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Standard gross margin / SGM
Definition
The Common Agricultural Policy reform of 2003 establishing the decoupling of agricultural aid connected to the production led to create the concept of Standard gross production (SGP) which succeeds to the ancient concept of Standard gross margin (SGM) henceforth obsolete. It ensues a new European typology of farms.
This new classification of the farms according to their main production (type of farming, TF) and according to their size (economic farm size) applies for the first time for the results of the agricultural census of 2010 (then to surveys "structure") as well as in the farm accountancy data network
The total SGM of a farm was obtained by applying a coefficient, known as the "SGM coefficient", to each hectare of crops (or fallow land) and to each head of livestock, then adding these partial SGMs together. It was expressed in European Size Units (ESU) or in "hectares of wheat equivalent". SGM coefficients were calculated on the reference year 2000. They were very similar to the 1996 base coefficients.
Note
Source : service de la statistique et de la prospective (SSP), ministère chargé de l'agriculture (site : http://agreste.agriculture.gouv.fr)
