impacts) and for the economy
as a whole (indirect impacts). Multipliers may also be considered in terms of
backward linkages (i.e. the series (or chain) of inputs and outputs leading to the
production of agricultural, forestry and fisheries outputs) and forward linkages (i.e.
the series of inputs and outputs that commence with those outputs).
47. Footprints and related responsibility analysis. The derivations of footprints are
similar to the logic of multipliers in using structural relationships between inputs and
outputs. However, the focus is to attribute responsibility for the environmental flows
either to producers or final consumers.
48. By working from a consumption perspective, one effect of a footprint approach is to
incorporate the environmental inputs and impacts not only in the country in which the
consumption takes place but also the inputs and impacts in other countries whose
production is imported into the consuming country. Various assumptions are
generally required in order to support such cross country analysis and the availability
of detailed data such as contained in the SEEA AFF would be of direct relevance in
better understanding the cross country connections.
49. Structural decomposition analysis. This type of analysis again based on the structural
relationships within an EE-IOT enables understanding the drivers behind changes in
specific variables. For example, the changes in total emissions may be attributable to
changes in the intensity of production, changes in industry structure or changes in
final demand. Because the detailed SEEA AFF data can be integrated within a
broader data set for the whole economy, such decomposition can be supported.
50. Extended productivity analysis. Traditionally, measures of industry and activity level
multi-factor productivity (MFP) estimated using growth accounting techniques have
been limited to considering the factors of labour and produced economic assets. The
extended data set of the SEEA AFF would enable consideration of additional factors
of production, in particular the role of natural resources, and thus support
measurement of extended or green estimates of MFP. A SEEA AFF dataset would
also support productivity analysis using alternative techniques.

18

51. Modeling of international trade. For all countries, the international trade in
agricultural, forestry and fisheries commodities is an important issue and is
commonly a key focus of bilateral and multi-lateral trade discussions. Data based on
the SEEA AFF framework could be used to inform modeling of the effects of trade
agreements and, in particular, encourage consideration of environmental factors when
assessing the various trade-offs involved. A particular consideration in this analysis is
likely to be the varying levels of subsidy to agricultural, forestry and fisheries activity
that are provided in different countries.
52. General and partial equilibrium analysis. General and partial equilibrium analysis is
also based on EE-IOT but incorporates a more dynamic approach to assessing the
structural relationships as distinct from the static approach that is used in input-output
analysis (reflected in the types of analysis just described). In equilibrium analysis
additional assumptions regarding the operation of the economy are introduced
enabling resource constraints to be taken into account for example constraints in the
availability of labour and natural capital. Further, the datasets used for this type of
analysis often incorporate social extensions to IOT datasets in the form of Social
Accounting Matrices (SAMs). Again, as for other EE-IOT based analysis, the SEEA
AFF data can be used to support equilibrium analysis particularly where there is a
focus on the analysis on agricultural activities and potential constraints around natural
capital for example land and water resources.
53. A common alternative to input-output based approaches to analysis is life cycle
analysis (LCA) in which connections between inputs and outputs in the supply chain
for a product or group of products, generally working from the point of consumption,
as for footprint analysis. While LCA cannot reflect the full integrated structure of
production and consumption, its bottom up approach can provide a detailed
consideration of the relevant factors and drivers, both environmental and economic.
although
54. Data from SEEA AFF based approaches should support both types of analysis and
there may be important synergies in considering both LCA and input-output based
approaches. However, careful design is required to ensure that links through the
supply chain can be appropriate tracked, for example in the selection of measurement
units as livestock move from farm, to manufacturer to household.

2.3 Applications of SEEA AFF to policy

55. This section complements the previous two sections by describing different policy
areas that might be supported by the availability of a well-populated SEEA AFF data
set. In considering the different areas it should be recalled that one, general,
motivation for the work on SEEA AFF and the SEEA overall, is to encourage and
facilitate a discussion on connections between environmental and economic factors,
particularly in economic, planning and development decisions. It is unlikely that
statistical information alone will constitute the basis for decisions. In this sense the
approach taken in the SEEA AFF to integrate and combine data in meaningful ways
is just as important as the particular descriptions and definitions outlined here.
56. The term policy is used in a generic way. It covers the use of information to support
the policy development process whereby alternative options and scenarios are
considered. It covers the use of information for the analysis of policy outcomes and
finally relates to the use of information to monitor progress in a policy for example
through indicators or benchmarks. In addition, while often focused on government
policy processes, the term policy is used here to also apply to the decision making
frameworks of non-government units, including corporations and small businesses.

19

2.3.1 Primary policy themes

57. The design of the SEEA AFF framework supports discussion in four broad policy
themes. This section provides a brief description of those themes and the potential
links to specific policies. The four themes also provide a basis for the articulation of
four SEEA AFF combined presentations that are described in section 3.5.
Theme 1: Activity and product specific inputs.
58. Under this theme the focus is on the analysis of the economic and environmental
information about the most important products for a country and the associated trends
in the use of environmental inputs and the generation of residual flows. Determining
the most important products will depend on the criteria chosen which may include
products most traded internationally, products that are most significant for nutrition,
products that contribute most to production or products that have the largest use of
land.
59. The policy connections for this theme relate to understanding the intensity of use of
environmental flows and hence are of direct relevance in assessing the impact of
changes in policies and incentives towards green growth and related objectives.
Theme 2: Food product consumption and waste.
60. Under this theme the focus is on the production and consumption of food products
and in particular tracking the various sources of supply (domestic production or
imports) and destinations of use (final consumption, intermediate consumption,
changes in inventories and exports). In balancing supply and use there will always be
an element of waste and loss of food and this must be recorded and attributed
appropriately.
61. The main policy connections for this theme are two fold. First, there are important
connections between food production and household consumption and hence to food
security that must be tracked and understood. Second, the potential to improve
outcomes with respect to food security by reducing the extent of food waste through
the supply chain is an increasing area of policy focus.
Theme 3: Sustainable use of environmental assets (timber, fisheries, water, soil).
62. Under this theme the focus is on the extent to which the extraction and use of
environmental assets by agricultural, forestry and fisheries activity is depleting the
available resources and hence reducing the long term capacity for these activities to
be supported.
63. The policy connections for this theme lie in supporting the management of natural
resources and in understanding potential environmental constraints for particular
activities.
Theme 4: Cross-industry and activity perspectives.
64. Under this theme the focus is on bringing together information that can be compared
across the range of agricultural, forestry and fisheries activities. Of most relevance is
information on production and value added, international trade, employment, land
use, water and energy use and GHG emissions.

20

65. The policy connections for this theme are numerous. Of particular relevance are
issues such as land use planning and the food/water/energy/climate nexus. In both of
these areas a broad understanding of the trade-offs between different activities is
required. This level of analysis is also likely to be most optimal for international
comparisons and benchmarking.
2.3.2 Other relevant policy connections
66. The design of SEEA AFF may be extended in few directions to encompass a broader
range of policy themes. Specific proposals on the extensions are described in Chapter
4 as they pertain to particular data domains.
67. One direction is developing a focus on rural incomes as distinct from total income
from agricultural, forestry and fisheries production activity. A rural income focus
may be supported by integration of information on farm size, the demographics (e.g.
age, gender) of farm ownership and employment, and income distributions. The
challenge in incorporating this view within the SEEA AFF framework is determining
relevant environmental information (water use, fertilizer use, etc). This may be
possible through understanding various production typologies (i.e. differences in
production techniques between small holders and large scale farmers) but this is not
yet developed formally within the SEEA AFF framework.
68. A second direction is to consider in more detail the connections between agricultural,
forestry and fisheries activity on a domestic level with the reality of international
trade in agricultural commodities and the related trade and distribution of food
manufacturing, wholesale and retailing activities so-called global supply chains.
While a number of international trade models have been developed (e.g. GTAP) and
the structure of the SEEA AFF supports improved data quality for these models,
ideally there would be the capacity to track flows relating to specific products and
types of corporation. To do this may involve restructuring the standard input-output
table and would also raise a number of statistical challenges. At this stage, these
considerations are not developed within the SEEA AFF framework.
2.3.3 Applications at sub-national level
69. As noted above, the SEEA AFF is designed for integration of national level data sets.
However, in many situations, interest will lie in the connections between
environmental and economic factors at a sub-national level since environmental
pressures and scarcities are often location specific in nature. For example, water
scarcity within a particular river basin.
70. In principle, the framework for the SEEA AFF may be applied at a sub-national level.
The challenge is then to find a suitable range of data at a sub-national level and also
to determine the appropriate sub-national boundaries. The boundaries may be
administrative which tends to suit the organization of socio-economic data or
environmental e.g. by river basin or landscape/ecosystem type (forests, wetlands,
etc). Selecting the best sub-national level is likely to require some degree of
compromise that takes into consideration the type of information available, its
capacity to be scaled up or down, and the type of question that is of interest.
71. Increasingly there are datasets being developed that seek to bring together data at fine
spatial levels to enable detailed assessment of the capacity of the environment to
sustain agricultural production. Such datasets use fine level geospatial techniques and
various assumptions. One such dataset is the FAOs GAEZ Global Agri-Ecological
Zones. The development of SEEA AFF, including at national level, should support
the development of such datasets by providing coherent national level information on

21

the various environmental and economic factors of interest such that modeling at subnational level can be appropriately benchmarked.
72. Another aspect of sub-national data is the existence of spatial areas for analysis which
cross national boundaries. For example, assessment of the Mekong delta, the Nile, or
Lake Victoria. The benefit of the SEEA AFF in this context is that each relevant
country would be compiling national data on a comparable basis and hence the
resulting sub-national estimates should be more comparable than might otherwise be
the case.
73. An ongoing challenge in developing sub-national level data sets is determining the
appropriate scale and related geographical classification. Often it will be the case that
socio-economic data, for example population census data, are organized following
one classification while environmental data are organized following different
classifications for example by water catchment. Both classifications may be
appropriate for the individual datasets but in a SEEA context in which integration of
data is required then choices of scale and classification must be made. One way
through this challenge is to downscale all information to very fine levels for
example to <1km square grids and then upscale as required.
74. Notwithstanding the statistical challenges the relevance of sub-national information is
very high and, at least for individual datasets, there is a great deal of technology and
techniques available to generate sub-national data at multiple scales. The question for
those using accounts is to be able to appropriately define the questions to be answered
and hence identify the relevant data that must be integrated.
75. To support this process it is likely to be of great use to map individual data sets, for
example on wheat production, or water use, and compare the outcomes. In doing so
particular locations within a country and particular issues may be highlighted far
more effectively than via the presentation of information in accounts and tables.

22

Chapter 3: The Conceptual Framework of the SEEA AFF

3.1 Introduction
1. The conceptual basis for the SEEA AFF lies in the SEEA Central Framework and the
SNA. Together, these statistical standards provide a broad foundation for integrating
environmental and economic data in both monetary and physical terms. This chapter
summarizes the most relevant accounting structures and principles from those
standards and gives a description of the main components of the SEEA AFF
framework.
2. A useful way of considering the SEEA AFF framework is shown in Figure 3.1. The
figure shows the way in which the four main components - basic data and statistics,
base accounts, combined presentations and indicators - link together. It is important
to recognize that the nature of the connections between each of the components
should not be subject to strict rules. Thus, not all possible basic data will be utilized
in the compilation of base accounts and precisely which data are used will depend on
the level of detail and choice of methods applied in the base accounts.
Figure 3.1: SEEA AFF information pyramid

Indicators

Combined presenta ons

Base accounts

Basic sta s cs and data

Popula on &
employment

AFF produc on
and consump on

Inputs and
residuals

Natural resources &

environmental assets

Economic

3. Further, combined presentations will not include all of the information present in base
accounts and, indeed, may incorporate additional information, for example population
data, that are not included in the base accounts. In addition, the content of combined
presentations may change over time to reflect changing analytical and policy
priorities, while the structure of the base accounts remains relatively stable. Finally,
the derivation of indicators will largely take information available in combined
presentations but it should not be constrained in this way.
4. Overall, the structure of the SEEA AFF provides a broad starting point for the
integration of information and the support of analysis and discussion. It should not be
interpreted as a one-size fits all approach and compilers and analysts are encouraged
to adapt the framework to respond to the information needs of users while still
applying basic accounting principles.

23

3.2 Basic national accounting principles

3.2.1 Introduction
5. There are detailed descriptions of national accounting principles in the SNA 2008,
particularly in Chapters 2 through 5. There is also a summary of the most relevant
aspects for environmental-economic accounting in the SEEA Central Framework
Chapter 2. Given this material, the following section only highlights the most relevant
principles and directs the reader to appropriate sections of the SNA and the SEEA
Central Framework.
6. Central to adopting an accounting approach is the measurement of stocks and flows.
Accounting approaches aim to convey a comprehensive and internally consistent
story regarding the stocks of assets (or capital), changes in those stocks over time,
and flows of production, income, consumption and other transactions associated with
the use of those assets. The internal consistency of the information is ensured through
the application of accounting identities while the comprehensiveness of the story is
determined by the choice of accounting boundaries such as the definition of assets,
the definition of income and production and the choice of geographical scope.
7. With appropriate accounting boundaries and identities in place, the second key aspect
of establishing accounts is the adoption of consistent classifications. Generally, data
that are used for accounting will be sourced from a wide range of agencies and data
collections. In each case the information has likely been collected and organized for
purposes other than integration and accounting. In recent years, increasingly core
macro economic statistics are being collected using standardized classifications of
industries and products but the extension of such standardization to environmental
and specific activity and product level information required for SEEA AFF
compilation has not progressed as far. Consequently, in the actual practice of
compiling accounts it is likely to be necessary to convert data from varying sources to
a common classification to enable the application of accounting principles.
8. In all cases, the SEEA AFF applies the accounting boundaries and principles
described in the SEEA Central Framework. Differences in SEEA AFF relate
primarily to the structuring of the selected base accounts since it is here that the focus
of SEEA AFF on agricultural activities must become apparent.

3.2.2 Types of accounts

9. The SEEA AFF base accounts comprise two types of accounts physical flow
accounts (or supply and use tables) and asset accounts. These accounts are described
in the SEEA Central Framework Section 2.3. Both types of accounts can be compiled
in physical and monetary terms with slightly different structures.
10. Physical flow accounts / Supply and use tables. Monetary supply and use tables are
generally used to record all flows of products in an economy between different
economic units. As their name suggests, they are structured to record the total supply
of products on the one hand and the total use of products on the other. The required
balance between total supply and total use is the relevant accounting identity. The
basic structure of a monetary supply and use table is shown in Table 3.1. A detailed
description of monetary supply and use tables is presented in SNA 2008 Chapter 14.

24

Table 3.1 Basic form of a monetary supply and use table (Table 2.1 from SEEA CF)
Industries
Supply table
Products
Use table
Products

Households

Government

Accumulation

Output
Intermediate
consumption

Household final
consumption
expenditure

Rest of
the world

Total

Imports

Total supply

Government final
Gross capital
Exports
consumption
formation (incl.
expenditure
changes in inventories)

Total use

Value added

11. Physical flow accounts or Physical supply and use tables are a central feature of the
SEEA Central Framework. Their structure derives from monetary supply and use
tables with extensions to enable the recording of flows to and from the environment.
The extensions involve the addition of a new column Environment and the addition
of two rows labeled Natural inputs and Residuals. The basic form of a physical
flow account is shown in Table 3.2.
Table 3.2 Basic form of a physical flow account (Table 2.2 from SEEA CF)
Industries

Households

Accumulation

Rest of the
world

Supply table
Natural inputs
Products

Output

Residuals

Residuals
generated by
industry

Use table
Natural inputs
Products
Residuals

Environment

Total

Flows from the

environment

Total supply of
natural inputs
Total supply of
products
Total supply of
residuals

Imports
Residuals
generated by
final household
consumption

Residuals from
scrapping and
demolition of
produced assets

Extraction of
natural inputs
Intermediate
Household final
Gross capital
consumption
consumption
formation
Collection &
Accumulation of
treatment of waste
waste in controlled
and other residuals
landfill sites

Exports
Residual flows
direct to
environment

Total use of
natural inputs
Total use of
products
Total use of
residuals

12. Using these extensions it is possible to account comprehensively for flows of

materials and energy where the flows are recorded in a common unit of measure. For
example, flows of water from the environment, within the economy and back to the
environment can be recorded in a physical flow account using a single measurement
unit of cubic metres of water. Similarly, energy flows can be recorded in joules
irrespective of the energy carrier (e.g. in coal, timber, electricity, heat, food, etc). A
full description of different physical flow accounts is provided in the SEEA Central
Framework Chapter 3.
13. For the purposes of the SEEA AFF the application of the monetary supply and use
tables and physical flow accounts will usually be at the level of individual products
e.g. tracing the total supply and use for wheat. This application of supply and use
principles is not expanded upon in the SNA or the SEEA Central Framework, but it is
nonetheless appropriate and can be completed in line with the general accounting
principles and boundaries.
14. Asset accounts. Asset accounts facilitate the recording of information on the stocks of
assets at the beginning and end of an accounting period and changes in those stocks

25

during the accounting period. Monetary and physical asset accounts follow the same
structure, as shown in Table 3.3 below, with one difference being the inclusion of a
row to record revaluations in assets in monetary asset accounts.
Table 3.3 Asset account (SEEA CF Table 2.3)

Opening stock of environmental assets

Additions to stock
Growth in stock
Discoveries of new stock
Upward reappraisals
Reclassifications
Total additions of stock
Reductions of stock
Extractions
Normal loss of stock
Catastrophic losses
Downward reappraisals
Reclassifications
Total reductions in stock
Revaluation of the stock*
Closing stock of environmental assets
15. The internal consistency of asset accounts is defined by the identity that the opening
stock plus additions to stock less reductions in stock must equal the closing stock.
This identity enables various data on stocks and changes in stock to be reconciled and
data gaps filled as appropriate.
16. Further, in cases where the use of an asset is an input to the production process, e.g.
the logging of timber is an input to the production of wood products, the relevant
reduction in stock recorded in the asset account is conceptually equivalent to the flow
of natural inputs recorded in the physical flow accounts. Thus there are important
connections between accounts that should be taken into consideration in the
compilation process. This aspect of accounting may be of particular use when aiming
to improve measurement of economic activity for agricultural activities. For example,
where data on natural inputs are available, its quality may be assessed through its
consistency with changes in the underlying stock of environmental assets.
17. Although asset accounts may be used to record stocks and changes in stocks of any
type of asset, the focus in the SEEA Central Framework and in the SEEA AFF is
recording information on environmental assets. Environmental assets are the
naturally occurring living and non-living components of the Earth, together
comprising the biophysical environment, which may provide benefits to humanity
(SEEA Central Framework, 2.17).
18. As explained in the SEEA Central Framework, environmental assets may be
measured either from a perspective of individual components (e.g. timber resources,
water resources, mineral and energy resources) or from a perspective of ecosystems,
i.e. spatial areas in which various individual components interact through ecological
processes. The perspective taken in the SEEA AFF is on individual components
noting the potential for incorporating an ecosystem perspective as outlined in Chapter
1.

26

19. In the SEEA, environmental assets include both natural and cultivated assets, that is,
the asset boundary is not limited to those biophysical components that may be
considered outside human management. This issue is particularly relevant for SEEA
AFF. Given this boundary the SEEA AFF asset accounts include measurement of
livestock, plantation timber and stocks of fish in aquaculture facilities. This broad
notion of environmental assets is useful in understanding the changing structure of
production. A detailed description of accounting for environmental assets is provided
in the SEEA Central Framework Chapter 5.
3.2.3 Main accounting boundaries and principles
20. To be drafted. This material will summarize relevant material in the SEEA Central
Framework (primarily sections 2.5 2.7) and selected sections of the 2008 SNA. Key
points will be:

Production boundary, asset boundary, geographic boundary

Valuation concepts
Economic units establishments, enterprises
Classifications industry, sectors and products
Double entry, time of recording, interpolation, length of accounting period,

3.3 SEEA AFF Base accounts

3.3.1 Data domains
21. The SEEA AFF base accounts have been formed around nine data domains. Each
domain relates to a general data area that may include data on stocks and flows and
for which data will be available from a relatively limited number of data sources. The
objective of the base accounts in each domain is to organize the available information
following accounting concepts and principles outlined in the previous section and
thus provide a basis for the further integration of information across domains.
22. The nine data domains and their associated base accounts are shown in Table 3.4.
Since the perspective taken in SEEA AFF is an activity one, rather than being defined
by a specific type of asset or flow, there is no immediate restriction on the breadth of
analysis or the number of data domains that might be incorporated. The selected
domains and the associated accounts are considered the most relevant in terms of
understanding the relationship between the environment and agricultural activity
taking into consideration the nature of the production processes in physical and
monetary terms and also the generally understood policy issues for agriculture,
forestry and fisheries.
23. During the development and implementation of SEEA AFF at country level, if
additional data domains are identified as relevant, then an extension of the set of
SEEA AFF base accounts may well be appropriate.
24. Within each data domain there will be some data sources that are relatively
commonly held across countries. For example, for agricultural production there will
generally be regular agricultural surveys and censuses at country level. However, the
preparation of base accounts does not require specific data collections and it is likely
that a range of sources and methods will be used to estimate the relevant concepts and
variables.

