Auswirkungen des Euro in den landwirtschaftlichen Betrieben

Manfred Köhne

Published: 01.10.1999  〉 Heft 10/1999  〉 Resort: Articles 
Submitted: N. A.   〉 Feedback to authors after first review: N. A.   〉 Accepted: N. A.

ABSTRACT

Effects of the Euro on Agricultural EnterprisesThe introduction of the euro will affect both the procedures in agricultural enterprises and their economy. Effects on procedures concern bookkeeping, further data ascertainment and data analysis, adjusting the equity in companies and principles of contracts. The bookkeeping must be converted to euro by the financial years ending after December 31, 2001. With that, also other scopes of accounting must be converted to euro including operation reviews in different production branches of farming, farm comparisons, operational plannings and appraisals. Changeover-costs for consulting services and materials are tax-deductible. In case of legal entities subscribed capital and shares of it must be adjusted to the new requirements. Existent contracts hold good after the introduction of the euro. Amounts in DM must be converted to euro. But in contracts referring to specialinterest rates, there is a need for adaptation. Also in the field of stable value clauses some modifications are to be taken into account. By removing special exchange rates for agriculture on January 1, 1999, German administrative prices have be come slightly lower, whereas the reform compensation payments have become slightly higher. The removal of the discount rate credits makes shortterm financing more expensive. Enter prises in volved in cross-border activities or in direct marketing will experience effects on their operational price policy. It is difficult to estimate the indirect effects of the euro introduction on enterprises themselves. The removal of pricereductions for agricultural com modities caused by exchange rates, as well as the higher guaranty in agricultural exports will bring positive effects. But in the medium and long run, disadvantages could arise by a lower euro stability, higher interest rates and by an approximation of the different turnover taxrates. In future the farmers will not have to work under minor but under higher risks.
CONTACT AUTHOR
Prof. Dr. Manfred Köhne, Institut für Agrarökonomie, Platz der Göttinger Sieben 5, Georg-August-Universität Göttingen, D-37073 Göttingen, Tel.: 0551/39-4842, Fax: 0551/39-2030, e-mail: mkoehne@uni-uaao.gwdg.de.
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