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The main reason of the slow progress in reforming agricultural policies and farming practices towards more sustainable agricultural and rural development is that the subsidy system is still based on increasing production. The profit or gross margin figures used as indicators of the efficiency of farming activities give wrong signals for farmers.

 

From the aspect of sustainable and multifunctional agriculture, a value added calculating model radically differs from the traditional accounting approach which is unable to make difference between the origin of inputs and services used up in the production process.


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