27

Table 3.4 : Data domains and base accounts

Data domains
Agricultural production

Forestry

Fisheries
Water resources

Energy
GHG emissions
Fertilizers and pesticides
Land use and land cover
Soil
Economic data

Base accounts
Physical flow account for food crops
Physical flow account for non-food crops
Physical flow account for livestock products
Asset account for livestock
Physical flow account for timber products
Asset account for forests
Asset account for timber resources
Physical flow account for fish and aquatic products
Asset account for fish and other aquatic resources
Asset account for water resources
Physical flow account for water abstraction
Physical flow account for water distribution and use
Physical flow account for energy use
Physical flow account for GHG emissions
Physical flow account for fertilizers
Physical flow account for pesticides
Asset account for land use
Asset account for land cover
account not yet defined
Monetary supply and use table for agricultural products
Extended production account for agricultural activity

25. Further, over time, there may be improvements made in the collection and analysis of
data within a data domain that identify concerns and inconsistencies. Indeed, the
application of an accounting framework may highlight such issues. In all cases the
accounts should be compiled based on the best available evidence while at the same
time ensuring as coherent a story of change over time as possible. Managing
disruptions in a time series of source data is a key aspect of environmental-economic
accounting.
26. Further discussion on potential data sources for each base account is presented in
Chapter 5.
3.3.2 SEEA AFF Physical flow accounts
27. There are 11 physical flow accounts in the set of SEEA AFF base accounts. Their
main purpose is to ensure that data within each of the relevant domains, for example
production of food crops, is accounted for consistently across the various elements of
supply and use. Thus, in each case the base account requires that the total supply of a
product (i.e. domestic production plus imports) is equal to the total use of that product
as intermediate consumption, final consumption, investment, changes in inventories
or exports.
28. Beyond ensuring the consistency of data within a domain, the use of physical flow
accounts puts in place a connection between the supply and demand sides of
agricultural activity thus facilitating the analysis of demand factors that may drive
agricultural production. Examples include rising population and increasing
consumption of calories per person.
29. The SEEA AFF physical flow accounts are of two main varieties. Where the focus is
agricultural production or on non-natural inputs to production, the physical flow
accounts focus on recording the supply and use of individual products such as wheat,
timber and fertilizer. These accounts largely mirror the structure of monetary supply
and use tables since there are no flows of natural inputs or residuals that are recorded.

28

Thus, for example a column to record flows to and from the environment is not
required.
30. Given this close link between the structure of the physical flow tables for products
and monetary supply and use tables it might be reasonable to conclude that there
would be a strong alignment between data in these physical flow tables and the
matching data recorded in monetary terms within the standard national accounts. In
general, it appears that while some physical data are used in the compilation of the
national accounts there is generally no routine balancing of supply and use in physical
terms for specific commodities. Undertaking such an exercise may lead to
improvements in both the physical flow tables and the national accounts.
31. One place where a balancing of physical flows of certain commodities may take place
is in the compilation of food balance sheets. The objective of food balance sheets is to
determine the overall human consumption of all food items both in tonnes and in
calories. Food balance sheets adopt slightly different conventions from the standard
national accounts and SEEA but fundamentally are similar in nature in the sense of
comparing the total available food with its use. In doing so, a balancing of supply and
use of each food commodity takes place. Generally, however, a reconciliation of this
work with related work in monetary terms for the national accounts does not take
place.
32. The second type of physical flow account in the SEEA AFF is where flows related to
natural inputs and emissions are relevant, namely water, energy and emissions. In
these cases the structure of the base accounts more closely resembles the physical
flow accounts described in the SEEA Central Framework.
3.3.3 SEEA AFF Asset accounts
33. There are 7 asset accounts in the SEEA AFF. Their main purpose is to organize data
on stocks of environmental assets within a specific data domain. In all cases the
structure of the asset accounts follows that of the asset accounts described in the
SEEA Central Framework.
34. The asset accounts in the SEEA AFF are all described using physical data only e.g.
hectares of land, cubic metres of timber, number of livestock. It would be possible to
also incorporate, using the same structures, asset accounts in monetary terms, again
following the guidance in the SEEA Central Framework. At this stage however, it is
recommended that for SEEA AFF focus be placed on organizing relevant physical
data. This is for two reasons. First, the physical data is, in most cases, a pre-requisite
for undertaking the valuation of environmental assets since many environmental
assets are not traded in the market and hence observed market prices for assets are not
available. Second, from an analytical perspective there is much to be gained from
consideration of the physical stocks in terms of assessing sustainability of production
and related productivity type relationships.
35. Like the SEEA Central Framework the SEEA AFF asset accounts include both
natural and cultivated environmental assets. The distinction between natural and
cultivated assets originates in the SNA and involves distinguishing between those
assets that are created as a result of a process of production and those assets that are
naturally occurring.
36. Examples of cultivated assets in the case of agricultural activity including livestock,
orchards and vineyards, plantation forests and aquaculture. In all of these cases there
is generally a relatively high level of economic activity associated with the
establishment and growth of the assets before and during their use in production.

29

Examples of natural assets include land and soil, fish stocks on the open seas, natural
forests and wild animals that may be hunted for meat or other products.
37. Making the distinction between cultivated and natural assets may be difficult at times
and a range of considerations is outlined in the SEEA Central Framework section 5.2.
However, since the asset accounts comprise both types of environmental assets the
precise delineation is of lower consequence and the intent in making the distinction is
to track over time structural changes in the way in which environmental assets are
managed e.g. from natural to plantation timber, from capture fisheries to
aquaculture.
3.3.4 SEEA AFF Economic data
38. The term economic data is used here to refer to the data that would generally fall
within the scope of the standard national accounts datasets and hence are reported
largely in monetary terms. Within this context of national accounts data, there is a
range of data that may be incorporated. However, for the purposes of SEEA AFF two
perspectives of national accounting are considered.
39. First, there are economic data that describe the supply and use of agricultural
commodities in monetary terms. Thus they consider, for a given product (e.g. wheat)
the domestic production, imports and exports, intermediate consumption, final
consumption and changes in inventories for individual products. These data may
often be available in national input-output or supply and use tables. In conjunction
with the physical flow accounts for agricultural products they permit a more fulsome
assessment of the linking between production and demand since these data
incorporate the effect of prices.
40. Second, extended production and income accounts for agricultural activities and
products are developed. Starting first at the level of main agricultural activities, a
production and income account describes a production function. It therefore brings
together information on production, intermediate costs of production (fuel, seed,
fertilizer, water, etc), and compensation of employees (commonly known as wages
and salaries). From these three items the gross operating surplus (commonly known
as profits) can be derived and the sum of the gross operating surplus and
compensation of employees provides an estimate of the value added of the activity.
41. Beyond these core production and income variables, other economic data can be
brought into this view including data on employment and hours worked, gross fixed
capital formation (investment) and depreciation, and the payment of interest and rent.
Such an extended production and income account provides the basis for the
derivation of indicators of profitability and productivity.
42. In theory production functions can be defined at the level of broad activities (e.g.
cropping, fisheries, forestry), at the level of individual products (e.g. rice, tuna
fisheries, beef production), and at the level of specific process of production (e.g.
paddy rice, extensive grazing, organic farming). In practice, the level of detail that
can be achieved may be limited by the ability to attribute some production costs that
apply at the level of a business (e.g. management costs) to individual products and
processes. For the SEEA AFF, the proposals outlined in Chapter 4 are indicative only
and decisions on the level of detail that should be compiled should be based on both
data availability and policy and analytical relevance.
43. The development of these types of information are an excellent example of the
potential to use the outside in approach of accounting whereby more robust
macro level data is used to form a base information set that can be allocated to finer
levels based on other micro level information.

30

3.4 Specific accounting issues for SEEA AFF

3.4.1 Introduction
44. Among the variety of accounting challenges that arise in developing the broad range
of base accounts there are three that are of cross-cutting relevance. They are the
treatment of own-account production and use, the treatment of secondary production
and the treatment of changes in inventories and waste. This section discusses each of
these issues.
3.4.2 Treatment of own account production and use
45. In most economic activities there are varying degrees of own account production and
use. This occurs when a single economic unit produces a particular good or service
and then, rather than selling that output to another unit, the output is used within the
unit. In many cases, a single economic unit may be responsible for a number of
number of stages of production/transformation and in these cases the general
treatment is to not record flows within the economic unit where there is effectively
buying and selling to itself.
46. There are two main exceptions to this recording. The first exception is when the
production is used by the same economic unit as part of their final consumption. The
most relevant and important example for SEEA AFF concerns subsistence agriculture
and fisheries. Thus, in cases where a farmer or fisherman grows food or fibre and
then uses that output for their own family both the production and the associated
consumption should be recorded. This treatment ensures that estimates of production
and consumption are not limited to only those products bought and sold on markets.
While this is a small consideration for developed countries, in many countries of the
world the estimates of own account production in agriculture, forestry and fisheries
may be quite substantial and all efforts should be made to appropriately record this
information.
47. The second exception is when the own account production forms part of the
investment of the economic unit in produced assets (strictly the units gross fixed
capital formation). This may arise if a farmer builds his own storage facilities or
when a farmer breeds cattle or sheep for use as dairy cattle or sheep for wool. In these
types of activity the cattle and sheep are treated in the national accounts as produced
assets that deliver outputs over an extended period of time. While this own account
capital formation may be important in some situations, if there are relatively
balanced patterns in the overall number of livestock and the number of farms then the
recording of this activity will be relatively less important.
3.4.3 Treatment of secondary production
48. Traditionally, consideration of the outputs of agricultural, forestry and fisheries
activities has focused on the production of individual outputs for individual plant and
animal types. For example, the growing of sugar cane would be associated with the
production of sugar and the growing of fruit trees associated with apples, etc.
49. Increasingly, the growing and management of plants and animals is leading to the
production of multiple outputs. For example, not only does sugar cane growing lead
to the production of sugar but a portion of the plant is now also used to generate
energy products. The generation of multiple outputs for use by other economic units
is known in national accounting as secondary production.

31

50. It is not the intention here to describe all of the possible variations of mixed
production technologies for agriculture, forestry and fisheries activities. No doubt
new technologies, economic drivers and environmental constraints will continue to
shift the production mix over time. However, from an accounting point of view there
are two key points to note.
51. First, all secondary production should be recorded as outputs from the producing unit.
Thus, to the extent that a greater volume of biomass is removed from the location of
the producing farm, forest or fishery then that extra volume should be recorded and
any associated additional income. Tracking these additional flows is required such
that the supply chains between these activities and other economic activities can be
fully understood. Also, from an environmental asset perspective, any additional
biomass removal may well reduce the availability of crop residues that would assist
in maintaining the productivity of the soil.
52. Second, in cases where secondary production exists it is likely to be inappropriate to
convert processed quantities into a raw material or live weight equivalent if the intent
is to fully account for supply and use in terms of a single measurement unit such as
tonnes. For example, converting tonnes of refined sugar back into quantities of sugar
cane will provide a balance between quantity of sugar cane produced and the quantity
used but only in the situation where all sugar cane is refined. If, in fact, some
quantities of the sugar cane are also used to produce energy then for a given quantity
of sugar cane produced there will need to be allocations of that quantity between the
different uses.
53. For SEEA AFF purposes therefore the aim in recording the supply and use in
physical terms of individual commodities should focus on allocating the total
production quantity between different uses, including post harvest losses, without
conversion to raw commodity or live weight equivalent quantities.
54. It is noted that the challenge of balancing multiple uses does not affect measurement
of supply and use from the perspective of nutrition since, in effect, uses other than
food production have zero nutritional value and the conversion to raw commodity
equivalent ensures a balanced outcome between supply and use.
3.4.4 Treatment of changes in inventories, losses and waste
55. An important feature of agricultural, forestry and fisheries production is that there are
usually important stages and time lags involved in the growing, harvest, distribution
and storage of the relevant commodities. Multiple businesses will be involved
including the original producer, transportation companies, manufacturers, wholesalers
and retailers. Through this supply chain there will be changing quantities of each
commodity held by the different economic units and given the nature of the
commodities, some proportion will be lost through damage, spoiling or other reasons.
Changes in quantities held will also very because of changes in production and
demand over time.
56. In the standard national accounts these changes in quantities held are referred to as
change in inventories. Using a single entry in monetary terms to cover all of the
possible reasons for changes in inventories is satisfactory from the perspective of
macro-economic statistics. However, for accounting in physical terms and to provide
a more complete set of information for analysis it is relevant to consider a breakdown
of changes in inventories into different components. The particular focus in the SEEA
AFF is on quantities of a commodity that are lost or otherwise not finally consumed
through the supply chain. Further discussion on the treatment of losses is presented in
the SEEA Central Framework, chapter 3.

32

57. Three key stages in the supply chain can be identified. First, losses that take place
during production. These including felling residues in forestry, discarded catch in
fisheries and pre-harvest losses in agriculture such as when mature crops are not
harvested due to low prices or other circumstances. In general, the measurement of
these losses is not undertaken on a regular basis and most estimates of production are
on a net production basis i.e. the quantities that are sold or otherwise supplied by
the producing unit to other units. Ideally however, these quantities should be recorded
as they point directly to the efficiency in the use of natural resources such as land,
water, forests and fish stocks.
58. Second, there are losses that arise between the point of leaving the producing unit
(the farm gate) and either the point of final consumption or the point of
transformation into other products. These losses are often characterized as postharvest losses and are particularly important considerations in countries where
supporting transport, distribution and storage infrastructure is less developed. For
those commodities that are ultimately sold fresh e.g. fruit and vegetables, meat
and fish post harvest losses should include losses of retailers who do not sell or
otherwise must discard the commodities.
59. Third, there are losses that arise within the household when purchased commodities
are not eaten and thrown away. These losses may be characterized as food waste.
Household consumption in national accounting terms is equal to the quantity of
commodities that are purchased rather than the quantity that is ultimately consumed.
It is therefore relevant to partition estimates of household consumption in physical
terms into food waste and consumed quantities.
60. By recording each of these stages of losses a full accounting of physical flows of each
commodity can be presented from the point of growth and extraction to the point of
consumption. Consistent recording of these losses may provide very important
information on potential points of policy response to reduce losses and hence impact
on the overall effectiveness and productivity of agricultural, forestry and fisheries
activity.
61. Increasingly there are important links between the treatment and recording of losses
and the treatment of secondary production as economic units find ways and
incentives to use materials that may have been previously discarded. The accounting
approach of tracking actual flows of commodities to the point of their transformation
into other products should facilitate understanding this developing trend.

3.5 SEEA AFF Combined presentations

3.5.1 Introduction
62. Chapter 6 of the SEEA Central Framework contains a description of ways in which
environmental and economic data may be integrated. A particular approach outlined
in Section 6.3 is the compilation of combined presentations that integrate monetary
and physical information. Strictly, they are not accounts since the information they
contain need not be in the same measurement units and not all entries within a
physical flow or asset account need be translated into a combined presentation.
63. Combined presentations are valuable mechanisms by which a range of information
pertaining to a particular theme or topic can be presented together rather than
remaining scattered through different accounts. Section 6.5 of the SEEA Central
Framework provides examples of combined presentations for energy, water, forest
products and air emissions. They give an insight into the possibilities and readers are
referred to Chapter 6 for more detailed descriptions.

33

64. In the context of SEEA AFF, the cross cutting perspective of a set of economic
activities provides an even stronger rationale for developing combined presentations
since the range of relevant environmental and economic information is very broad. At
the same time, a number of alternatives exist for the structure of such a combined
presentation. This section describes the relevant considerations and presents four
different SEEA AFF combined presentations that are intended to link to individual
policy themes as described in Chapter 2. It is hoped that by presenting combined
presentations in this way that compilers and users will be encouraged to think of
alternative presentations using the base accounts as a starting point that facilitate
discussions and further analysis.
3.5.2 SEEA AFF combined presentations
65. Tables 3.5 3.8 shows four different combined presentations relevant to four
different policy and analytical themes. The four themes are (i) Activity and product
specific inputs; (ii) Food product consumption and waste; (iii) Sustainable use of
environmental assets; (iv) Cross industry and activity perspectives. They are designed
to give an indication of the potential for combined presentations to bring together
data that are relevant for analysis and for the derivation of indicators. They also serve
to highlight that a range of issues may be considered once a sound underlying
database is constructed. In this sense the SEEA AFF base accounts should not be
considered policy specific indeed depending on the issue different information from
the same base account may be relevant.
66. In general the rows of the tables present selected agricultural, forestry and fisheries
products or activities. The structure and coverage depends on the themes being
considered. Alternative groupings are possible and will depend on the areas of
interest. Often, a particular emphasis in the SEEA AFF is on providing information
for specific products rather than only product groupings. Thus maize, wheat and rice
are shown as distinct from only including a group labeled cereals.
67. Depending on the purpose of analysis, additional rows within a product group may be
added to distinguish different production processes for example between capture
fisheries and aquaculture. Alternatively, rows may be added to show data relating to
organic farming or irrigated agriculture. While there is considerable flexibility to
design the combined presentation to take account of these different views, it is
necessary to consider the implications for the design of the underlying base accounts
and the associated issue of the availability of data.

34

Table 3.5 SEEA AFF Combined presentation: Activity and product specific inputs

35

Table 3.6 SEEA AFF Combined presentation: Food product consumption and waste
Household consumption variables
Food consumption/Nutrition
Total food
of which:
purchased/obtained Food waste
by households (000 (000 tonnes)
tonnes)

Kcal/per
capita/per day

Supply and use variables

Ouput/Domestic
production

Exports

Imports

Production
Quantity
(000 Tonnes)

Quantity
(000
tonnes)

Quantity
(000
tonnes)

FOOD PRODUCTS
Agricultural products
Food Crops
Maize
Rice
Wheat
Palm oil
Sugar
Potatoes
Other food crops
Total
Meat products
Catlle and buffalo meat
Sheep and goat meat
Chicken meat
Other poultry
Pigmeat
Other meat
Total Meat
Other Livestock Products
Honey
Milk
Eggs
Total livestock products
Fisheries
Aquaculture (by type of fish)
Capture fisheries (by type of fish)
Total Fish and aquatic products

36

Intermediate
use
Quantity (000
tonnes)

Environmental variables
Changes in inventories
Total (000
tonnes)

of which: postharvest losses

(000 tonnes)

Land use
(000 ha)

Net
Change
(000 ha)

Use of Irrigated
Water

GHG emission
(CO2 eq.)
(Gigagrams)

Table 3.7 SEEA AFF Combined presentation: Sustainable use of environmental assets

Environmental asset variables

Ouput/Domestic
production
Production Quantity
(000 Tonnes)

ACTIVITY

Land use
(000 ha)

Soil resources

of which: used
for organic
production

Water resources

Indicator of soil Use of irrigated

Water
quality (e.g.
water
abstracted as a
measure of soil
share of
carbon)
renewable
water
resources

Agriculture
Cropping
Livestock grazing
Other agricultural activity
Total Agriculture
Forestry
Plantation timber
Other forestry
Total forestry
Fisheries
Aquaculture - inland
Aquaculture - marine
Capture fisheries - inland
Capture fisheries - marine
Total Fisheries

37

Forest and
timber resources

Fish and aquatic

resources

Livestock
density
(head / ha)

Table 3.8 SEEA AFF Combined presentation: Cross industry and activity perspectives

Economic variables

ACTIVITY

Output /
Intermediate
Domestic
consumption
production
Gross
Value
Production (Million SLC)
Value (Million
SLC)

Subsidies
Value
(Million SLC)

Environmental variables

Gross fixed
Value added
Exports
Imports
capital
Employment
formation
Currency
Value
Value
Value
(000 people)
(Million SLC) (Million SLC) (Million SLC) (Million SLC)

Agriculture
Cropping
Livestock grazing
Other agricultural activity
Total Agriculture
Forestry
Plantation timber
Other forestry
Total forestry
Fisheries
Aquaculture - inland
Aquaculture - marine
Capture fisheries - inland
Capture fisheries - marine
Total Fisheries
Total Agriculture, Forestry and Fisheries
Total Economy

38

Land use
(000 ha) Net
Change
(000 ha)

Use of Irrigated
Energy use in
Water
agriculture
(Terajoule)

GHG emission
(CO2 eq.)
(Gigagrams)

68. In the columns of the combined presentations three broad groupings of information
have been suggested across the four tables economic variables, consumption
variables, and environmental variables. Each of the variables chosen emerges from
different base accounts. It is here that the strength of the SEEA AFF framework
emerges since the use of common classifications and structures facilitates the
integration of this information in a flexible manner with the understanding that the
data has been assured as coherent and consistent by virtue of compilation through the
base accounts.
69. While organizing information on a large number of variables, the combined
presentations shown here only provide data for one time period, or potentially for an
average over a number of years. In addition to this structural information, time series
data is likely to be required thus creating a three dimensional data set. This is likely to
be best managed in a database setting. In this context the combined presentation may
be particularly helpful in giving a sense of the most useful content of an output
database and the way in which such a database might be structured.
70. A particular role of combined presentations should be to draw out variables that are
relevant to the derivation of indicators. Indeed the discussion of a combined
presentation should aid in the design and selection of indicators of the environmental
sustainability of agricultural, forestry and fisheries activity. To derive indicators it
may be relevant to incorporate additional data, such as population data, that does not
pertain to any particular field in the combined presentation but is nonetheless very
relevant.
71. The combined presentations are also structured to only feature one level of spatial
aggregation. It may be at national level or at a sub-national or multi-national level.
The facility to look at multiple spatial areas e.g. all sub-national regions in a
country - may be relevant, particularly in relation to the sustainability of
environmental assets. Of course, in order to compare between spatial areas, e.g.
between sub-national regions or between countries, additional layers of information
will be needed.
NB: Some of the variables presented in Tables 3.5-3.8 require further discussion, particularly
concerning indicators of environmental assets. The intention here is to demonstrate the
potential place and relevance of such indicators.

