Method for calculation of total farming area and production value of farms in Vietnam

Method for calculation of total farming area and production value of farms in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Farm classification in Vietnam

Farm classification according to Article 2 of Circular 02/2020/TT-BNNPTNT is as follows:

- Specialized farms are classified based on the type of agricultural production (crop production, animal husbandry, forestry, aquaculture or salt production) whose production value accounts for more than 50% of the annual production value of the farm. Specialized farms include:

= Arable farms;

= Livestock farms;

= Tree farms;

= Fish farms;

= Salt farms.

- A farm is classified as a mixed farm when none of its types of agricultural production accounts for more than 50% of its annual production value.

2. Farm economy criteria in Vietnam

Farm economy criteria according to Article 3 of Circular 02/2020/TT-BNNPTNT are as follows:

- For specialized farms:

= Arable farms must have an average production value of at least VND 1,0 billion/year and total farming area of at least 1,0 ha;

= Fish farms must have an average production value of at least VND 2,0 billion/year and total farming area of at least 1,0 ha;

= Livestock farms must have an average production value of at least VND 2,0 billion/year and a farming scale provided for in Article 52 of the Law on Animal Husbandry and guiding documents.

= Tree farms must have an average production value of at least 1,0 billion/year and total farming area of at least 10,0 ha;

= Salt farms must have an average production value of at least 0,35 billion/year and total farming area of at least 1,0 ha.

- Mixed farms must have an average production value of at least VND 2,0 billion/year and total farming area of at least 1,0 ha.

3. Method for calculation of total farming area and production value of farms in Vietnam

According to Article 4 of Circular 02/2020/TT-BNNPTNT, the calculation of the total production land area and production value of the farm is as follows:

- Total farming area mentioned in Article 3 of Circular 02/2020/TT-BNNPTNT is the total area of land that a farm may use for commercial farming according to regulations of laws on land, including land for crop production, animal husbandry, forestry, aquaculture and/or salt production and land on which infrastructure for commercial farming is located at the time of declaration.

- Production value per year is the production value that a farm generates in one of the three years preceding the declaration year and is the sum of the production values of all harvest periods in such year.

Newly established farms with no product shall have their production value estimated based on their production plan and performance.

4. Guidelines for monitoring, statistical mechanisms and reporting regimes for farm economy in Vietnam

Guidelines for monitoring, statistical mechanisms and reporting regimes for farm economy according to Article 5 of Circular 02/2020/TT-BNNPTNT are as follows:

- Commune-level People’s Committees shall:

= Provide guidelines and information on farm economy criteria for individuals and households engaged in agricultural business in their communes;

= Monitor, keep statistics on and update changes concerning farm owners, farming area and types of farms;

= Keep written records of farm economy development in their communes using the form in Appendix I enclosed with Circular 02/2020/TT-BNNPTNT.

- For reports on farm economy, which are made using the form in Appendix II enclosed with Circular 02/2020/TT-BNNPTNT:

= Commune-level People’s Committees shall submit annual consolidated reports on farm economy in their communes to district-level People’s Committees; district-level People’s Committees shall then submit consolidated reports to provincial People’s Committees (via Departments of Agriculture and Rural Development);

= Departments of Agriculture and Rural Development shall submit annual consolidated reports on farm economy in their provinces to provincial People’s Committees and Ministry of Agriculture and Rural Development before December 19 of every year;

= Report submission and receipt and data collection period are provided for in Clause 4 Article 8 and Clause 4 Article 12 of Decree 09/2019/ND-CP on reporting regimes of administrative authorities.

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