FARM NET VALUE ADDED IN SCOTLAND AND THE DESIGNATION OF AREAS FOR RURAL DEVELOPMENT ASSISTANCE

Recent procedures for selecting disadvantaged areas for European Community rural development assistance have specified criteria including low levels of agricultural income and GDP per capita, and proportionately high levels of agricultural employment. The first of these is measured by Farm Net Value Added per Annual Work Unit (FNVA per AWU). This paper presents a methodology which estimates FNVA and AWU for Scottish parishes using data from the Farm Accounts Scheme and the June agricultural census. The ratio of FNVA to AWU is then estimated for various aggregations of parishes, such as Scottish Districts, Regions, and areas currently designated for various rural development programmes. Although only one among several important criteria for targeting rural development aid, the pattern of FNVA per AWU generally supports the current allocation of funding. The results also give some indication of priority areas for future targeting on a more local scale.