3.6 Aggregates and agri-environmental indicators

72. Aggregates and indicators are the summary measures that emerge from an accounting
framework and provide indications of trends and structural changes. Given the
comprehensive and internally consistent nature of accounting, all accounting tables
are designed to provide aggregates (for example total water use, total wheat
production) with the aggregates conforming to the accounting boundaries that are
chosen.
73. Further, since accounting frameworks have embedded relationships between
variables for example between production and intermediate inputs and between
income and assets it is possible derive indicators directly from the accounting tables
themselves. Examples of these accounting indicators include gross domestic product
and net saving.

39

74. These aggregates and accounting indicators may also be compiled and presented at
various levels of classification, such as by industry or institutional sector, depending
on the data available. In cases where data are organized in a table following a
structured classification (e.g. production data classified by product or industry) it is
also possible to develop descriptive statistics that highlight the structure of an
economy or set of economic activities for example statistics showing the proportion
of total agricultural output attributable to rice production.
75. All of these types of aggregates and indicators can be derived directly from base
accounts. Since base accounts pertain to specific data domains it is most common for
indicators to be limited to specific data domains. Thus, there will commonly be
indicators such as the share of water use by agriculture, net GHG emissions
attributable to agriculture, agricultural shares of GDP and employment. From this
perspective, the addition of base accounts to organize information within a given data
domain may seem to provide limited additional value. That is, the trends and
relationships demonstrated by such within-domain indicators are unlikely to be
significantly affected by placing the underlying data and statistics within a supply and
use table or asset account.
76. Where the SEEA approach generally, and the SEEA AFF approach in particular,
provides significant value from an indicator perspective is when data are compared
across domains. One of the main rationales for the SEEA is to facilitate the
comparison of data across domains particularly in comparing environmental stocks
and flows to economic data such as production. Commonly however, without the use
of common measurement boundaries and classifications, many otherwise reasonable
comparisons may be misleading or flawed.
77. These indicators are generically referred to in the SEEA as environmental ratio
indicators. Section 6.4 of the SEEA Central Framework provides an overview of the
various types of environmental ratio indicators including productivity and intensity
ratios, decoupling ratios and polluter pays indicators. Environmental ratio indicators
are of particular relevance for the SEEA AFF since it is often the intensity of use of
environmental inputs (e.g. water, energy, land, fertilizers, pesticides) relative to
agricultural production that is of highest policy interest. This is in contrast to
information on the total amount of water, energy, land, etc. used in agricultural
activities.
78. One aim of the SEEA AFF is to provide the conceptual basis for an integrated, multidomain dataset pertaining to agricultural activities. The nature of the conceptual basis
should ensure that environmental indicators can be derived meaningfully and also
that work towards filling data gaps (and hence deriving additional indicators) may be
completed in a considered and well-framed manner.
79. While a set of SEEA AFF indicators is not proposed, it should be clear from the
structures of the combined presentations that the derivation of certain environmental
ratio indicators has been considered. Thus, the derivation of intensity indicators
linking water use, fertilizer use, energy use, GHG emissions and land use to
agricultural production, ideally at the product level, is envisaged in the design of a
combined presentation. Further, utilizing the link between the supply and demand for
each product, these intensity indicators may be linked to consumption and calorie
intake rather than just production. Analysis of these types of ratios may provide
insights for food production and distribution policy.
80. The discussion above considers the cross-domain dataset to comprise different
economic and environmental variables (production, trade, consumption, land use,
water, energy, etc). However, as the SEEA AFF list of data domains makes clear,
there is also a challenge, in effectively comparing stocks and flows across the
domains of agriculture, forestry and fisheries. Often, the data in each of these

40

domains is not compiled following similar methods and classifications and hence
analysis of the trade-offs between these broad agricultural activities is difficult. One
of the ambitions of SEEA AFF is to apply the same accounting concepts and
principles across these three activities and hence facilitate investigation and
discussion on cross cutting topics such as land use, water use and relative
contributions to the provision of food, fibre and materials.
81. One ambition in not providing a set of SEEA AFF indicators is to encourage the
principle that SEEA AFF forms an underlying multi-purpose data set that can be used
to support multiple indicators sets and a variety of analysis. For example, while
SEEA AFF may be well suited to supporting a generic set of agri-environmental
indicators, it should also be relevant in providing information for a broader set of
sustainable development indicators, or sets of indicators on food security, for
example. In this light SEEA AFF need not harness all potential information relevant
to agriculture but might provide the firm basis for the co-ordination of the vast
majority of relevant economic and environmental information.
82. Although no specific set of indicators is included, mention is made here of potential
links between SEEA AFF based data and three data and indicators sets. First, part of
the discussion of the UN post-2015 development agenda involves the articulation of a
set of sustainable development goals (SDGs). For each goal, relevant targets and
indicators will be described. Given that a number of the proposals for SDGs have
links to agriculture, forestry and fisheries (in terms of various environment, social and
economic goals), it is relevant to consider that indicators for the final SDGs may be
sourced from SEEA AFF based datasets.
83. Second, the FAO, jointly with the OECD and Eurostat, has established a set of agrienvironmental indicators. Most of these indicators can be sources from an SEEA AFF
based dataset. Further, subsequent review of the indicator set may be supported by
consideration of the SEEA AFF framework.
84. Third, as part of the FAOs Global Strategy to Improve Agricultural and Rural
Statistics, a core minimum set of data has been proposed. The minimum set covers
economic, social and environmental aspects. A comparison of the minimum set and
the SEEA AFF framework suggests that a large proportion of the minimum set would
be included in a SEEA AFF dataset covering most of the economic and
environmental data.

41

Chapter 4: Definitions and methods for SEEA AFF base accounts

4.1 Introduction
1. This chapter describes the SEEA AFF base accounts. For each base account there is a
description of (i) the purpose and scope of the base account and its links to other
components; (ii) the definition of accounting entries, specific accounting treatments
and relevant classifications; and (iii) areas of possible extension.
2. Throughout this chapter the underlying accounting principles and treatments of the
SNA and the SEEA Central Framework apply and any interpretation of accounting
matters should refer to those statistical standards.
3. The implementation of the SEEA Central Framework is to be flexible and modular
responding to the available resources and the relevant policy requirements within a
country. In the context of the SEEA Central Framework the interpretation of modular
concerns which accounts and themes/topics should be given priority for example
whether priority should be given to energy accounts, environmental protection
expenditure accounts or land use account. Since the SEEA AFF takes a cross cutting
activity perspective the implementation of SEEA AFF cannot be quite as modular and
ideally all of the relevant base accounts would be compiled in parallel.
4. Of course, such extensive compilation of a range of base accounts even where the
focus is on agricultural, forestry and fisheries activity rather than the whole economy
is likely to be a significant undertaking. Consequently, it will be relevant to (i)
undertake a considered planning exercise to ensure a matching of expectations and
capacity; and (ii) to focus initially on a limited number of data domains that are of
high policy relevance and for which data are reasonably readily available. By
commencing with a more limited scope it is likely that appropriate development of
skills and accounting processes will be gained. The main lesson from those who have
developed environmental-economic accounts over the past 20 years is that the most
beneficial approach is to learn by doing.
5. In that spirit, this chapter and the next provide a starting point for those seeking to use
an accounting approach to organizing information for the analysis of agricultural
activities. Over time, as experience in this area advances, further guidance and
supporting material will be developed.
4.2 Physical flow account for Food crops
4.2.1 Measurement purpose and scope
6. The physical flow account for Food crops records the supply and use of food crop
products in physical terms, generally tonnes. For each product, for example rice, the
table records the total supply from the agriculture industry and from the rest of the
world; the total use of that raw product (e.g. intermediate consumption to the
manufacturing sector or to export); the total supply of the processed product; and
finally the total use of the processed product, including for household consumption.
7. The recording of supply and use flows of food crops in both raw and processed forms
enables a link to be made to household consumption of food products and hence the
information can support assessment of food security and nutrition. Importantly, the
use of a supply and use approach ensures the internal consistency and coherence of
data that is often collected from multiple data sources. The confrontation and
reconciliation of data from different data sources is an important role played by
accounting frameworks.

42

8. The conceptual scope of the physical flow account is all food crops. However, in
most countries the set of food crops is very large, often greater than 100.
Consequently, the compilation of a physical flow account covering more than 100
products in both raw and processed forms is likely a considerable undertaking.
Further, many of those products are likely to be relatively unimportant in assessing
overall food production, food security and environmental impacts at the national
level.
9. Given this background, the SEEA AFF suggests that countries develop physical flow
accounts for food crops with a focus on selected products (roughly 8-10) that are
considered the most important for the country. The selection of the most important
food crops is not straightforward however. Products may be important because of
their share in total food production, their contribution to nutrition, their share of
imports and exports, their use of environmental inputs (e.g. land, water) or other
reasons.
10. Nonetheless, this narrower focus on selected products is considered preferable for the
purposes of applying the SEEA AFF approach at national level since it forms the
basis for drawing together a wide range of data and also promoting discussion on
differences between key products. An alternative approach of organizing data by
major product groupings (e.g. cereals, roots and tubers, etc) may provide data that are
more comparable across countries but which are less meaningful at individual country
level.
11. In some cases, particularly for maize, there is increasing growing of the commodity
for energy rather than food and indeed individual species are grown for specific
purposes. Where data allow, it may be relevant to distinguish between food and nonfood production of specific crop types. However, if only production data can be
distinguish it is likely to be more useful to record total production for all purposes and
record the appropriate allocations to different uses.
12. While the intent is to focus on key products, there is also the intention that totals for
all food crops be compiled for particular variables such as total production, total
imports and exports and total household consumption. These estimates are relevant to
the compilation of combined presentations are also to keep a regular eye on changing
structural patterns in the supply and use of food crops. For example, where the total
production of other crops (i.e. the difference between total production of food crops
and production of the selected food crops) becomes large this may point to the need
to consider changes to the listing of key products. In other words, the initial selection
of key products may need to change over time.
13. Physical flow accounts for food crops can be compared to information contained in
food balance sheets. Food balance sheets have been developed in many countries and
internationally by FAO to determine the composition of the food consumed. They are
based on similar principles to the physical flow account described here but apply
different definitions of supply and use. In the SEEA AFF, supply and use are defined
to be consistent with the same concepts as applied in standard economic accounts and
hence can permit more straightforward comparisons with economic data, including
data in input-output tables.
14. The physical flow accounts described here will, in broad terms, be well-aligned with
the broader accounts known as material flow accounts and physical input-output
tables that record all flows within an economy in physical terms. Information from
such accounts may be of use in the compilation of physical flow accounts for food
crops.
15. It is noted that physical flow accounts for individual products or groups of products
are not highlighted within the SEEA Central Framework. Section 3.6.2 summarises

43

the possibility of physical flow accounts but no tables are described or general
measurement advice provided, aside from noting the benefit of applying the standard
boundaries and definitions for natural inputs, products and residuals outlined
elsewhere in the SEEA Central Framework (see SEEA Central Framework 3.232).
4.2.2 Accounting entries
16. The physical flow account for food crops is shown in Table 4.1. It records the flows
in physical terms of selected crop commodities. The account is divided into two parts:
the supply table and the use table. For each food crop, the total supply must be equal
to its total use. The selection of products in the supply and use table is purely
indicative and does not represent a standard set of food products. As discussed above,
the selection of the most important and policy relevant food products is a matter for
consideration at country level.
Table 4.1: Physical flow account for food crops (tonnes)
SUPPLY TABLE

Imports

Domestic production

Gross production

Harvest losses

Agricultural
industry

Manufacturing
industry

Total Supply

Total
output

Selected products
Maize (raw)
Maize (processed)
Rice (raw)
Rice (processed)
Wheat (raw)
Wheat (processed)
Palm oil (raw)
Palm oil (processed)
Sugar (raw)
Sugar (processed)
Potatoes (raw)
Potatoes (processed)
Other food crops (raw)
Other food crops (processed)

USE TABLE

Intermediate consumption
Agricul. Agricul.
Ind. (Feed) Ind.(Seed)

Generation of
energy
Food
Non-food
products
Processing processing

Household consumption
of which:
Food
Food
Other
consumption waste
uses

Changes in inventories Exports

PostOther
harvest changes in
losses
inventories

Selected products
Maize (raw)
Maize (processed)
Rice (raw)
Rice (processed)
Wheat (raw)
Wheat (processed)
Palm oil (raw)
Palm oil (processed)
Sugar (raw)
Sugar (processed)
Potatoes (raw)
Potatoes (processed)
Other food crops (raw)
Other food crops (processed)
not applicable

17. A key intent in the development of the SEEA AFF is to distinguish between
agricultural activity and other economic activity (particularly manufacturing) such
that clear connections can be made between the various outputs and inputs related to

44

Total Use

agricultural activity and information in standard economic data sets. This intent is
clearly reflected in the physical flow account for food crops where production of the
agricultural industry (ISIC A) and the manufacturing industry (ISIC C) is
distinguished and a distinction is made between raw and processed products.
18. Making this distinction in the context of food crops is particularly important since one
ambition in the SEEA AFF is to make the connection between the production of food
crops and the consumption of food by households. Since most food crops are
processed before household consumption and since there are often a number of
alternative uses of food crops e.g. the use of maize for food, animal fodder and the
generation of energy it has proved useful to recognize both raw and processed
products in the SEEA AFF design.
19. While making the distinction between raw and processed commodities is
conceptually straightforward, in practice understanding the relationships between raw
commodities and the processed commodities into which they are formed is a
significant challenge. To facilitate this work commodity paths or trees are often
established to map the linkages between different commodities. Establishing and
maintaining these paths is challenging work.
20. To enable the recording of both raw and processed versions of each food crop it is
necessary to determine a common basis for recording. The proposed approach taken
is to determine the raw commodity equivalent weight for each processed product. For
example, for the food crop wheat the relevant weight of the processed product bread
is not the total weight of the bread but only the wheat component i.e. the weight of
the raw (unprocessed) wheat required to produce the bread. This basis of recording
allows a direct connection to be made between agricultural production and food
consumption.
21. At the same time, in the determination of raw commodity equivalent weights it is
necessary to take into account the actual proportion of the raw commodity used as
input to the processing stage. In cases where there are multiple uses made of harvest
raw commodities for example the use of sugar cane plant material for both
producing sugar and energy it is important that appropriate allocations to the
different uses be made that are in turn constrained to the total weight of raw
commodity produced.
Supply table entries
22. To make the distinction between agricultural and other activities the structure of the
supply table distinguishes between the total supply of raw and processed
commodities. The supply of raw commodities relates to production by the agricultural
industry, while the supply of processed commodities relates to production by the
manufacturing industry. The allocation of production to different industries is based
on assumed relationships between products (commodities) and industry. The intent is
to recognize that when aligning to standard measures of economic activity there
should be a clear separation of products and industries reflecting a value-added chain
between primary producers, secondary and subsequent activities and final consumers.
23. It is not the intent of the SEEA AFF to completely articulate the value-added or
supply chain associated with agricultural production but rather to identify the
boundary around the first step in the chain from the agricultural industry to other
producers. Most commonly the second step in the chain will be the manufacturing
industry but in practice there will be many other players (transport, wholesale, retail
industries for example) that might also be added to complete a more fulsome supply
and use table for each commodity. In SEEA AFF these additional steps are ignored
and hence the physical flow account for food crops reflects a somewhat stylized link

45

between primary production and final consumption and other uses. While stylized,
the account does provide a basis for integration with economy wide supply and use
tables and input-output tables, which may be relevant in, for example, the analysis of
the agro-food industry or tracking the chain of prices through the production and
margin based industries.
24. Total supply is then given in two equations:
Total Supply of Raw Commodity = Agricultural Industry Production +
Imports
Total Supply of Processed Commodity = Manufacturing Industry Production
+ Imports
25. Domestic production - Agricultural industry: This entry relates to total domestic
production and include non-commercial production and production from kitchen
gardens. Production estimates should be reported at the farm level and include
production for sale (including barter) and production consumed on own-account by
the producing unit, for example, subsistence agricultural production.
26. Domestic production excludes harvesting and threshing losses and the part not
harvested for any reason. However, for some analytical purposes (e.g. studies of
productivity and efficiency) it may be relevant to include measures of gross
production before such losses occur and hence columns are included in the physical
flow account for food crops to record gross production and harvest losses.
Domestic agricultural production is defined as: Net output (farm gate) =
Gross production Harvest losses
27. Domestic production - Manufacturing industry: The Manufacturing industry in the
physical flow account for food crops is assumed to relate to economic units involved
in the manufacture of food, beverages and tobacco products and relevant non-food
products.
28. Estimates of domestic production of the manufacturing industry are derived in the
physical flow account for food products on the basis of assumptions regarding the
source of products that are used in the final consumption of food and other uses.
Thus, three final uses are considered as being supplied by the manufacturing industry
and hence are assumed to reflect production of the manufacturing industry as
allocated to the particular raw commodity. The final uses are (a) Household
consumption: Food, (b) Household consumption: Other uses and (c) Changes in
inventories. These items are defined below under Use table entries.
29. It is noted that the estimate of domestic production for the manufacturing industry is
matched by entries reflecting the intermediate use of the raw commodity by the
manufacturing industry (see Use table entries). The estimate for intermediate
consumption for food processing also includes amounts that are used in the
manufacture of food products that are not attributed to the processed commodity in
question.
30. Imports: Imports of food crops consist of purchase, barter, or receipt of food crop
products by residents from non-residents. Imports should be recorded in raw
commodity equivalent.
Use table entries
31. Intermediate consumption - Agricultural industry Feed: This entry refers to the
quantity of the product used for feeding to livestock and poultry during the reference

46

period, whether the feed is domestically produced or imported. The quantities are
assumed to be raw.
32. Intermediate consumption - Agricultural industry Seed: This entry refers to the
quantity of the product retained for sowing or planting (or generally used for
reproduction purposes, e.g. sugar cane planted, potatoes for seed, whether the product
is domestically produced or imported). This entry also includes the quantities used for
sowing or planting the area of crops harvested green for fodder (e.g. green peas, green
beans, and maize for forage). The quantities are assumed to be raw.
33. Intermediate consumption - Generation of energy products: Refers to the use of raw
commodities for the generation of energy products (including fuel, heat or electricity)
by economic units.
34. Intermediate consumption - Food processing: Refers to the use of raw commodities
by economic units that deal with the physical or chemical transformation of raw
commodities into food and beverage products.
35. Intermediate consumption - Non-food processing: Refers to the use of raw
commodities in the processing of non-food products.
36. Household consumption Food: This entry refers to the total quantity of the product
consumed as human food. It includes the product in question, as well as any product
derived therefrom as a result of further processing. Food from maize, for example,
comprises the quantity of maize, maize meal and any other products derived
therefrom available for human consumption. All food for human consumption is
assumed to be directly consumed from the agricultural or manufacturing industry and
thus the movement of quantities of food products through supporting industries, for
example wholesale and retail networks, are not explicitly recorded.
37. The aggregate for household food consumption includes amounts that are purchased
by households or are otherwise obtained. For particular policy and analytical
purposes it may be relevant to separately measure the amount of household food
waste i.e. the amount of food that is discarded by households.
38. Household consumption Other uses: This entry represents a catch-all of other uses
of food crop products.
39. Changes in inventories - Post-harvest losses: This entry refers to quantities of the
product lost through wastage during the year at all stages between the point at which
agricultural production is recorded and final consumption, i.e. losses in storage and
transportation. Losses occurring before and during harvest should be recorded in
Harvest losses. Waste generated from final consumption that occurs in households is
also excluded (it is included in household consumption). Quantities lost during the
transformation of raw products into processed products are taken into account in the
assessment of respective extraction/conversion rates. Distribution wastes can be
considerable in countries with hot humid climate, difficult transportation and
inadequate storage or processing facilities. This applies to the more perishable
foodstuffs, and especially to those that must be transported or stored for a long time
in a tropical climate.
40. Changes in inventories - Other: This entry reflects changes in the holdings of food
crop products occurring during the reference period at all stages between production
and final sale of processed products. It comprises changes in government stocks, in
inventories with manufacturers, importers, exporters, other wholesale and retail
merchants, transport and storage enterprises and in inventories held on farms. It
excludes changes in inventories due to post-harvest losses.

47

41. Exports: Exports of food crops consist of sale, barter, or transfer of food crop
products by residents to non-residents. Exports should be recorded in raw commodity
equivalent.
4.2.3 Measurement issues and possible extensions
42. In the measurement of the physical flows of food crops there are some particular
measurement issues that require some remarks. First, it is explicitly clarified that the
production of food for consumption by the farmers household, commonly known as
subsistence agriculture, should be included in the scope of the accounts. Depending
on the product or the particular circumstances within the country it may be relevant to
provide an estimate of subsistence production separately from other, commercial
production.
43. Second, where food production or harvesting is undertaken within forests, the output
should be recorded in the physical account for food crops, or in other relevant
production tables (e.g. meat production) aligned with the particular product that has
been harvested or produced. As structured it is not envisaged that this production
would be included under the accounts for forestry which is limited to the production
of timber. Depending on the country, for analytical purposes it may be relevant to
separately identify food and other non-timber production from forest areas nonwood forest products.
44. Third, many foods crops are produced from plantations and similar arrangements
such as vineyards and orchards. Information on the plantations themselves, either in
terms of area or number of plants, may be organized in the form of asset accounts.
That is, information on the opening stock, additions and reductions in stock and
closing stock may be integrated following the general form of an asset account shown
in Table 3.3. These assets are part of the general class of cultivated biological
resources. Information on the area of plantations may also be included as specific
rows within the broader land use account described in section 4.15.
45. The physical flow accounts for food crops may be extended in a number of directions
depending on data availability and analytical requirement. An example is
incorporating information on the type of production of specific crops e.g. irrigated
and non-irrigated rice production.

4.3 Physical flow account for Non-food crops

4.3.1 Measurement purpose and scope
46. The physical flow account for Non-food crops records the supply and use of non-food
crop products in physical terms, generally in tonnes. For each product the account
records the total supply from the agricultural industry and from the rest of the world,
and the total use of this supply within the domestic economy and by the rest of the
world.
47. Unlike the physical flow account for Food crops (section 4.2), only flows relating to
raw non-food crop products are included. Thus, the supply and use of processed
products based on non-food crops are not recorded. This difference in scope is
because in the case of non-food crops there is no specific interest from the
perspective of SEEA AFF in quantities ultimately used for human consumption. If
this connection were of interest then the physical flow account for Non-food crops
may be extended along similar lines to the physical flow account for Food crops.

48

48. Recording flows of non-food crops is an important part of ensuring that all
agricultural products are included within the scope of SEEA AFF and hence a full
attribution of environmental inputs such as land use and water use can be made.
Structural changes in the mix of cropping, for example between food crops and crops
for fodder, should also be tracked to better understand the implications of changes in
the mix of food consumption towards a higher share of meat and livestock products.
49. The four main non-food crop groups are defined following the FAO Definition and
Classification of Commodities Manual (1996):

Vegetable fibres. These are obtained from annual and perennial plants and are
used to produce thread and yarn that are manufactured into fabrics.

Fodder crops. These are crops that are harvested primarily for animal feed. By
extension, harvest from natural grassland and pastures are included whether they
are cultivated or not. FAO datasets include both temporary and permanent crops.
Permanent fodder crops relate to land used permanently (for five years or more)
for herbaceous forage crops, either cultivated or growing wild, and may include
some parts of forest land if it is used for grazing. Temporary crops are instead
grown intensively with multiple cuttings per year.

Rubber. Natural rubber is obtained from the Par rubber or caoutchouc tree.
Natural rubber is a milky fluid latex which exudes when the trunk of the tree is
cut (tapped) and coagulates on exposure to the air. The dried latex is treated with
suplhur at high temperatures in a process known as vulcanization to increase the
desirable properties of the final product, including elasticity, strength and
stability.

Tobacco. Tobacco is an annual plant that is cultivated for its narcotic leaves,
which are used for smoking, chewing or sniffing. The main varieties include
Oriental, Maryland, Burley and Tropical. The partially dried leaves are
fermented, cured and then further dried by various methods, including sun
curing, air curing, flue curing and fire curing.

50. Within the first two groups of vegetable fibres and fodder crops, countries are
encouraged to identify those specific crops that may be of particular importance and
analytical interest.
51. As discussed in section 4.2, the boundary between food and non-food crops has been
determined on the basis of whether a particular product can be used for human
consumption. If so, then the product is considered a food crop even though a majority
of its supply might be used for non-human consumption purposes. For example,
maize is commonly used for both animal fodder and as a source of energy but since it
is also used for human consumption it is considered a food crop.
4.3.2 Accounting entries
52. The physical flow account for non-food crops is shown in Table 4.2. The account is
divided into two parts: the supply table and the use table. For each non-food crop, the
total supply must be equal to its total use.

49

Table 4.2: Physical flow account for non-food crops (tonnes)

SUPPLY TABLE

Domestic production
Gross production

Imports

Harvest losses

Total Supply

Agricultural industry Total output

Products
Vegetable fibres
Fodder crops
Rubber
Tobacco

Intermediate consumption

USE TABLE

Feed

Processing

Other uses

Household
Changes in inventories
consumption Post-harvest Other
losses
changes

Exports

Total Use

Products
Vegetable fibres
Fodder crops
Rubber
Tobacco

Supply table entries

53. Domestic production: Agricultural industry: This entry relates to the total domestic
production including non-commercial production and production from kitchen
gardens. Unless otherwise indicated, production is reported at the farm level.
Production excludes harvesting and threshing losses and the part not harvested for
any reason. Domestic production is described by the following:
Net output (farm gate) = Gross production Harvest losses
54. Imports: Imports of non-food crop products consists of purchase, barter, or receipts of
these products by residents from non-residents. It includes commercial trade, donated
quantities, and estimates of unrecorded trade. As general rule, figures are reported in
terms of net weight, i.e. excluding the weight of container.
Use table entries
55. Intermediate consumption - Feed: This entry refers to the quantity of the product used
for feeding to livestock and poultry during the reference period, whether the product
is domestically produced or imported. The estimated quantity of feed should include
both amounts purchased from other economic units and amounts harvested for use
within the same establishment.
56. Intermediate consumption Processing: This entry refers to the quantity of non-food
crop products transformed into other products. It includes, for example, the quantity
of tobacco processed into cigarettes.
57. Intermediate consumption - Other uses: This entry refers to quantities of non-food
crop products used by other economic units (excluding households) other than for
feed or processing.
58. Household consumption: This entry refers to the quantity of the raw non-food crop
product consumed by households during the reference period.
59. Changes in inventories Post-harvest losses: This entry refers to quantities of the
product lost through wastage during the year at all stages between the point at which
agricultural production is recorded and final consumption, i.e. losses in storage and
transportation. Losses occurring before and during harvest should be recorded in
Harvest losses. Waste generated from final consumption that occurs in households is
also excluded (it is included in household consumption). Quantities lost during the

50

transformation of raw products into processed products are taken into account in the
assessment of respective extraction/conversion rates. Distribution wastes can be
considerable in countries with hot humid climate, difficult transportation and
inadequate storage or processing facilities.
60. Changes in inventories - Other: This entry reflects changes in the holdings of nonfood crop products occurring during the reference period at all stages between
production and final sale of processed products. It comprises changes in government
stocks, in inventories with manufacturers, importers, exporters, other wholesale and
retail merchants, transport and storage enterprises and in inventories held on farms.
61. Exports: Exports of non-food crops consist of sale, barter, or transfer of non-food
crop products by residents to non-residents. Exports should be recorded in raw
commodity equivalent.
4.3.4 Measurement issues and possible extensions
62. There are no significant measurement issues for non-food crops beyond those
discussed earlier in this section. For clarification however it is noted that information
on the production of crops for bio-fuel will generally be included in the accounts
where the relevant commodity is included. Thus, since maize is most commonly a
food crop, the production of maize for biofuel would be included within scope of the
food crop flow account. A related treatment is true for timber harvested for energy
production which is included in forestry production.
63. If production of some commodities can be clearly separated by use type then a
separate allocation may be possible for example, maize grown for biofuel purposes
may be included as part of non-food crops. More generally, it may be of interest to
gather together in a single table the information for all biofuel sources.
64. The production of hay and other fodder for livestock may present an interesting
measurement challenge. In all cases where hay and fodder crops are harvested for
sale to other economic units the production should be included as part of non-food
crops. Where the hay and fodder is harvested but retained for use on the same farm, it
is recommended that this production also be included as part of both the production
of non-food crops and the intermediate consumption of that output by the agricultural
industry. However, where pastures are deliberately improved or fodder crops grown
for subsequent grazing by livestock, the production of additional plant material
should not be considered additional production, although the costs of any inputs (e.g.
fertilizers, seed, water) should be included in other accounts as appropriate.

4.4 Physical flow accounts for Livestock products

4.4.1 Measurement purpose and scope
65. The physical flow account for livestock products records the supply and use of
livestock products in physical terms, generally tonnes. For each product the account
records the total supply from the agricultural industry and from the rest of the world,
and the total use of this supply within the domestic economy and by the rest of the
world.
66. The conceptual scope of the physical flow account is all livestock products. However,
a main focus of this account in the SEEA AFF framework is the production and use
of livestock products for consumption as food. With this in mind the general
assumption underpinning the design of the account is that livestock products are not
significantly transformed from the point of production by the agricultural industry to

51

the point of consumption by households. Thus, both domestic production and

household consumption are considered to be of the same product. Where significant
processing of livestock products takes place before household consumption this
should be treated in the account as the intermediate consumption of the
manufacturing industry and, hence, the link to household consumption is not
recorded.
67. As for food crop products, focus should be placed on recording the most important
livestock products as determined by the country. It is recommended that particular
emphasis is placed on covering the use of livestock products for nutrition to permit as
full as description as possible of the composition of the diet of a country by type of
agricultural product.
68. Although the proposed focus for the SEEA AFF at the product level is on products
for food consumption, it is recognized that there are a range of other livestock related
products which generate income and associated economic activity for those raising
livestock. Examples include the production of wool and leather, trade in live animals
(often for export), the use of animals as breeding stock, and activity associated with
hunting wild animals. It is also noted that the production boundary of the SNA and
hence the SEEA includes illegal production and thus activity associated with
poaching and illegal acquisition of products such as ivory are conceptually in scope
of the SEEA AFF. All of these different examples may form important parts of the
SEEA AFF in a particular country depending on their relative size and policy
importance.
4.4.2 Accounting entries
69. The physical flow account for livestock products is shown in Table 4.3. It records the
flows in physical terms of the main livestock products. The account is divided into
two parts: the supply table and the use table. For each livestock product, the total
supply must be equal to its total use.
Table 4.3 Physical flow account for livestock products (tonnes)
SUPPLY TABLE
Domestic
production

Imports

Total Supply

USE TABLE
Intermediate
consumption

Household consumption
Food
of which:
consumption Food waste

Changes in inventories

Exports

Post-harvest Other
losses
changes

Products
Cattle meat
Buffalo meat
Sheep meat
Goat meat
Pig meat
Chicken meat
Duck meat
Goose meat
Turkey meat
Pigeon and other bird meat
Total meat
Honey
Milk
Eggs

Supply table entries

70. Domestic production - Agricultural industry: This entry includes total meat
production from both commercial and farm slaughter. Data are given in terms of
dressed carcass weight, i.e. excluding offal and slaughter fats. Production of beef and
buffalo meat includes veal; pig meat includes bacon and ham in fresh equivalent.
Poultry meat includes meat from all domestic birds and refers, wherever possible, to

52

Total Use

ready-to-cook weight. This entry also includes production of other livestock products
including milk and other dairy products, eggs and honey. The production and sale of
live animals is excluded from scope.
71. Imports: Total quantity of meat (by type of animal) and other livestock products
imported from the rest of the world into national boundaries. Quantity is expressed in
metric tonnes and refers to net weight, excluding any sort of container. Imports of
live animals are excluded from scope.
Use table entries
72. Intermediate consumption: This entry covers the use of livestock products by other
industries as inputs to the production of other products, excluding the production of
food products. Consumption of livestock products embedded in food products is
included in Household consumption Food.
73. Household consumption Food: This entry includes the quantity of all livestock
products consumed by households level as source of food.
74. The aggregate for household food consumption includes amounts that are purchased
by households or are otherwise obtained. For particular policy and analytical
purposes it may be relevant to separately measure the amount of household food
waste i.e. the amount of food that is discarded by households.
75. Changes in inventories Post-harvest losses: This entry includes losses of livestock
products during supply, distribution, and storage.
76. Changes in inventories Other changes: This entry comprises changes in inventories
occurring during the reference period at all stages between agricultural production
and retail, excluding post-harvest losses. It covers changes in government stocks, in
inventories with manufacturers, importers, exporters, other wholesale and retail
merchants, transport and storage enterprises and stocks on farms.
77. Exports: Total quantity of meat (by type of animal) and other livestock products
exported to the rest of the world. Quantity is expressed in metric tonnes and refers to
net weight, excluding any sort of container. Exports of live animals are excluded from
scope.
4.4.3 Measurement issues and possible extensions
78. A common challenge in accounting for the production of meat and livestock products
is the choice of measurement units. Commonly different measurement units will be
used at different stages of the production cycle e.g. a focus on numbers of livestock
before slaughter and the carcass weight afterwards. This presents a challenge for the
physical flow accountant in terms of balancing the supply and use of meat products.
Further there a number of variations in the measurement of weights including boned
and boneless weights, warm or cold weights, etc. The units may also vary by type of
livestock. Further advice on this issue is provided in the relevant section of chapter 5
within the general comment that for the purposes of the physical flow account for
meat products the focus should be on the carcass weight of the animal immediate
following slaughter.
79. It is noted that some livestock products may be obtained from forest areas for
example bush meat or from wild animals, including via illegal activity. As
appropriate and relevant, this production should be included in the livestock product
physical flow account. Where animals are hunted professionally, perhaps for fur or
skin, these harvests should also be included in the production of livestock products.
However, where animals are hunted as part of recreational activity (for example, on a

53

large safari hunt) this activity should not be considered the production of livestock
products and instead is considered a recreational activity within the broader economic
supply and use context.
80. In terms of extensions to the livestock product accounts there may be interest in
distinguishing between extensive and intensive livestock production to the extent that
both production types are of some significance for a given livestock type within a
single country.

4.5 Asset accounts for livestock

4.5.1 Measurement scope and purpose
81. The asset accounts for livestock provide information on the total number of livestock,
by type of animal, and changes in the number of livestock over an accounting period.
This information may be of interest in understanding the carrying capacity of
agricultural areas with respect to livestock (e.g. number of cattle per hectare) and in
understanding the expectations with respect to the production of livestock products
and the potential environmental impacts given the stock of livestock.
82. The conceptual scope of the asset account is cultivated livestock i.e. those animals
that are bred and managed as a process of production by economic units. Cultivated
livestock will tend to provide the bulk of the livestock products of economic interest
and will tend to have the greatest relevance in assessing environmental impacts.
83. For each type of animal all animals are included regardless of age, sex or purpose
raised. The asset account should therefore provide a complete summary of livestock,
increases due to breeding and imports and decreases due to slaughter, natural death
and disease, and exports.
4.5.2 Accounting entries
84. The asset account for livestock is shown in Table 4.4. It records the opening and
closing stock of each type of livestock and the various additions and reductions in
stock that may take place over an accounting period. In the asset account, for each
livestock type, the opening stock plus additions less reduction must equal the closing
stock.
Table 4.4 Asset account for livestock (number of livestock)
Additions to stock
Opening stock

Livestock
Other
Net growth
from the rest additions to
in livestock
of the word
stock

Type of livestock
Cattle and buffalo
Sheep
Goats
Total Sheep and Goats
Pigs
Chicken
Ducks
Geese
Turkeys
Pigeon and other birds
Total Poultry and birds

54

Reductions in stock
Total
additions

Livestock Livestock to
Other
Total
processed / the rest of reductions in
reductions
slaughtered the world
stock

Net change
Closing stock
in Stock

85. Opening stock: The opening stock records the total number of live animals (in head)
held at the beginning of the accounting period. Live animals are divided by type.
86. Additions to stock: The SEEA AFF includes three main additions to stock: (i) Net
growth in livestock, (ii) Livestock from the rest of the word, and (iii) Other additions
to stock.

Net growth in livestock reflects births of new livestock less normal losses of stock
that do not reach maturity. Normal losses of mature stock are assumed to be
processed/slaughtered and hence included in reductions in stock (see below).
Net growth in livestock may computed as follows: Net growth in livestock =
Closing Stock + Exports + Livestock Processed + Other reductions in stock Opening Stock Imports - Other additions to stock
Livestock from the rest of the word (imports) includes all live animals imported
from the rest of the word into national boundaries during the stock year taken into
consideration.
Other additions to stock records all other types of additions to stock

87. Reduction in stock: The SEEA AFF includes three main reductions in stock: (i)
Livestock processed (slaughtered), (ii) Livestock to the rest of the world, and (iii)
Other reductions in stock.

Livestock processed (slaughtered) records all animals of indigenous and foreign

origin, slaughtered within the national boundaries. All data are expressed in units
(head).
Livestock to the rest of the world (exports) includes all live animals exported to
the rest of the word from national boundaries during the stock year taken into
consideration.
Other reductions in stock records all other types of reductions in stock (e.g.
catastrophic losses due to drought or disease).

88. Net change in stock: Net change is estimated as the difference between the closing
stock and opening stock.
89. Closing stock: The closing stock reflects the number of livestock available at the end
of the accounting period. The closing stock of a given accounting period constitutes
the opening stock of the following period.
4.5.3 Measurement issues and possible extensions
90. The general focus of the livestock asset account is on animals raised for meat
production. However, ideally, a clear distinction would be made in the account
between livestock raised for different purposes e.g. cattle for meat or milk, and
sheep for meat or wool. This would allow for a much clearer understanding of the
link between production of livestock products and the underlying asset base.
91. A related extension is to identify the numbers of those livestock considered to be
breeding stock which are themselves a different type of asset within the broader set of
livestock. Also relevant may be information on the age distribution of livestock types,
while this may tend to be relatively stable over time, if information of this type were
available it may at an aggregate level point to risks around future production of
livestock products.

55

92. To align with possible extension to the set of livestock products, it may be relevant to
incorporate information on the stock of animals that supports illegal activity and,
also, changes in the stock of wild animals. A distinction between the numbers of
livestock in intensive and extensive farming system may also be useful.

4.6 Physical flow accounts for timber products

4.6.1 Measurement scope and purpose
93. The physical flow account for timber products records the supply and use of timber
products in physical terms, in cubic metres of timber. The intent is to organize data to
allow a focus on the activities of the forestry industry as distinct from the activity of
processing raw timber and manufacturing wood products. In addition one table of the
account is to record the use of timber products for energy purposes both by industry
and by households (in the form of fuelwood and charcoal).
94. To achieve these analytical intentions it is necessary to clearly distinguish between
the different activities involved. Thus, the physical flow account distinguishes
between the total supply of raw timber (in the form of round wood) and the supply of
processed timber (in the form of saw logs, pulpwood and other industrial
roundwood). Raw timber is assumed to be produced by the forestry industry and
processed timber is assumed to be produced by the manufacturing industry. The
production of processed timber is assumed to reflect the intermediate use of raw
timber.
95. The structuring of information on the physical flow of timber products is also
designed to permit comparison to information in the standard national accounts on
production and consumption and, in the context of SEEA AFF, with other activities
within agriculture, forestry and fisheries.
96. The physical flow accounts for timber products should cover all production of timber
within a country including the harvest of timber products by households for their own
consumption. No attempt is made to track the flows involved in the production of
wood products such as furniture, paper and pulp, or timber used in construction. Such
connections might be made by extending the product and industry scope of the
physical flow account. However, since the intent of SEEA AFF is to focus on the
activities of the agriculture, forestry and fisheries industries, such extensions are not
considered.
4.6.2 Accounting entries
97. The physical flow account for timber products is shown in Table 4.5. It records the
flows in physical terms of the timber products roundwood, saw logs, pulpwood and
other industrial roundwood. The production of wood fuel, including fuel wood and
wood for charcoal, is subsumed within the estimates of the production of roundwood,
and is reflected in the use of roundwood for energy purposes as intermediate
consumption by industries and final consumption by households. For each timber
product, the total supply must be equal to its total use.

56

Table 4.5: Physical flow account for timber products (cubic metres)
Domestic production
SUPPLY TABLE

Gross felling Felling residues

Total output

Imports

Total Supply

Manufacturing
Forestry industry industry
Product
Roundwood
Sawlogs
Pulpwood
Other industrial
roundwood

Intermediate Consumption

Household consumption
Changes in
inventories

USE TABLE
Generation
Manufacturing of energy
industry
products

Other uses

Energy

Exports

Total Use

Other uses

Product
Roundwood
Sawlogs
Pulpwood
Other industrial
roundwood

Supply table entries

98. Total supply for each product is estimated using the following equations:
Total Supply of Raw Timber = Forestry production of roundwood +
Imports of roundwood
Total Supply of Processed Timber = Manufacturing production of
saw logs, pulpwood and other industrial roundwood + Imports of
processed timber products
99. Generally, the measurement of supply will focus on production but there may also be
analytical interest in understanding some aspects of the logging process itself. For this
reason the supply table commences with a measure of the gross felling of raw timber
and deducts a measure of felling residuals before recording measures of production.
Commonly however, information on gross felling and felling residues is not readily
available.
100.
Gross felling: Felling is the process of downing individual trees, an element
of the task of logging. Gross felling is the volume of all trees, living or dead that are
felled. Felling includes silvicultural and pre-commercial thinning and cleanings.
There may be specific interest in the gross volume of timber felled during the period
relative to the volume of timber resources removed (which is reflected in the measure
of production).
Felling residues: Felling residues arise because, at the time of felling, a
101.
certain volume of timber resources is rotten, damaged or excess below in terms of
size requirements. Felling residues exclude small branches and other parts of the tree

57

(which are also excluded from the scope of timber resources). Estimates of felling
residues may provide important information on the nature of forestry practice.
102.
Domestic production - Forestry industry: Domestic production refers to the
total solid volume of all timber production within national boundaries. Since all
processed timber must be originally sourced from raw timber, the total volume of
timber production is equal to the production of raw timber (roundwood) by the
forestry industry.
103.
Domestic production includes production from all sources within the country
including public, private, and informal sources. It excludes the production of veneer
sheets that are used for plywood production within the same country. It is reported in
cubic meters of solid volume.
104.
Domestic production - Manufacturing industry: The domestic production of
the timber related manufacturing industries (ISIC 16) covers units engaged in the
manufacture of wood and wood products from raw timber. In the supply table, the
production estimates relate to the production of sawlogs, pulpwood and other
industrial roundwood.
Imports: Timber products (roundwood, sawlogs, pulpwood, other industrial
105.
roundwood) imported for domestic consumption or processing. It includes imports for
re-export. It excludes "in-transit" shipments. It is reported in cubic metres of solid
volume.
Use table entries
106.
Intermediate consumption - Manufacturing industry: This entry relates to the
timber related manufacturing industries (ISIC 16 and 17) covering the manufacture of
wood and wood products, and the manufacture of paper and paper products. The
measure of intermediate consumption of raw timber (roundwood) by the
manufacturing industry is set equal to the total production of processed timber
(sawlogs, pulpwood and other industrial roundwood) by the manufacturing industry.
107.
Intermediate consumption - Generation of energy products (incl. charcoal):
This part of intermediate consumption records production of wood fuel, including
wood for charcoal, that is used as a source of energy as input to other production
processes. Some wood fuel will be used as input to the activities of the forestry and
forest-related manufacturing industries.
108.
Intermediate consumption Other uses: This entry relates to the consumption
by other industries of timber products (saw logs, pulpwood and other industrial
roundwood) produced by the manufacturing industry.
Household consumption Energy: Household consumption for energy
109.
purposes records raw timber (roundwood) that will be used as fuel for purposes such
as cooking, heating or power production. It includes wood harvested from main
stems, branches and other parts of trees (where these are harvested for fuel) and wood
that will be used for charcoal production (e.g. in pit kilns and portable ovens). The
volume of roundwood used in charcoal production is estimated by using a factor of
6.0 to convert the weight (MT) of charcoal produced. It also includes wood chips to
be used for fuel that are made directly (i.e. in the forest) from roundwood. It is
reported in cubic metres solid volume under bark (i.e. excluding bark). All household
consumption is assumed to be of raw timber.
110.
Household consumption Other uses: This entry includes all non-energy
uses of raw timber by households.

58

111.
Changes in inventories: This entry comprises changes in inventories of
timber products occurring during the reference period at all stages between harvest
and manufacture. It comprises changes in government stocks, in inventories with
manufacturers, importers, exporters, and in inventories held by the forestry industry.
Conceptually, changes in inventories includes post-harvest losses of timber during
supply, distribution, and storage. However, all timber losses are considered recycled
into later production and hence no separate estimate is recorded.
112.
Exports: This entry covers exports of timber products (roundwood, saw logs,
pulpwood and other industrial roundwood) shipped out of the country. It includes reexports. It excludes "in-transit" shipments. It is reported in cubic meters of solid
volume and values are normally recorded as free-on-board (i.e. fob).
4.6.3 Measurement issues and possible extensions
113.
Consistent with advice in earlier sections, the production of non-wood forest
products should be incorporated into the estimates of production of the account for
the specific product. Thus, the collection of forest berries should be included in the
account for food crops. A distinct account that brings together production of all nonwood forest products may to developed.
Depending on data availability and analytical requirements, the estimate of
114.
total production of roundwood may be broken down into production by type of
species (e.g. coniferous, broad leaf) or by forest type (e.g. plantation timber)

4.7 Asset accounts for forests and timber resources

4.7.1 Measurement scope and purpose
115.
The assessment and analysis of forests and timber resources assets is
undertaken from two complementary perspectives. First, in the asset account for
forests the area of land and changes in the area deemed to be forests and other
wooded land is recorded. Second, in the timber resources asset account the volume
of marketable standing timber is recorded both the stock and the changes in stock (for
example due to harvest or natural growth). While there will be a relationship between
these two perspectives the relationship will vary over time and from country to
country depending on the type of forest, the type of timber, planning and harvesting
methods and economic conditions.
116.
Descriptions of both of these asset accounts are provided in the SEEA
Central Framework. The physical asset account for forest and other wooded land is
described in section 5.6.4. The physical asset account for timber resources is
described in section 5.8.3. The discussion in the SEEA AFF is intended to summarise
and complement those descriptions.
117.
The compilation of asset accounts should support understanding of the
sustainability of the production of timber and non-wood forest products and hence
support analysis of the economic and social implications of changes in forest areas.
Information on forests and timber resources can also support broader discussions on
the role of forests in biodiversity and ecosystem management, including the
management of sinks of carbon in the context of policies to mitigate the effects of
climate change. In the context of agricultural policy information on conversion of
forest land may be particularly relevant.

59

4.7.2 Accounting entries

118.
The asset account for forests is shown in Table 4.6. It records the opening
stock of forests within a country in hectares, additions and reductions in the area of
forests over an accounting period and the closing stock of forest at the end of the
accounting period.
Table 4.6: Physical asset account for forests (hectares)
Opening stock

Additions to stock

Reductions in stock

Net changes in stock

Closing stock

Primary forest
Other naturally regenerated forest
Naturally generated forest
Planted forest
Total Forest land
Other wooded land

119.
The following entries are relevant in compiling the physical asset account for
forests.
120.
Opening stock: The opening stock is equal to the total area of forest and other
wooded land (in 000 ha) available at the beginning of the accounting period. The total
area is divided by forest type following the breakdown below. The definitions of each
of these types of forest are provided in the SEEA Central Framework section 5.6.4.
Forest and other wooded land (total)
Forest land
Naturally regenerated forest
Primary forest
Other naturally regenerated forest
Planted forest
Other wooded land
121.
Additions and reductions in stock: There are many and varied reasons for
changes in the area of forest and other wooded land over an accounting period,
particularly between different types of land use. The SEEA Central Framework
distinguishes
between
managed
expansion/reduction
and
natural
expansion/reduction. The first represents an increase (or decrease) in the area due to
human activity, while the second is the increase (or decrease) in the area resulting
from a natural process. Where possible the distinction between additions and
reductions in stock should be recorded and also the distinction between managed and
natural changes. However, if data are not available to make such distinctions then it
may be necessary to simply record the net change in stock.
122.
Net change in stock: In the absence of information on additions and
reductions in stock, net change is derived as the difference between closing stock and
opening stock.
123.
Closing stock: The closing stock is equal to the total area of forest and other
wooded land (in 000 ha) available at the end of the accounting period. The closing
stock of a given year constitutes the opening stock of the following year.
124.
The physical asset account for timber resources is shown in Table 4.7. A
timber resources asset account records the opening and closing stock of standing
timber and changes in the stock of standing timber due to natural growth, removals,
natural losses, catastrophic losses and other changes. The stock of standing timber is
defined as the volume of trees, living or dead, that can be used for timber or fuel.
There are precise measurement conventions that are used in estimating these
volumes. At the same time, various assumptions are often made in estimating timber

60

volumes including the use of factors to convert the area of forest land to timber
volumes.
Table 4.7: Physical asset account for timber resources (cubic metres)
Opening stock
Natural
growth

Additions to stock
Other
Total
additions additions

Removals

Felling
residues

Reductions in stock
Closing stock
Natural Catastrophic Other
Total Net changes
losses
losses reductions reductions in stock

Type of timber resource

Cultivated timber resources
Natural timber resources
Total

4.7.3 Measurement issues and possible extensions

125.
The measurement of the area of forested land is often challenging with a
variety of concepts and definitions used in different situations. In the SEEA AFF the
area of forested land is measured consistently with the FAO Forest Resources
Assessment which is based on the measurement of the area of land used for forestry.
It is not based on the concept of land cover. By applying the concept of land use it is
possible to integrate estimates of area of forests directly with estimates of land used
for other purposes particular for agriculture.
126.
At the same time, differences in data collection between forestry, agriculture
and other land uses require that data coherence and other checks be undertaken to
assure the quality and consistency of the data. Further, the relationship between land
use data and land cover data for forests is an important area of investigation.
127.
For national accounting purposes the distinction between natural and
cultivated timber resources is important since it affects the treatment of the change in
timber resources in the accounts. The growth of natural timber resources is
considered to be outside of the production boundary whereas the growth of cultivated
timber resources is inside the production boundary. The consequence is that, in
concept, the production from cultivated timber resources should be recorded as the
trees grow rather than at the point of felling and removal.
128.
In practice, estimates of production for both natural and cultivated timber
resources are generally derived based on removals of timber in a particular
accounting period.
129.
A possible extension of the information in the two different asset accounts is
the collation of information by different species of tree or on resources in particular
locations.
130.
Information on timber resources and forest areas are commonly important
components of the estimate of a countrys carbon stocks and will also be important in
the measurement of GHG emissions and due to logging and deforestation. Factors
reflecting the quantity of carbon per tonne or cubic metre of timber can be used to
generate such estimates.
131.
For the purposes of assessing the sustainability of forests from a logging
perspective it is relevant to consider the derivation of an indicator that relates the flow
of timber products to the available and remaining stock of timber resources. No
definitive indicator is proposed in the SEEA AFF but possibilities include measures
of wood harvesting intensity and indicators based on the net annual increment.

61

4.8 Physical flow account for fish and other aquatic products
4.8.1 Measurement scope and purpose
132.
The physical flow account for fish and other aquatic products records the
total supply and total use of all fish and other aquatic products for a country,
including both capture and aquaculture production. Total supply consists of domestic
production and imports and Total use covers intermediate use of fish products, final
consumption by households, changes in inventories and exports.
133.
The information in the physical flow account is organized in a way to support
integration of information with standard economic data, such as that contained in the
national accounts and comparison of information with other activities such as
agriculture and forestry. The supply and use structure also facilitates confrontation of
data on the production, trade and consumption of fish products.
134.
The production information contained in the physical flow account is also
relevant in the assessment of changes in fish stocks and combining these types of
information can support analysis of the sustainability of fish production at national
level.
135.
The analysis of the consumption of fish products within the physical flow
table can also be extended to consider the calorie and nutritional intake corresponding
to fish consumption by households. Linking this information, also available in food
balance sheets, to economic and environmental variables, could be an important part
of better assessing food security and sustainability related issues.
The scope of the physical flow account is all fish and other aquatic products
136.
following the scope of the International Standard Statistical Classification of Fishery
Commodities (ISSCFC). This classification covers more than 600 species/commodity
items. To support the more aggregated perspective of the SEEA AFF, a grouping of
fish products based on the ISSCFC has been created. It has 15 major groups listed
below. These groupings of fish products may also be categorized by production
process, i.e. aquaculture or capture fisheries.

Freshwater fish
Diadromous fish
Demersal fish
Tunas, bonitos, billfishes
Other pelagic fish
Other marine fish
Crustaceans
Cephalopods
Other molluscs
Aquatic mammals
Other aquatic animals
Aquatic plants, algae

4.8.2 Accounting entries

137.
The physical flow account for fish and aquatic products is shown in Table
4.8. The account is divided into two parts the supply table and the use table. Fish
products have been grouped according to the high level groupings noted above. For
each product total supply must equal total use.

62

138.
In general, the bulk of fish and aquatic products will be measured in tonnes.
Estimates of nominal catch the core measure of production should be made in terms
of live weight equivalent. However, it is recommended that for the purposes of
attributing estimates to all categories of use that accounting entries be made in terms
of actual weights rather than in live weight equivalent i.e. the estimates of use
should be allocations of the total nominal catch. Measures of use in terms of live
weight equivalent effectively remove the requirement to record post-harvest/catch
losses which is not desirable in a physical supply and use system.
139.
There are some fish and aquatic products for which measurement in tonnes is
not appropriate or for which data are usually collected using other measurement units,
for example, numbers of marine mammals. Where these products are significant for a
country consideration will need to be given to the most appropriate measurement unit
in which to balance estimates of supply and use of the product.
140.
It is noted that no aggregates across products are proposed in Table 4.8. It
may be relevant to aggregate some products to obtain total tonnages for broader
groupings of fish products but no specific proposals are made in the SEEA AFF.
Further, given the diversity of products reflected in the table, no meaningful overall
aggregate can derived in physical terms.
Table 4.8: Physical flow account for fish and aquatic products (tonnes)
SUPPLY TABLE
Capture fisheries
Discarded Nominal
Gross catch catch
catch

Domestic production
Aquaculture
Harvest

Nominal
Harvest loss harvest

Imports
Total
Food use
domestic
production Whole, meat Fillet
Processed

Fish and other aquatic products

Fish

Crustaceans
Molluscs

Freshwater fish
Diadromous fish
Demersal fish
Tunas, bonitos,
billfishes
Other pelagic fish
Marine fish, other
Cephalopods
Other molluscs excl
cephalopods

Aquatic animals,
other
Marine mammals
Reptiles
Other aquatic
animals
Pearls, sponges and
corals
Aquatic plants,
algae
Algae
Macro plants

63

Non-food use
Total imports
Fish meal

Fishoil

Inedible

Total supply

USE TABLE

Intermediate consumption

Feed

Household consumption

Changes in inventories

PostFood
of which:
harvest/catch
Other uses consumption Food waste Other uses
losses

Other
changes

Exports

Food use
Whole, meat Fillet
Processed

Fish meal

Non-food use
Fishoil
Inedible

Total Exports

Fish and other aquatic products

Fish

Crustaceans
Molluscs

Freshwater fish
Diadromous fish
Demersal fish
Tunas, bonitos,
billfishes
Other pelagic fish
Marine fish, other
Cephalopods
Other molluscs excl
cephalopods

Aquatic animals,
other
Marine mammals
Reptiles
Other aquatic
animals
Pearls, sponges and
corals
Aquatic plants,
algae
Algae
Macro plants

Supply table entries

141.

Gross catch: This entry records the total live weight of fish caught.

142.
Discarded catch: This entry records the difference between the gross catch
and the live weight of fish that are ultimately retained and landed by the fisheries unit
(the nominal catch).
143.
Domestic production Fisheries: In recording domestic production a
distinction is made between: i) Fisheries (ISIC-031) and ii) Aquaculture (ISIC 032).
i) Fisheries may be defined as an activity leading to the harvesting of fish, within the
boundaries of a defined area. The fishery concept is broad ranging covering all
aspects of human fisheries activity, including from economic, management,
biological/ environmental and technological viewpoints.
144.
In the physical flow account for fishery the nominal catch (the landings
converted to a live weight equivalent basis) is equal to gross catch less discarded
catch
145.
Domestic production Aquaculture: In 1988 FAO introduced the following
definition of aquaculture: Aquaculture is the farming of aquatic organisms,
including fish, mollusks, crustaceans and aquatic plants. Farming implies some form
of intervention in the rearing process to enhance production, such as regular stocking,
feeding, protection from predators, etc. Farming also implies individual or corporate
ownership of the stock being cultivated. For statistical purposes, aquatic organisms
which are harvested by an individual or corporate body which has owned them
throughout their rearing period contribute to aquaculture, while aquatic organisms
which are exploitable by the public as a common property resources, with or without
appropriate licenses, are the harvest of fisheries. This entry records the nominal
harvest of fish from aquaculture facilities.
146.
Domestic production Other production (incl. household catch): Other
production includes all other fish production, other than capture and aquaculture: e.g.
household catch or recreational fisheries.
147.
Imports: Imports include the total imports of fisheries commodities in live
weight equivalent. A key distinction is made between:

64

Total use

i)
ii)

Imports for food use includes the followings three categories: whole,
meat; fillet; processed
Import for non-food use includes instead the followings three categories:
fish meal; fish oil; inedible

Use table entries

148.
Intermediate consumption Feed: This entry refers to the use of fish products
as input to manufactured feeds which are an important part of modern commercial
aquaculture, providing the balanced nutrition needed by farmed fish. The feeds, in the
form of granules or pellets, provide the nutrition in a stable and concentrated form,
enabling the fish to feed efficiently and grow to their full potential. Many of the fish
farmed more intensively around the world today are carnivorous, e.g.: Atlantic
salmon, trout, sea bass and turbot. In the development of modern aquaculture, starting
in the 1970s, fishmeal and fish oil were key components of the feeds for these
species.
Intermediate consumption - Other purposes: This entry refers to all uses other
149.
than export, household consumption and changes in inventories.
Household consumption - Food: Refers to total amount of fish and aquatic
150.
products consumed by domestic households as food. The aggregate for household
food consumption includes amounts that are purchased by households or are
otherwise obtained. For particular policy and analytical purposes it may be relevant to
separately measure the amount of household food waste i.e. the amount of food that
is discarded by households.
151.
Household consumption Other uses: Refers to total amount of fish and
aquatic products consumed by domestic households for purposes other than food.
152.
Changes in inventories Post-harvest losses: This entry relates to losses of
fish products defined as the quantity of fish and fish products lost between the point
of capture / harvest and the point of use.
153.
Exports: Exports include the total exports of fisheries commodities in live
weight equivalent. A key distinction is made between:
i) Exports for food use which includes the following three categories whole,
meat; fillet and processed fish
ii) Exports for non-food use which includes the following three categories
fish meal; fish oil and inedible fish.
4.8.3 Measurement issues and possible extensions
154.
Depending on analytical and policy requirements it may be relevant to
consider information on the production of fish by individual fisheries rather than by
species. A focus on individual species may ignore the connections between species
that in turn underpin on the health of individual fisheries. A related extension would
be to distinguish supply and use data between fisheries in inland waters and in marine
areas.
155.
A measurement issue that will commonly arise with capture fisheries is the
treatment of fish caught in a local EEZ by vessels who are registered in other
countries. Following standard conventions these fish products are considered the
production of the country to whom the fishing vessel is registered. For details see
SEEA Central Framework 3.132.

65

156.
Another production boundary issue concern recreational and sport fishing.
Generally, fish caught by recreational anglers that are retained for subsequent
consumption are considered production and are within scope of fisheries activity. It is
considered akin to subsistence based fishery activity. A distinction is made however
in those cases where households pay specialized companies for sport fishing services.
These activities are recorded as recreational activities and the associated catch of fish
would be excluded from the scope of production defined for use in SEEA AFF.
Nonetheless, in the asset account for fish and other aquatic resources (see section
4.9), the catch of fish by all means and for all purposes should be regarded as a
reduction in stock.

4.9 Asset account for fish and other aquatic resources

4.9.1 Measurement purpose and scope
157.
The decline in global fish stocks over recent decades and the corresponding
rise in aquaculture facilities is well documented (see for example The State of World
Fisheries and Aquaculture FAO 2014). At the same time, it is generally recognized
that the measurement of fish stocks and related changes in stocks is a challenging
exercise. Nonetheless, the general importance of understanding issues of
sustainability in the production of fish products, suggests that work in this area be
given a high priority.
The proposals for the SEEA AFF in this area follow the guidance outlined in
158.
the SEEA Central Framework section 5.9. Thus, an asset account for fish and other
aquatic resources for a country should cover its stocks in aquaculture facilities and all
resources that are considered to live within the exclusive economic zone (EEZ) of a
country throughout their life cycles, in both coastal and inland fisheries. Migrating
and straddling fish stocks are considered to belong to a country during the period
when those stocks inhabit its EEZ.
In addition, fish stocks on the high seas and other fish stocks over which
159.
exploitation control has been established through international agreements should be
included in a countrys estimate consistent with the portion of agreed access rights to
those resources that can be considered to belong to the country. Estimates of fish and
other aquatic resources should be compiled consistently with the legal frameworks
for international fisheries management which have been established with reference to
the United Nations Convention on the Law of the Sea.
160.
A physical asset account for fish and other aquatic resources shows the total
biomass of all species that are subject to harvesting activity or cultivated within a
national boundary. The scope of harvesting includes commercial sea and freshwater
operations, aquaculture and subsistence and recreational harvesting of aquatic
resources.
4.10.2 Accounting entries
161.
A basic asset account for fish and other aquatic resources is presented in table
4.9. It shows the opening and closing stock of aquatic resources and additions and
reductions in stock due to natural growth, catch, and other factors.
162.
The SEEA Central Framework section 5.9 provides a discussion on the
measurement of these stocks and flows. For cultivated aquatic resources, i.e. those
stocks within scope of the definition of aquaculture as defined in section 4.9 (above),
the measurement of the opening and closing stocks and changes in stock should be

66

relatively straightforward given that the stocks are closely managed and controlled.
Challenges may arise when recording reclassifications between cultivated and natural
fish stocks such as when wild fish are introduced as breeding stock or when cultured
seeds are released into the wild. There may also be instances of escapes from
aquaculture facilities located in river and marine environments. Unexpectedly large
losses due to disease or natural catastrophic events should be recorded as catastrophic
losses.
163.
For natural fish and other aquatic resources it will generally be the case that
direct measurement of opening and closing stocks and many of the elements of the
change in stocks cannot be observed or measured directly. The exception is the
measurement of the harvest or gross catch. Consequently, biological models and
various assumptions must be used in order to establish relevant estimates but even
with the use of such models there is often a lack of robustness around the estimates.
164.
In these situations it is most common to focus on measures of the overall
changes in the fish stock by considering changes in the gross catch relative to fishing
effort (i.e. the labour, days at sea, size of vessel, fishing gear). The catch per unit
effort (CPUE) may provide a good indicator of the relative change in stock size
assuming that population density and population size are closely correlated and that
CPUE is higher at higher population densities.
Table 4.9: Physical asset account for fish and aquatic resources (tonnes)
Opening stock
Natural
growth

Additions to stock
Other
Total
additions additions

Gross
catch/harvest

Reductions in stock
Natural Catastrophic
Other
losses
losses
reductions

Closing stock
Total Net changes
reductions in stock

Type of fish and aquatic resource

Cultivated
aquatic
resources

Breeding stock
Inventories

Natural (wild) aquatic resources

4.10.3 Measurement issues and possible extensions

165.
As noted above the measurement of inland and marine fish stocks is
challenging. The SEEA Central Framework provides a summary of the main issues
and measurement approaches. The general conclusion is that direct measurement of
the absolute stock is generally not possible and the use of various biological models
based on analysis of fish populations is required.
Given these measurement challenges it is generally considered that complete
166.
articulation of a physical asset account for fish and other aquatic resources is not
possible. However, it may well be possible to provide some more qualitative
assessment of fish stocks based on the consideration of various models and catch
statistics such that different species and fisheries may be considered underfished/fully
fished or overfished.
167.
A further alternative is to consider indicators of the condition of marine and
inland water ecosystems which in turn may give insights into the likely state of fish
and other aquatic resources. For inland waters information on the surface area of
lakes and wetlands via land cover accounts may provide important and useful
information. For marine environments, indicators such as the mean trophic index and
the more general ocean health index may provide a way forward. Overall, more

67

research and development is needed to fully articulate the appropriate methods for
deriving estimates to populate a physical asset account for fish and other aquatic
resources.

4.10 Accounts for stocks and flows of water resources

4.10.1 Measurement purpose and scope
168.
All agricultural, forestry and fisheries activity is fundamentally dependent on
the quantity and quality of water that is available to it. At national level, the
variations in the availability of water between regions may not be apparent and
seasonal variations in water availability may also be a constraining factor. Further,
there will be dependencies between different regions within and across countries such
that activities at the start of a water catchment are likely to impact on activities
further down the water catchment. Dependence on water is not limited to agriculture
and consequently there may be many competing uses of water, for example for the
generation of electricity, manufacturing processes and human consumption.
169.
Given this broad set of connections and dependencies and the increasing
pressures on water availability in many countries and regions within countries, it is
relevant that a broad and coherent set of data on water resources and their link to
economic and human activities can be maintained.
One approach to the development of such an information set has been the
170.
accounting framework outlined in the SEEA Water published in 2012. It builds on the
development of water statistics more generally to organize information on water
following the guidelines of the SEEA Central Framework. The accounts for the
stocks and flows of water resources in the SEEA AFF reflect extensions of the
accounts for water resources summarized in the SEEA Central Framework and
described at length in the SEEA Water. These two sources underpin the discussion
here, together with the International Recommendations for Water Statistics (also
released in 2012).
171.
The SEEA Water accounts are of two broad types: water asset accounts and
physical flow accounts for water. Water asset accounts record the stocks of water
resources (primarily surface and groundwater resources) and changes in the stocks of
water resources through abstraction, precipitation, evaporation and other flows.
Physical flow accounts for water record the flows of water into the economy from the
environment, the flows between economic units within the economy (including flows
of wastewater) and the returns of water to the environment. Both of these types of
accounts are adapted for the purposes of SEEA AFF.
172.
From the perspective of SEEA AFF the intent in organizing is to assess both
the use of water in the production of key agricultural products (e.g. rice, wheat, etc)
and the sustainability of use given available water resources. This intent is framed
within the context of water use in other industries and households and in the context
of different approaches to the production of agricultural products. Thus, for example,
the information on water in SEEA AFF does not only relate to irrigation but attempts
to place irrigated agricultural activity in a broader context.
4.10.2 Accounting entries
173.
The asset account for water resources is designed to record the opening and
closing stocks of assets and changes in those stocks over an accounting period. This
basic structure may be considered difficult to apply for water resources since water is

68

considered to be in constant motion and commonly it is the assessment of the

functioning of the water cycle that is of primary interest. While there is no doubt that
water is a unique resource, there are advantages in applying the accounting structure
of stocks and flows to the measurement of water since it allows a comparison to
information on other resources and to standard economic data in a more
straightforward fashion.
174.
The asset account for water resources is shown in Table 4.10. The relevant
accounting entries are described below.
Table 4.10: Asset account for water resources (cubic metres)
Surface water
Lakes and rivers
Artificial reservoirs

Groundwater

TOTAL

Opening stock of inland water resources

Additions to stock from the environment
Precipitation
Inflow from other territories
Inflows from other inland water resources
Discoveries and reassessments of water in aquifers
Return flows from economy

TOTAL ADDITIONS
Reductions in stock from the environment
Evaporation
of which: from Artificial reservoirs
Outflows to other territories
Outflows to the sea
Outflows to other inland water resources
Abstraction by economic units

TOTAL REDUCTIONS
Closing stock of inland water resources

175.
Opening and closing stocks: The scope of the asset account for water
resources is limited to inland water resources covering water in artificial reservoirs,
lakes and rivers, groundwater and soil water. Details on the definition and
measurement of these stocks can be found in SEEA Central Framework and SEEA
Water. It is accepted however that the measurement of stocks of water may be
challenging, particularly for soil water. Totals excluding soil water and focusing on
the stocks of surface water in lakes and artificial reservoirs and stocks of groundwater
may be a practical first level of ambition.
176.
Additions to the stock: Additions to the stock of inland water resources
reflect all flows of water that add to the opening stock of water resources. Five
different sources of additions are recognized in the asset account:
Precipitation: This reflects estimated volume of water falling in the territory
of reference prior to evapotranspiration. Amounts retained in the soil are
additions to soil water. Amounts that run off to rivers and lakes are additions
to surface water.
Inflows from other territories: This records amounts flowing into the territory
from other countries
Inflows from other inland water resources: This records flows between
different types of water resources within a country e.g. increases in
groundwater from soil water.
Discoveries and reassessments of water in aquifers.

69

Return flows from the economy: After abstraction by economic units, much
water is returned to the inland water system either with or without treatment.
All return flows are included in scope irrespective of the quality of the water.
177.
Reductions in stock: Reductions in the stock of inland water resources reflect
all flows of water that reduce the opening stock of water resources. Five different
sources of reductions are recognized in the asset account
Evaporation: Total amount of water that evaporates from the territory of
reference. For analytical reasons it may be useful to separate the evaporation
from artificial reservoirs.
Outflows to other territories: This records the amount of water flowing to
other countries. It may be useful to separately record any outflows that are
required pursuant to international treaties or similar obligations.
Outflows to the sea
Outflows to other inland water resources: This records flows between
different types of water resources within a country eg from soil water to
groundwater. In aggregate must completely offset Inflows from other inland
water resources.
Abstraction by economic units: This records all abstraction by economic
units, including households, for use in production or consumption. It includes
water that is immediately returned to the inland water system such as for
hydropower. The inclusion of this water as abstracted helps to give a fuller
picture of the water requirements of all economic units.
178.
Two physical flow accounts for water are articulated in the SEEA AFF each
highlighting different aspects of the connection between agricultural activity and
water resources. The first account records the quantities of water being abstracted by
economic units from the environment. The second account records the quantities of
water used, including through distribution, as inputs into production processes and for
consumption. Both accounts use as their basis the structure of the physical supply and
use table for water described in the SEEA Central Framework (section 3.5). The
second account however, adds significant detail to record data on water use by type
of agricultural product particularly food and non-food crops. This information will
enable an understanding of the intensity of water use for significant products.
179.
The physical flow account for water abstraction is shown in Table 4.11. It is
divided into two parts: the supply table and the use table. The relevant entries in the
account are described below.
Table 4.11: Physical flow account for water abstraction (cubic metres)
SUPPLY
Total
abstracted
from the
environment

USE
Water abstracted by

TOTAL

Agriculture Forestry Fisheries

Water source
Inland water resources
Surface water
Groundwater
Soil water

Total from Inland water resources

Other sources
Collected Precipitation
Sea water (desalinated water)

70

Total
Agriculture

Water
collection,
Mining
treatment and
supply

Electricity

Other
Industries

Households

180.
The first column records the total supply of water from the environment by
type of source of the water. The entries relating to abstraction of water from inland
water resources (surface water, groundwater and soil water) are conceptually
equivalent to the entries in the asset account for water resources relating to
abstractions. Soil water is included here although it is accepted that compiling data
for this source of water is likely to be challenging and, in the first instance, it is
recommended that focus be placed on recording information on the abstractions of
water from surface water and groundwater.
In addition to abstractions from inland water resources, water is also
181.
abstracted from the environment through the direct collection of water from
precipitation into storage tanks and through the desalination of seawater. Both of
these sources must be added to provide a full picture of water entering the economy.
182.
The remaining columns of the account allocate the total water abstracted
from the environment to the relevant economic units undertaking the extraction. Note
that a large proportion of water will be abstracted by the water collection, treatment
and supply industry before distribution to other economic units. These quantities
recorded in this table do not imply that the economic unit is the ultimate consumer of
the water abstracted although, in general, abstractions by those industries other than
the water collection, treatment and supply industry, will be for their own use.
183.
The physical flow account for water distribution and use is shown in Table
4.12. This table provides information that may be of most direct relevance in the
context of SEEA AFF as it records the total quantities of water in agriculture
irrespective of the source of the water.
184.
The physical flow account for water distribution and use is divided into two
parts: the supply table and the use table. The selection of agricultural products should
be aligned with the products identified as being the most important. As discussed
earlier in this chapter, the selection of the most important and policy relevant
agricultural products is a matter for consideration at country level. The relevant
entries in the account are described below.

71

Table 4.12: Physical flow account for water distribution and use (cubic metres)

Water used or reused by/for

TOTAL
Water
AGRICULTURE collection,
Forestry
Other food Non-food
Total
treatment
Maize Rice Wheat Palm oil Sugar Potatoes
Total crops Livestock
Aquaculture
crops
crops
agriculture
and supply
Agriculture

TOTAL
SUPPLY

Fisheries

Water abstracted by
Agriculture
Forestry
Fisheries
Total Agriculture
Water collection, treatment and
supply
Mining
Electricity
Other Industries
Households
Imports
Total abstraction and distribution
Wastewater generated by
Agriculture
Other industries
Households
Total wastewater
TOTAL USE

72

Mining

Electricity

Other
Households
Industries

Exports
TOTAL USE

185.
The entries in the total supply column reflect the total amounts abstracted
from all sources by industry. These entries are equivalent to the totals in the bottom
row of the physical flow account for water abstraction (Table 4.11).
186.
The entries in the remaining columns of the table, collectively the use table,
record how the abstracted water is used. Here there is particular focus on recording
the use of water in the production of specific crops and for particular agricultural
activities (e.g. livestock rearing). It may be that the total use of water for these fine
level purposes can be recorded, i.e. without attribution to the source of the water. The
dark grey cells point to combinations of supply and use that are unlikely to apply and
this may serve to reduce the level of complexity in the compilation of the account.
187.
In addition to the use of abstracted water, economic units will commonly
reuse water that has been previously used by another economic unit. Generally, then
the reuse of water relates to the situation where wastewater is generated and then
collected by a water treatment facility and subsequently distributed (treated or
untreated) to economic units. In this situation, following the SEEA Central
Framework, this water is considered to have been retained in the economy. Where
water is used, returned to the environment (e.g. a river) and then re-abstracted further
down stream, this should be recorded in gross terms i.e. abstracted twice - and
hence it is not considered to be the reuse of water.
188.
The entries in the bottom section of the account above record the generation
of wastewater by different economic units (in the first column) and the subsequent
quantities of this wastewater which is reused by economic units. There will generally
be a difference between total supply and total use in this situation equal to the
quantity of wastewater generated which is returned to the environment rather than
reused.
4.10.3 Measurement issues and potential extensions
189.
There are a range of measurement issues that should be considered in
accounting for water resources. This section provides a short overview of some of
them and readers are referred to documents such as the SEEA Water and the
International Recommendations for Water Statistics for much more in depth
discussion.
190.
A first general point is that while the accounts described above are applicable
at the national level, ideally information would be recorded and accounts developed
at a catchment or river basin level. The ambition of working at this level of detail is to
ensure focus on those areas that are most heavily used in terms of water abstraction
relative to available water resources. Often, analysis at a national level can mask
significant variations between water catchments.
191.
Second, it is relevant to compile water accounts on a regular basis, most
likely annually, particularly in those catchments where pressures on water resources
are high. Depending on rates of change in abstraction for industry or domestic
consumption, water resources may become under stress more quickly than might be
implied by looking at long term averages. Further, in some cases it may be necessary
to consider sub-annual measurement to allow for seasonal variation in water
availability.
192.
These last two paragraphs point to the interest in understanding the
sustainability of water resources in terms of being able to support ongoing economic
and human activity. In this context, a number of other factors must be considered.
First, for a given catchment or country, the assessment of sustainability requires

73

consideration of the abstraction and other water activities of all industries and sectors,
not only agriculture, forestry and fisheries. The use of too narrow a set of water users
may lead to a misunderstanding of the relevant pressures on water use. At the same
time, in many areas agriculture is the most significant user of water and hence
consideration of use for agricultural activities is an important consideration.
193.
Second, it is likely to be important to understand how water is used in
different activities. Following the conventions of the SEEA, water abstraction
includes quantities of water that are used for particular activities and then
immediately returned to the environment. An important example is the use of water
for hydropower generation. In this case while the final water use (i.e. abstractions less
returns commonly referred to as water consumption) is very small but clearly it is
important that a sufficiently large stock of water is available to run through the
hydropower facility. A related situation concerns water use in aquaculture where the
water requirements will vary depending on the species of fish and the intensity of
production.
194.
The more general conclusion here is that in the assessment of water resources
a number of different indicators may be relevant depending on the question to be
answered. In some cases it will be relevant to focus on the total quantity of water
extracted whereas in other case a focus on final water use will be most relevant.
A third consideration is that the water accounts presented in this section focus
195.
only on the quantities of water. A complete assessment of water resources also
requires consideration of water quality. Changes in water quality, particularly are it
may changes along the course of a river catchment, may be highly related to the
sustainability of the water resources and the potential use of those water resources.
Of particular relevance in the case of agricultural, forestry and fisheries
196.
activity is the impact that these activities may have on water quality, for example via
residual flows of fertilizers and pesticides. Such residual flows can have devastating
consequences, for example in the creation of so-called dead zones in coastal areas
near major river mouths.
197.
Given this type of impact, it is also the case that there are negative
consequences for other economic activities from reductions in water quality, that may
be of interest. The impact on fisheries activity is a clear one.
198.
The SEEA AFF does not discuss accounting and measurement of water
quality. Readers are referred to chapter 7 of the SEEA Water for more detail. A
discussion on flows of fertilizers and pesticides to the environment is included in the
SEEA AFF in section 4.13.
199.
The treatment and definition of wastewater and reuse of water is not given a
high focus in the SEEA AFF although in some situations it may be particularly
relevant to understanding the pattern of water use by agricultural, forestry and
fisheries activities. It is noted that where a landholder abstracts water and then returns
the water to a river system before it is re-abstracted downstream then this is not
considered reuse as such. Rather it is considered that the water has been returned to
the environment. There are however a range of water harvesting schemes and
techniques wherein multiple uses of water occur before final return to the
environment in which case recording and understanding the reuse of water may be
relevant. Details on the definitions and appropriate recording of wastewater and
reused water are contained in the SEEA Central Framework and the SEEA Water.
200.
In terms of assessing the overall use of water resources by agricultural
activities, the allocation of water use by type of agricultural product may not be
required. However, where there are apparent limits on the overall availability of
water, information on which products, commonly crops, are using the largest amounts

74

of water may be of high relevance in determining the appropriate responses. Within

the SEEA AFF framework it is also possible to link such detailed water use data with
related production information and hence an assessment of the relative importance of
water to specific crops and production approaches is possible.

4.11 Physical flow accounts for energy

4.11.1 Measurement purpose and scope
201.
The physical flow account for energy use records the use of energy, in joules,
by agricultural activities and for selected agricultural products. The energy use may
be of any energy product including, electricity, fuel (including diesel), biofuel, solar
and wind energy.
202.
In their complete form, physical flow accounts for energy record energy
flows, in physical units, from the environment into the economy (energy from natural
inputs), the flows of energy within the economy (energy products) and finally the
flows of energy back to the environment (energy residuals). Details on the
distinctions between these different energy flows are presented in SEEA 2012 Central
Framework Section 3.4.
At present, the physical flow accounts for energy are restricted to covering
203.
flows of energy used in agriculture. Ideally, these data would be complemented by (i)
production of energy by the agricultural sector; (ii) sources of energy used by
agricultural and other users; and (iii) uses of energy by non-agricultural activities
including households. The proposed SEEA AFF table for energy flows provides
scope for inclusion of estimates for energy use within agriculture and other economic
activities i.e. it is a table showing the use of energy products.
4.11.2 Accounting entries
204.
The physical flow account for energy use is shown in Table 4.13. In the first
column it records the total supply of energy products by type of energy product (see
below for a description of the types of energy products). The first row
Transformation of energy products relates to the use of energy products, such as
coal, to produce other energy products, such as electricity. Since the focus of this
table is on the use of energy by agricultural activities and since the transformation of
energy products is not a primary activity of these units there is no expansion of this
aspect of energy use.
205.
The bulk of the columns relate to the use of energy as an input to agricultural
activities, where possible by type of product. A variety of data sources is likely to be
required in order to compile data at this level of detail. Note that energy use by other
industry groups (manufacturing, electricity), households and exports of energy
products are all recorded in this table such that an economy wide context for
agricultural energy use can be recorded.

75

Table 4.13: Physical flow account for energy use (joules)

Agriculture, Forestry, Fisheries
Agriculture
TOTAL
SUPPLY

Maize

Manufact
Other
Total
Electricity
Households Exports TOTAL USE
Forestry Fisheries uring
industries
Other food Non-food
Rice Wheat Palm oil Sugar Potatoes
Total crops Livestock agriculture
crops
crops

USE OF ENERGY
Tranformation of energy products
End-use of energy products
Coal
Hard coal
Peat and peat products
Gas
Natural Gas (including LNG)
Oil
Liquefied petroleum gas (LPG)
Gas-diesel oil
Gasoline
Residual fuel oil
Biofuel
Modern biofuel
Traditional biofuel
Waste
Electricity
Heat
Nuclear fuels and other fuel nec
TOTAL USE

206.
The tracking of energy flows into and through the economy must recognize
that in many cases the original source of the energy e.g. coal, water for hydropower
is transformed before final use within the economy. Most commonly various
natural inputs are transformed into electricity. The Use table for energy products must
therefore distinguish between cases where energy products are used directly by final
consumers and cases where the energy products are used by transforming industries
to generate new energy products that are then consumed. Further, not all energy
products are used for energy purposes (e.g.: oil based products used for the
production of plastic) and it is relevant to distinguish different types of end use for
products that are primarily considered to be for energy purposes.
207.
The energy products included in the Use table are the following. They are
classified following the Standard International Energy Product Classification (SIEC).
SIEC is a classification of products relevant for energy statistics developed as part of
the preparation of the International Recommendations for Energy Statistics (IRES).
With the recent adoption of IRES by the UN Statistical Commission at its 42nd
session (February 2011), it is expected that SIEC will guide the collection and
compilation of energy statistics at national and international level, enhance
international comparability as well the integration of energy statistics with other
statistical domains such as economic statistics.
Coal (SIEC code: 0) includes, e.g.: Hard coal (SIEC code: 01), Brown coal
(SIEC code: 02), and Coal products (SIEC code: 03).
Peat and peat products (SIEC code: 1) include, e.g.: Peat (SIEC code: 11),
Peat and peat products (SIEC code: 12), and Other peat products (SIEC
code: 129).
Gas (SIEC code: 3) includes Natural Gas (including LNG)
Oil (SIEC code: 4) includes Gasoline, Liquefied petroleum gas (LPG), Gasdiesel, Residual fuel oil in fisheries.
Biofuel (SIEC code: 5) includes Modern biofuel and Traditional biofuel.
Modern biofuel is generated with modern technology and high efficiency,

76

while Traditional biofuel is generated using traditional technology with low

efficiency.
Waste (SIEC code: 6) Energy produced by converting solid waste into an
energy product.
Electricity (SIEC code: 7). It describes amount of electricity, expressed in
terajoule (TJ), used in agriculture.
Heat (SIEC code: 8). Heat energy is the manifestation of the energy as heat.
Is a form of energy which transfers among particles in a substance (or
system) by means of kinetic energy of those particles.
Nuclear fuels and other fuel n.e.c. (SIEC code: 9): Nuclear energy is the
energy that is released by splitting the nucleus of an atom(fission) or joining
two atoms to become an individual atom (nuclear fusion).
4.11.3 Measurement issues and possible extensions
208.
The main issue concerning the measurement of energy in the context of the
SEEA AFF is that there is no articulation of stocks and flows related to the supply of
energy. Hence, as potential extensions, two matters are considered here.
209.
First, it is likely to be relevant to organize information on the production of
biofuels from agricultural and forestry outputs. In some cases the crops may be grown
specifically for the production of biofuels (e.g. certain types of maize) but in other
cases the production of energy may be a secondary product or by-product for
example in the generation of energy from sugar cane. While the production of biofuel
is not necessarily an input to agricultural, forestry and fisheries production,
information on the land and water used and emissions generated in the production of
biofuels is likely to be of high relevance in understanding the food-water-energyclimate nexus. The framework of the SEEA AFF may be extended in this direction
but this has not been undertaken at this stage.
210.
Second, it may be of interest to understand more generally the mix of sources
of energy used in agriculture, forestry and fisheries. For example, energy may be
captured directly e.g. via solar panels or wind turbines (these may be important in
the abstraction of ground water); energy may be in the form of fuels to run
machinery, or energy may be in the form of electricity.
211.
At an aggregate economy wide level the physical flow accounts for energy of
the SEEA (see SEEA Energy and the SEEA Central Framework) provide a complete
mapping of the various sources of energy supply with the various uses of energy by
different activities. However, additional information may be required to assess the
extent to which the electricity consumed by agriculture, forestry and fisheries could
be distinguished such that the original source of the energy for the electricity (e.g.
coal, nuclear, wind, solar) might be recorded.
212.
If this mapping back to original sources of supply could be completed then it
would be meaningful to consider the sustainability of energy supply in terms of the
mix of renewable and non-renewable sources.
213.
While this is an area of interest, it is not intended for the SEEA AFF to
develop extensions of this type since, in large part, this is the area of work covered by
the SEEA Energy.
214.
It is noted that there are close links between the measurement of energy use
and the estimates of GHG emissions by agriculture, forestry and fisheries. Indeed, in
general it will be the case that estimates of GHG emissions will be dependent upon
estimates of energy use.

77

4.12 Physical flow account for greenhouse gas emissions

4.12.1 Measurement purpose and scope
215.
The measurement of GHG emissions has emerged as an important issue for
agricultural statistics in recent years, as one of the fundamental commitment of
national parties to the UNFCCC is the reporting of their GHG emissions from
agriculture, forestry and land use change through national GHG Inventories. In
addition, in many developing countries the emissions from agriculture, forestry and
land use change are a significant proportion of total GHG emissions. Thus, from a
climate policy perspective, with a view towards informing actions on mitigation and
the links between particular aspects of agricultural production, their GHG emissions
reduction potential and the potential implications for economic production and
consumption. The inclusion of GHG emissions in the SEEA AFF is a fairly natural
use of the framework.
216.
The physical flow accounts described here record flows of GHG emissions
from agricultural activities to the environment, (i.e., fertilizer application or
deforestation ). The emissions are categorized into three broad types:
Process (i.e., GHG emissions that are reported under agriculture following
UNFCCC decisions for Annex I and non-Annex I Parties (UNFCCC
Common Reporting Format Tables under item 3. Agriculture, and their
associated IPCC guidelines. Emission categories include: enteric
fermentation, manure management, rice cultivation, synthetic fertilizers,
manure left on pasture, crop residues, manure applied to soils, drained
organic soils, burning of crop residues).
Land use, Land Use Change and Forestry (i.e., corresponding to UNFCCC
CRF Tables 4. LLUCF, and including activities such as forest, cropland and
grazing land management; clearing of forest land,, drainage of organic soils,
etc.)
Energy use in agriculture (i.e.: electricity, gas-diesel oil, gasoline, liquefied
petroleum, natural gas, residual fuel oil, towards activities such as
mechanized sawing and harvesting procedures; irrigation, drying, etc.).

4.12.2 Accounting entries

217.
The physical flow account for GHG emissions is shown in Table 4.14. In
concept the account follows the logic of a supply and use table however since the
only use of emissions is when they are received by the environment, there is no
elaboration of the use table in this instance.
218.
The structure of the physical flow account thus reflects a matrix whereby
information on the supply of GHG emissions from agricultural activity is considered
from the perspective of different activities within agriculture and from the perspective
of selected agricultural products. The activity perspective permits a linking to the way
in which agricultural emissions may be commonly measured, for example through the
UNFCC reporting process following IPCC guidelines. The product perspective
permits linking to production, trade, consumption and other environmental flows
across the SEEA AFF framework.
219.
The physical flow account also includes entries for GHG emissions from
other industries and households such that agricultural emissions can be placed within
a broader context.

78

Table 4.14: Physical flow account for GHG emissions (Gigagrams)

GHG emissions by type of agricultural activity

Enteric
Manure
Rice
Fermentation Management cultivation

Synthetic Manure left

Fertilizers on pasture

Crop
residues

Manure Cultivation
applied to of organic
soils
soils

Energy use in agriculture

Burning Crop
residues

Energy
Other
Total
Households
Forest Land Crop Land
Other consumed in Mining Manufacturing Transport
industries
Economy
Liquefied
(Net forest (Cultivated LULUCF Fisheries
Natural Gas Residual fuel
petroleum
conversion) organic soil) activities
(LNG)
oil
(LPG)

Fuel
Total

Electricity
Gas-diesel oil Gasoline

Type of GHG emission

Emissions (C02eq) from Nitrous
Oxide (N20)
Emissions (C02eq) from Methane
(CH4)
Emissions of Carbon Dioxide (C02)
Total Emissions in Carbon Dioxide
eq.(CO2 eq)
CO2 eq Emissions by Product
Food crops
Maize
Rice
Wheat
Palm Oil
Sugar
Potatoes
Other food crops
Total
Non-food crops
Livestock products
Timber products
Fish and other aquatic products
Total agricultural products

79

Land use, Land use change & Forestry

220.
The following paragraphs provide a description of the activities within scope
of agriculture from a GHG emissions recording perspective. For each activity a
general indication of the associated product grouping is provided but more detailed
work will be required for each activity to attribute the emissions to the relevant crops
and other agricultural products at country level.
221.
Enteric fermentation (Major product grouping: Livestock): Greenhouse gas
(GHG) emissions from enteric fermentation consist of methane gas produced in
digestive systems of ruminants and to a lesser extent of non-ruminants. It is computed
at Tier 1 following the 2006 IPCC Guidelines for National GHG Inventories (IPCC,
2006). Data are expressed in Carbon dioxide (C02) equivalent.
222.
Manure management (Major product grouping: Livestock): Greenhouse gas
(GHG) emissions from manure management consist of methane (CH4) and nitrous
oxide (N20) gases from aerobic and anaerobic decomposition process. Data are
expressed in carbon dioxide (C02) equivalent.
223.
Rice cultivation (Major product grouping: Crops): Greenhouse gas (GHG)
emissions from rice cultivation consist of methane gas (CH4) from the anaerobic
decomposition of organic matter in paddy fields. Data are computed at Tier 1
following the Revised 1996 IPCC Guidelines for National Greenhouse Gas
Inventories, Vol. 3, Chapter 4 and the IPCC 2000 Good Practice Guidance and
Uncertainty Management in National Greenhouse Gas Inventories.
Synthetic fertilizers (Major product grouping: Crops): Greenhouse gas
224.
(GHG) emissions from synthetic fertilizers consist of nitrous oxide gas (N20) from
synthetic nitrogen additions to managed soil. Data are expressed in carbon dioxide
(C02) equivalent.
225.
Manure left on pasture (Major product grouping: Livestock): Greenhouse gas
(GHG) emissions data from manure left on pasture consist of nitrous oxide gas (N20)
from nitrogen additions to managed soils from grazing livestock. Specifically nitrous
oxide gas is produced by microbial processes of nitrification and de-nitrification
taking place on the decomposition site (direct emissions), and after volatilization/redeposition and leaching processes (indirect emissions).
226.
Crop residues (Major product grouping: Crops): Greenhouse Gas (GHG)
emissions from crop residues consist of nitrous oxide gas (N20) from decomposition
of nitrogen in crop residues left on managed soils. Data are expressed in carbon
dioxide (C02) equivalent.
227.
Manure applied to soils (Major product grouping: Crops): Greenhouse gas
(GHG) emissions from manure applied to soils consist of nitrous oxide gas (N20)
from nitrogen additions to managed soils from treated manure. Data are expressed in
carbon dioxide (C02) equivalent.
228.
Cultivation of organic soil (Major product grouping: Crops): GHG emissions
data from cultivated organic soils are those associated with nitrous oxide gas (N20)
from drained organic soils. Data are expressed in carbon dioxide (C02) equivalent.
229.
Burning of crop residues (Major product grouping: Crops): Greenhouse Gas
(GHG) emissions from burning crop residues consist of methane gas (CH4) and
nitrous oxide gases (N2O) produced by the combustion of a percentage of the crop
residues burnt on-site.
230.
Emissions from use of Electricity: Greenhouse gas (GHG) emissions
generated by the use of electricity in agriculture. Data are expressed in carbon dioxide
(C02) equivalent.

80

231.
Emissions from use of Fuel: Records GHG emissions estimated per energy
carrier (fuels) used in agriculture. Specifically energy carriers included in carbon
emissions flows accounts are the following:
Gas-diesel oils (FAO Code: 6801)
Gasoline (FAO Code: 6800)
Liquefied petroleum gas (LPG) (FAO Code: 6805)
Natural gas (LNG) (FAO Code: 6802)
Residual fuel oil (FAO Code: 6804) (Attributed to capture fisheries activity)
232.
Emissions from land use change: Land use emissions records country-level
estimates of greenhouse gas (GHG) emissions on land use activities, using Tier 1
computations, following 2006 Intergovernmental Panel on Climate Change (IPCC)
Guidelines for National GHG Inventories. It comprises carbon emissions from the
followings:
Forest Land (net emission/ removal) (FAO Code 5065) (Major product
grouping: Forest)
Crop Land (net emission/ cultivation area) (FAO Code 5070) (Major product
grouping: Crops)
233.
Emissions from fuel used in fisheries: Records data on GHG emissions due to
energy consumption in fishery activity. See Step 12 consumption of residual fuel oil.
4.12.3 Measurement issues and possible extensions
234.
The measurement of GHG emissions at national scale is directly linked to the
measurement of different activities within the agricultural, forestry and fisheries
industries. These activities cover the range of activities included in the SEEA AFF
and hence there should be a strong connection between the estimates in this account
and the estimates in other accounts within the SEEA AFF framework.
235.
The nature of these connections is summarized in Chapter 5 on measurement
methods and sources, and details on possible approaches to measurement are
described in detail in the FAOSTAT Emissions Agriculture database. Importantly,
there should be very close connections between the estimations required at a national
level for the purposes of IPCC reporting and the work required to populate data
within the SEEA AFF framework.

4.13 Physical flow accounts for fertilizers and pesticides

4.13.1 Measurement purpose and scope
236.
Fertilizers and pesticides are fundamental inputs to current agricultural
practice. For a variety of reasons including the cost of these inputs and their potential
environmental impact on local ecosystems it is relevant to understand the intensity of
fertilizer and pesticide use. Such information is of particular relevance when
assessing the relative merits of using agricultural practices that do not involve the use
of manufactured fertilizers and pesticides, such as organic farming.
237.
The use of an accounting approach for recording these inputs is intended to
facilitate comparison of data on the use of fertilizers and pesticides with agricultural
production and consumption data and also to enable the development of coherent
underlying data on fertilizers and pesticides by confronting data on the production,
trade and consumption of these products.

81

238.
Data on fertilizers may be recorded in terms of the tonnes of fertilizer
products that contain active nutrients (Nitrogen (N), Phosphate (P2O5), Potash (K2O)
or in terms of the tonnes of nutrients themselves. To provide consistency between
countries and over time, and for coherence in the measurement of different variables
(e.g. production, consumption, import and export), data used in the physical flow
account should be converted to a common nutrient basis. Such a conversion may be
based on the FAO standard Nutrient Principles.
239.
A similar issue arises in the measurement of pesticides where data may be
available in terms of active ingredients or in terms of weight of product. For the
SEEA AFF focus should be on the measurement in terms of active ingredients
although standardized measurement across different pesticide products is an area that
requires further development for the purposes of aggregate statistics.
4.13.2 Accounting entries
240.
The physical flow account for fertilizers is shown in Table 4.15. It records
the supply and use of fertilizers in terms of active nutrients. The account is divided
into a supply table and a use table and in aggregate, total supply must equal total use.
Table 4.15: Physical flow account for fertilizers (tonnes of active nutrients)
Intermediate consumption

Changes in
inventories

Domestic
TOTAL
Other food Non-food Other
Total
Household
Other
production Imports SUPPLY Maize Rice Wheat Palm oil Sugar Potatoes crops crops agriculture agriculture Other uses Total consumption Losses changes

TOTAL
Exports USE

Product
Nitrogen Fertilizers (N total
nutrients)
Phostate Fertilizers (P2 05
total nutrients)
Potash Fertilizers (K 20 total
nutrients)

Supply table entries

241.
Domestic production: This entry refers to the total quantity of fertilizer
produced at national level, expressed in tonnes of nutrient equivalent.
242.
Imports: This entry refers to the quantity of fertilizers in tonnes of nutrient
equivalent imported by a country.
Use table entries
243.
Intermediate consumption - Agriculture industry: This entry refers to
consumption in nutrients that can be described as total amount of fertilizers
expressed in tonnes of nutrients applied in a country to the soil to increase crop yield.
It can be defined as total quantity of fertilizer consumed by a country for agriculture
production. Information on the intermediate use of fertilizers should be allocated to
key agricultural products, primarily crops and pastures, to provide an understanding
of relative intensity of fertilizer use by crop type.

82

244.
Intermediate consumption - Other uses: This entry refers to quantity of
fertilizers used by other industries for purposes other than agriculture.
245.
Household consumption: This entry refers to the total quantity fertilizer
products expressed in nutrient equivalent consumed by households for nonproductive purposes (e.g. for fertilizing gardens and lawns) during the reference
period.
Changes in inventories - Losses: This entry refers to the quantity of fertilizer
246.
products expressed in nutrient equivalent lost during the year at all stages between the
point at which production is recorded and the final user including households, i.e.
losses during storage and transportation. It does not include quantities applied to the
soil but not taken up by plants and other residual flows to the environment.
247.
Changes in inventories Other changes: This entry comprises changes in
inventories occurring during the reference period at all stages between the production
and the retail levels, i.e. it comprises changes in government stocks, in stocks with
manufacturers, importers, exporters, other wholesale and retail merchants, transport
and storage enterprises and in stocks on farms. It excludes losses in inventories.
248.
Exports: This entry refers to the quantity of fertilizers in nutrient equivalent
tonnes exported by a country.
The physical flow account for pesticides is shown in Table 4.16. It records
249.
the supply and use of pesticides in terms of active ingredients grouped into eight
pesticide groups defined by FAO as shown below. The account is divided into a
supply table and a use table and in aggregate, total supply must equal total use.
Table 4.16: Physical flow account for pesticides (tonnes of active ingredients)
Intermediate consumption
Changes in inventories
TOTAL
Domestic
Other food Non-food Other
Total
Household
Other
production Imports SUPPLY Maize Rice Wheat Palm oil Sugar Potatoes crops crops agriculture agriculture Other uses Total consumption Losses changes Exports TOTAL USE
Product
Insecticides
Mineral Oils
Herbicides
Fungicides & Bactericides
Seed Treatments, Fungicides
Seed Treatment, Insecticides
Plant Growth Regulators
Rododentices
Total

The eight FAO pesticides groups:

A. Insecticides (FAO code 1309) include the following pesticides products: i)
chlorinated hydrocarbons, ii) organo-phosphates, iii) carbamates-insecticides,
pyrethroids, iv) botanical and biological products, v) others (not elsewhere
classified).
B. Mineral oils (FAO code 1354).
C. Herbicides (FAO code 1320) cover the following pesticides products: i)
phenoxy hormone products, ii) triazines, iii) amides, iv) carbamates-

83

herbicides, v) dinitroanilines, vi) urea derivatives, vii) sulfonyl ureas, viii)

bipiridils, ix) uracil, x) others (not elsewhere classified).
D. Fungicides & bactericides (FAO code 1331) contain the following pesticides
products: i) inorganics, ii) dithiocarbamates, iii) benzimidazoles, iv) triazoles
diazoles, v) diazines morpholines, vi) others (not elsewhere classified).
E. Seed treatments, fungicides (FAO code 1331) include the following
pesticides products: i) dithiocarbamates, ii) benzimidazoles, iii) triazoles
diazoles, iv) botanical and biological products, v) others (not elsewhere
classified).
F. Seed treatments, insecticides (FAO code 1353) cover the following pesticides
products: i) organo-phosphates, ii) carbamates-insecticides, iii) pyrethroids,
iv) others (not elsewhere classified).
G. Plant growth regulators (FAO code 1356).
H. Rododentices (FAO code 1345) contain the following pesticides products: i)
anti-coagulants, ii) cyanide generators, iii) hypercalcaemics, iv) narcotics, v)
others (not elsewhere classified).
Supply table entries
250.
Domestic production: This entry refers to the total quantity of pesticides
produced at national level. Data are expressed in tonnes of active ingredients.
251.
Imports: This entry refers to the quantity of pesticides products in tonnes of
active ingredients imported by a country.
Use table entries
252.
Intermediate consumption - Agriculture industry: This entry refers to the
quantity of pesticide products, expressed in tonnes of active ingredients, consumed as
inputs in processes of agricultural production. Information on the intermediate use of
pesticides should be allocated to key agricultural products, primarily crops and
pastures, to provide an understanding of relative intensity of pesticide use by crop
type.
253.
Intermediate consumption - Other uses: This entry refers to quantities of
pesticide products, expressed in tonnes of active ingredients, used by industries other
than agriculture.
254.
Household consumption: This entry refers to the total quantity of pesticide
products, expressed in tonnes of active ingredients, consumed by households for nonproductive purposes (e.g. for treating garden plants) during the reference period.
Changes in inventories Losses: This entry refers to the quantity of pesticide
255.
products, expressed in tonnes of active ingredients, lost during the year at all stages
between the point at which production is recorded and the final user including
households, i.e. losses during storage and transportation. It excludes residual flows of
pesticides to the environment after application.
256.
Changes in inventories Other changes: This entry comprises changes in
inventories occurring during the reference period at all stages between the production
and the retail levels, i.e. it comprises changes in government stocks, in stocks with
manufacturers, importers, exporters, other wholesale and retail merchants, transport
and storage enterprises and in stocks on farms. It excludes losses in inventories.

84

257.
Exports: This entry refers to quantities of pesticides products in tonnes of
active ingredients exported by a country.
4.13.3 Accounting for total flows of nitrogen and phosphorus
258.
Describing the supply and use of fertilizer products as elaborated in the
previous section is an important part of the SEEA AFF in terms of understanding
inputs to the agricultural production process. At the same time, it is also highly
relevant to consider these flows in the context of the overall nitrogen and phosphorus
cycles. This work which has a long history is commonly referred to as the
measurement of nitrogen and phosphorus balances or more recently as nutrient
budgets.
259.
From the perspective of the economy, flows of N and P may be traced from
their extraction from the environment, their movement within the environment and
their subsequent return to the environment. By tracing these flows it is possible to
understand a range of important factors concerning the relationship between
agriculture and the environment. These factors include:

The sustainability of use of N and P in terms of extraction from the

environment. This may be a significant issue for P.

The nutrient levels in the soil relative to the application of N and P.

Flows of excess N and P to the environment. This includes flows into inland
and coastal water systems and ammonia emissions to the atmosphere.

260.
The measurement and accounting for these flows is challenging since the
precise nature of the N and P cycles that are to be tracked will vary with the scale of
assessment. With respect to an individual farm the cycle will be quite open whereas
at larger scales the cycle will be relatively closed. Notwithstanding these challenges a
significant amount of work on the measurement of these cycles has been undertaken
and detailed methodologies for the compilation of Gross Nitrogen Budgets and
Phosphorus Budgets have been developed.
NB: The incorporation of nitrogen and phosphorus budgets was not included in the initial
design of the SEEA AFF and its inclusion now is based on discussion with relevant experts
just ahead of the release of this consultation draft. It is intended to expand the discussion of
this aspect of measurement, including the measurement of ammonia emissions in subsequent
versions of the SEEA AFF. The expanded discussion will be based on the large literature that
has developed, particularly within the EU and the OECD on the measurement of N and P
cycles.
4.13.4 Measurement issues and possible extensions
261.
Most of the relevant issues related to accounting for fertilizers and pesticides
are captured in the text above. A few additional points are made here. First,
concerning fertilizers, an important source of fertilizers are organic such as manure,
compost, lime and biochar. In concept these types of fertilizer should be accounted
for within the supply and use tables described above but as yet, this has not been
developed. It will be the case that flows related to these types of fertilizer will be
captured in the measurement of N and P cycles.
Second, the measurement of pesticides in terms of tonnes of active
262.
ingredients is an important starting point for assessing the extent of pesticide supply
and use. However, measurement in tonnes may mask the potential impact of the use

85

of certain pesticides which may have high levels of toxicity relative to their mass.
Adjusting for toxicity and hence risk factors is an extension beyond the accounting
framework but likely an important one from a decision making and policy
perspective.
Finally, work on the measurement of fertilizers and pesticide flows will link
263.
to other areas of the SEEA AFF framework. A particularly important one will be the
condition of soil resources. The development of accounting frameworks for soil
resources require much further development although there are some positive signs
(see section 4.15).
264.
There are also links to the measurement of GHG emissions and the condition
of water resources (water quality) which are likely to be important in the context of
understanding the sustainability of fisheries activity in particular.

4.14 Asset accounts for land

4.14.1 Measurement purpose and scope
265.
Land is a unique environmental asset that can be considered from a number
of perspectives. The SEEA Central Framework Section 5.6 provides a description of
the various aspects of accounting for land. In particular, it highlights the distinction
between land use and land cover. Following the definitions provided by the SEEA
Central Framework:
Land use reflects both (a) the activities undertaken and (b) the institutional
arrangements out in place for a given area for the purposes of economic
production, or the maintenance and restoration of environmental functions.
Land cover refers to the observed physical and biological cover of the Earths
surface and includes natural vegetation and abiotic (non-living) surfaces.
266.
For SEEA AFF purposes both land use and land cover information is
relevant. Land use information is valuable for conducting studies on a various
perspectives concerning agricultural production, food security and for deriving
estimates of cropping intensity. Further, land use data can be used in understanding
the structure of a countrys agricultural sector and deriving environmental indicators,
including those related to investment in agriculture. Land cover information is most
relevant in providing a basis for understanding the changing composition and
condition of the countrys ecosystems including its agricultural landscape.
267.
Often there can be apparent mismatches between land use and land cover
information. For example, with respect to forests, the area of land used or set aside
for forestry may include areas that have been recently logged and hence do not satisfy
the criteria to be considered forests from a land cover perspective. For this reason,
from a SEEA perspective, it is relevant to maintain a distinction between the concepts
of land use and land cover and account for each concept separately.
268.
For both land use and land cover accounts the starting point for accounting is
the terrestrial area of a country including the inland water resources (such as rivers
and lakes) of a country. However, for some countries its marine areas are also a
significant asset, in which case, the accounting for land should be extended. This may
be particularly relevant in the assessment of fisheries activity where the management
of coastal and marine ecosystem is of great relevance.
269.
The land asset accounts in the SEEA incorporate information on the
composition of land in terms of area only and do not take into consideration changes
in the quality of land, for example through changes in soil condition or reductions in

86

tree density. These qualitative aspects may be considered through accounting for
individual environmental assets, such as soil and timber resources, or in a more
systemic fashion using the approach of ecosystem accounting.
4.14.2 Accounting entries
270.
The asset account for land use is shown in Table 4.17. It records the opening
and closing stock of land in hectares classified by type of land use. It also records the
changes in land use over an accounting period through additions to stock and
reductions in stock. At this stage it is proposed that the focus of accounting in SEEA
AFF be on the opening and closing stock and the net change in stock. This focus
reflects an understanding of the likely available data for completion of a land use
asset account. Thus, where data on additions and reductions in stock are not readily
available and asset account may still be compiled.
Table 4.17: Asset account for land use (hectares)
Opening
stock

Additions Reductions in Net changes in

to stock
stock
stock

Closing
stock

Land use classes

Arable Land
Permanent Crop

Land

Arable land and permanenet crop (tot)

Arable land and permanenet crop (by crop type)
..
Permanent meadows and pasture (cultivated)
Permanent meadows and pasture (Naturally
Growing)
Permanent meadows and pastures (tot)
Agricultural Area (tot)
Forest Area

Land used for aquaculture

Use of built up areas
Land used for maintenance and restoration of
environmental functions
Other uses of land nec
Land not in use
Other Land
Land area (total)

Inland waters Inland waters used for aquaculture or holding facilities

Inland waters used for maintenance and restoration of
environmental functions
Other uses of inland waters nec
Inland waters not in use
Inland water (Total)

271.
For SEEA AFF purposes the information on the stock of land use should be
allocated by key agricultural product. This is likely to require combining different
sources of information and allowing for variation in cropping practices. The
following paragraphs describe the main accounting entries for the asset account for
land use.
272.
Opening stock: This entry is equal to the total amount of land and inland
waters (in hectares) available at the beginning of the reference period classified by
land use type. The main land use types are: arable land; permanent crops; permanent
meadows and pasture; forest areas; land used for aquaculture; use of built up areas
and land used for maintenance and restoration of environmental functions.

87

273.
The opening stock of arable land and permanent crops is also allocated by
key agricultural product. The selection of key products should be determined on a
country by country basis.
274.
Additions and reductions in stock: There are many and varied reasons for
changes in the stock of land over an accounting period, particularly between different
types of land use. The SEEA Central Framework distinguishes between managed
expansion/reduction and natural expansion/reduction. The first represents an increase
(or decrease) in the area due to human activity, while the second is an increase (or
decrease) in the area resulting from a natural process. No detailed specification for
these entries is provided in the SEEA AFF but where information exists the structure
of the asset account for land use in the SEEA Central Framework should be adopted.
275.
Net change in stock: In the absence of information on additions and
reductions in stock, net change is derived as the difference between closing stock and
opening stock.
276.
Closing stock: This entry is equal to the total area of land or inland waters (in
hectares) available at the end of the reference period. The closing stock of a given
year constitutes the opening stock of the following year.
277.
The asset account for land cover is shown in Table 4.18. It records the
opening and closing stock of land in hectares classified by type of land cover. It also
records the changes in land cover over an accounting period through additions to
stock and reductions in stock. At this stage it is proposed that the focus of accounting
in SEEA AFF be on the opening and closing stock and the net change in stock. This
focus reflects an understanding of the likely available data for completion of a land
cover asset account. Thus, where data on additions and reductions in stock are not
readily available and asset account may still be compiled.
Table 4.18: Asset account for land cover (hectares)
Opening stock

Additions to
stock

Land cover classes

Artificial surfaces
Herbaceaous crops
Woody crops
Multiple or layered crops
Total Crop Land
Grassland
Tree covered areas
Mangroves
Shrub covered areas
Shrubs regularly flooded
Sparsely vegetated areas
Terrestrial barren land
Permanent snow and glaciers
Inland water bodies
Coastal water bodies
TOTAL AREA

88

Reductions Net changes Closing stock

in stock
in stock

278.
The following paragraphs describe the main accounting entries for the asset
account for land cover.
279.
Opening stock: This entry records the total area of land, in hectares, by type
of land cover at the beginning of the accounting period.
280.
Additions and reductions in stock: There are many and varied reasons for
changes in the stock of land cover during an accounting period, particularly between
different types of land use. The SEEA Central Framework distinguishes between
managed expansion/reduction and natural expansion/reduction. The first represents
an increase (or decrease) in the area due to human activity, while the second is an
increase (or decrease) in the area resulting from a natural process. No detailed
specification for these entries is provided in the SEEA AFF but where information
exists the structure of the asset account for land cover in the SEEA Central
Framework should be adopted.
281.
Net change in stock: Net change is the difference between closing stock and
opening stock by land cover type.
282.
Closing stock: This entry is equal to the area of land by land cover type at the
end of the accounting period. The closing stock of one accounting period is equal to
the opening stock of the following period.
A classification of land cover type is presented and described in the SEEA
283.
Central Framework (section 5.6 and Annex 1). The classes are based on the FAO
Land Cover Classification System (LCCS 3). It comprises 11 major classes and 3
sub-classes within the land cover type Cropland. Together these classes provide a
comprehensive set of land cover types. Classes are the following:
Artificial Surfaces: the class includes any type of area with a predominant
artificial surface (e.g.: industrial areas, waste dump deposit, parks).
Cropland: cropland includes 3 classes: i) herbaceous crop ii) woody crop iii)
multiple or layered crop.
Grassland: the class includes any geographic area dominated by natural
herbaceous plants (e.g.: grassland, steppes and savannahs).
Tree Covered Areas: the class includes any geographic area dominated by
natural tree plants.
Mangroves: the class includes any geographic area dominated by woody
vegetation permanently or regularly flooded by fresh or brackish water.
Shrubs Covered Areas: the class includes any geographical area dominated
by natural shrubs.
Shrubs and/or herbaceous vegetation, aquatic or regularly flooded: the class
includes any geographic area dominated by natural herbaceous vegetation
that is permanently or regularly flooded by fresh or brackish water.
Sparsely natural vegetated areas: the class includes any geographic area
where the cover of the natural vegetation is between 2 percent and 10
percent.
Terrestrial barren land: the class includes any geographic areas where
natural vegetation is absent or almost absent. It may include bare soil.
Permanent snow and glaciers: the class includes any geographic area covered
by snow or glaciers permanently or for more than 10 months per year.
Waterbodies: waterbodies are distinguished into two different classes i)
inland water bodies ii) costal water bodies.

89

4.14.3 Measurement issues and possible extensions

284.
From a practical estimation perspective there are a number of challenges in
determining areas of land use, especially in terms of use for the production of specific
product types. For example, it is necessary to consider ways of handling multiple
cropping through the year and multiple crops in the same area of land. The latter may
be particularly problematic if cropping is undertaken within forest areas.
285.
Also, there will be challenges in dealing with seasonal variations whereby
land use and land cover will change in composition between, for example, wet and
dry seasons. Techniques for managing these measurement challenges are discussed
further in Chapter 5.
286.
At country level it is possible that estimates of both land use and land cover
are made although generally from different data sources. If possible, it is important to
compare and reconcile the different estimates of land use and land cover such that a
meaningful overall picture of the two different concepts can be conveyed. In this
regard seeking consistency with other indicators of land use, for example production
statistics, may be a useful line of inquiry.
287.
A useful analytical tool is the compilation of land cover and land use change
matrices in which changes between the opening and closing stock are categorized by
type of change for example reductions in agricultural land due to urbanization or
desertification.
288.
There are links between land accounting and other areas of the SEEA AFF
framework. These links include accounting for soil resources and accounting for
fisheries activity through the measurement of the surface area of inland waters and
marine areas. There are also important links between land accounting and the
emerging field of ecosystem accounting which considers not only the area of land
(referred to as ecosystem assets) but also its condition (quality) and the broad range
of ecosystem services that are generated from the ecosystem assets. The measures of
the condition of land may be quite varied and include measures of biodiversity. In
some agri-environmental indicator sets biodiversity is proxied using estimates of the
number of bird species.
Finally, land cover and land use information provide the starting point for the
289.
development and integration of sub-national data. Use of the varying characteristics
of different land covers and land use is important in the allocation of production and
other economic activity from a national level and the characteristics can be used to
upscale and downscale information appropriately.

4.15 Accounting for soil resources

290.
The SEEA Central Framework introduced a general approach to accounting
for soil resources with a focus on both (i) the area and changes in area of different
types of soil resources within a country and (ii) the volume and changes in volume of
soil resources thus taking into account changes in stock such as erosion. While the
SEEA Central Framework provides a starting point, there has been little work on
accounting for soil resources using the national level SEEA approach and without
such practical experimentation is it not possible for the SEEA AFF to provide a
substantial step forward.
291.
Nonetheless, soil resources are a fundamental environmental asset for
agricultural and forestry production and hence monitoring the state and change in

90

state of a countrys stock of soil resources must be at the forefront of research and
measurement concerning sustainable agricultural production.
292.
To provide a step towards accounting this section describes some of the
current indicators of soil resources that may be usefully applied in combined
presentations and may ultimately form a basis for the development of asset accounts
for soil resources. Most significant are indicators of soil carbon content, and measures
of erosion of soil. These indicators can be used within a general asset accounting
structure as described in the SEEA Central Framework.
NB: This introduction provides the general intent of this section. However, discussion is
ongoing with soil resources experts to be able to give effect to this approach and hence the
remaining text is yet to be drafted.

4.16 Base accounts for economic data for SEEA AFF

4.16.1 Measurement purpose and scope
293.
Section 3.3 provided and introduction to the types of economic data that are
relevant in a SEEA AFF context. Two perspectives are relevant first, recording the
supply and use of agricultural products in monetary terms, and second, recording
extended production and income accounts for agricultural activities and potentially
products. This section describes these two base accounts and the common data
sources and methods.
Table 4.19 shows a monetary supply and use account for agricultural
294.
products. It is structured following a conventional monetary supply and use account
with different agricultural products in the rows and standard components of total
supply and total use in the columns. For each row, total supply (domestic production
plus imports) must equal total use (intermediate consumption, final consumption,
gross fixed capital formation, changes in inventories and exports).
295.
Since the data are in monetary terms it is necessary to consider the
appropriate basis for valuing or pricing the products. Of interest in this regard is the
treatment of taxes and subsidies. Following standard national accounts concepts, total
supply of the producer is measured in basic prices which includes the value of any
subsidies received on a product. Total use and its components are measured at
purchasers prices in which taxes and margins are added to the basic price and
subsidies are deducted. (Subsidies are included in the income earned by the producer
but are not paid by the purchaser of the product but by transfer from the government
to the producer.) In table 4.19 subsidies are explicitly recorded as a component of the
total supply at basic prices.
296.
This table can supply useful information to link production to measures of
final demand and, in conjunction with physical flow account information for the same
products, gave give insights into the effects of price changes.
297.
In concept these data should be available from standard input-output or
supply and use tables that are compiled on a reasonably regular basis at national
level. However, it may be that the level of product detail available in the input-output
table is too aggregated and additional information may need to be used to allocate
these higher level number to the required level of detail. In the process of compiling
such accounts it is likely that the information will be of benefit to the compilation of
input-output tables and supply and use tables more generally and close co-operation
between the compilers is recommended. The integration and consideration of

91

physical flow accounts at the same time as monetary information is likely to be of

considerable benefit.
Table 4.19 Monetary supply and use table for agricultural products (currency units)
SUPPLY TABLE
Domestic production
Imports
of which:
Total at basic Subsidies on
products
prices

USE TABLE
Total Supply Total supply Intermediate Household Gross fixed
at basic
at
consumption consumption capital
prices
purchasers
formation
prices

Changes in
inventories

Exports

Agricultural products
Food Crops
Maize
Rice
Wheat
Palm oil
Sugar
Potatoes
Other food crops
Total
Non-food Crops
Vegetable fibres
Fodder crops
Rubber, natural
Tobacco, unmanufactured
Total
Livestock products
Catlle and buffalo meat
Sheep and goat meat
Chicken meat
Other poultry
Pigmeat
Other meat
Total Meat
Honey
Milk
Eggs
Total Agriculture
Forestry
Fisheries
Aquaculture
Capture fisheries
Total Fisheries

298.
Table 4.20 shows an extended production and income account for
agricultural activities. It is based around the standard production account of the SNA
but extended to incorporate other information that is relevant in the articulation of a
complete production function. For the monetary supply and use table described
above, the use of a product level perspective is quite a straightforward choice.
However, in the description of a detailed production function the choice of
perspective is less clear. Options include a product perspective, a broader activity
perspective or a more focused process perspective. While in theory a production
function exists at the finest level of product x process, there may be distinct
challenges in compiling such a view since a number of inputs, for example
management and financing inputs, may only be relevant at the business level. Hence
where a single business produces more than one product or uses more than one
process, the allocation of inputs may be difficult.
299.
Given these consideration and the general intent in this area of the SEEA
AFF to support comparison across agriculture, forestry and fisheries, the design of the

92

Total Use at
purchasers
prices

account in Table 4.20 uses a broad activity perspective. Depending on the data
available and the types of data allocation that might be possible (for example using
specific micro level information), a more detailed account describing product and
process level details might be constructed, at least for some variables in the table.
Table 4.19 Extended production and income account for agricultural activities (currency units)
Domestic
production
(1)

Compensation Gross
Gross fixed
of employees operating
capital
Intermediate Gross value
surplus &
formation
consumption
added
Gross mixed
income]
(2)
(3) = (1)-(2)
(4)
(5) = (3) - (4)
(6)

Consumption Employment
of fixed capital
(Depreciation)

(7)

Agriculture
Cropping
Livestock grazing
Other agricultural activity
Total Agriculture
Forestry
Plantation timber
Other forestry
Total Forestry
Fisheries
Aquaculture - inland
Aquaculture - marine
Capture fisheries - inland
Capture fisheries - marine
Total Fisheries
Total Agriculture, Forestry and Fisheries
Total Economy

300.
The starting point for the population of this account will be the standard
input-output and supply and use tables. These tables should provide the core
information on production and incomes for broader types of agricultural activity (e.g.
cropping, livestock, forestry, fisheries). Of importance is that data from this source
has been reconciled with the broader industry and economy wide information that
relates directly to macro economic measures of economic activity. Thus, using this
information as a starting point provides an appropriate context and sense of relative
importance for the data.
301.
To go to finer levels of detail a range of information sources will be relevant
including industry sources, detailed agricultural surveys and physical data on inputs
to agricultural production. Within this range of potential data sources, of particular
interest are cost of production surveys which focus on collecting information that
details inputs structures for specific agricultural products and processes.
302.
Aside from ensuring good alignment between the scope of the cost
information being collected and the definitions of costs relevant for national accounts
purposes, the main challenge in using these data will relate to the way in which cost
of production data are scaled to national level as opposed to reflecting a limited set of
case studies of particular farms. It is in this situation however that the accounting
framework and working form the outside in can provide significant advantages in
the compilation of information useful for broader policy analysis.

93

(8)

4.16.2 Measurement issues and possible extensions

303.
The compilation of national accounts input-output tables and supply and use
tables generally involves specialist knowledge. Chapter 5 provides some details and
links to relevant guidance.
304.
The structures proposed above are particularly aimed at ensuring a base level
of monetary data can be brought together to link to the data in other parts of the
SEEA AFF framework. Possible extensions of these structures are many and varied
depending on the focus for analysis.
305.
One extension would be to focus on capital formation and investment. For
example within the general category of gross fixed capital formation it may be
relevant to identify expenditure on machinery and equipment and research and
development as they pertain to agricultural, forestry and fisheries activity. Also on
capital formation, an extension to consider the stock and changes in stock of
supporting infrastructure such as roads, rail and port facilities may be of interest.
Considerably more detail may be used to expand the column of information
306.
on intermediate consumption using information on the cost of production. This would
highlight the relative significance of different inputs such as energy, materials,
fertilizer and pesticide and labour.
The detail may also be expanded by incorporating information on the size
307.
and characteristics of economic units involved in agriculture, forestry and fisheries.
For example, information on the income by type of activity may be cross classified
by size of economic unit (employment or production) or by the proportion of output
that is exported. The incorporation of such information may assist in understanding
differences between economic units and hence the effect of policies. In this context
understanding subsidies paid by type of economic unit may be of particular interest.
308.
Finally, given that the information structured in the tables above is sourced
from input-output tables, it would be possible to consider relating the information to
the broader input-output tables and hence making connections between agricultural,
forestry and fisheries activities and the supply chains they support in food, textiles
and materials. These upstream activities are not the focus of the SEEA AFF but, in
general, a good articulation of the links between the primary industries and the
environment they are dependent on will be meaningful to secondary and tertiary
industries in terms of better understanding the possible risks facing their supply
chains.

94

Chapter 5: Overview of implementation and compilation of SEEA AFF

This chapter will provide an overview of approaches to the implementation and
compilation of SEEA AFF accounts. It is based on lessons learned and advice provided
on the development of SEEA accounts more generally that are described in a range of
sources, for example the SEEA Implementation Guide. Of particular focus in that guide
are steps involved in planning accounting work and developing collaborations with other
agencies.
The chapter does not aim to provide an exhaustive set of data sources and methods.
Rather the intention is to provide an indication of the types of sources and methods that
might be investigated should implementation of SEEA AFF be undertaken.
It should be clear that the SEEA AFF crosses over a number of data domains about which
specific statistical and accounting guidance are already available beyond the content of
the SEEA Central Framework. Examples include the domains of water, energy, fisheries,
and forestry for which SEEA documents have been produced. Any work in these areas
from the perspective of SEEA AFF should use these materials and ensure connection to
any SEEA implementation work currently underway within a country. In addition, there
are a number of non-SEEA projects that have developed relevant methodologies, such as
the measurement of GHG emissions from agriculture, that will be referenced to provide a
starting point for national compilers. Overall, the aim of this chapter is to provide links to
relevant material rather than present or reinvent the material directly.
Notwithstanding the connection to existing materials and implementation work, the
intention to focus on agricultural products within the SEEA AFF is a perspective that may
not be the most common focus of SEEA and related statistical work. Particularly
concerning environmental flows such as water use, energy use and emissions, the
calculation of estimates attributable to individual products as distinct from attribution to
an activity or industry, may be challenging. Most probably, it will require the use of
alternative data sources and some modeling of estimates. Some suggestions for ways
forward will be proposed in this chapter.
The chapter will also introduce potential links to the outputs from the Global Strategy to
Improve Agricultural and Rural Statistics and broader initiatives concerning the
improvement of national statistical systems and statistical processes.
It is relevant to see the compilation of estimates and accounts for SEEA AFF as a topdown exercise where industry level and economy wide data are progressively allocated
to finer level activities and products. To support this process of allocation to product level
it is worth recognizing that there are likely to be bottom-up studies of production
processes at the product level both from economic and ecological perspectives. Engaging
with the relevant agricultural economists, scientists and industry specialists (e.g.
associations of coffee producers) in the development and validation of base accounts is
likely to be a productive exercise.
Given the breadth of the SEEA AFF framework and the reality that different countries
will be faced with different realities of data availability, no single approach or solution
can be outlined. Indeed part of accounting is to be able to develop and improve methods
and estimation over time in response to changing data requirements and changing data
availability.
As part of the development of the SEEA AFF a small number of country based
assessments have been undertaken and the lessons from these assessments will be brought
together to provide additional material and experience for those wishing to commence
compilation of SEEA AFF accounts.

95