DLG standard 'Sustainable Arable Farming'

Nitrogen usage efficiency

The cross-site nitrogen usage efficiency describes the total loss potential of reactive N compounds and can be influenced by agricultural measures. In the N-efficiency the structure (animal stocking rate, crop rotation), the intensity (fertiliser and crop protection agent use) and the design of procedures (fertiliser application procedures) are directly or indirectly reflected in the nitrogen balance (N balance). The lower the N balance, the greater the risk of environmentally-relevant N emissions.

Phosphorus balance

Phosphorus is the main nutrient element in agricultural production. Supplying crops with sufficient phosphorus should therefore be ensured to safeguard yields and product quality. In order to prevent the loss of natural soil fertility due to an undersupply in the long term, phosphorus that is removed must be accordingly replaced. Its entrainment into surface waters due to oversupply must also be prevented. Among other aspects, the structure (animal stocking rate, crop rotation), the intensity (fertiliser use) and the design of procedures are directly or indirectly reflected in the phosphorus balance (P balance). The P balance can be influenced by agricultural measures.

Humus balance

The importance of the humus balance lies in the complex influence that the soil organic matter has on virtually all soil characteristics and functions. Supplying humus to soils that are used for arable farming not only serves to ensure yields, but is also of ecological relevance, particularly due to the control of carbon and nitrogen turnover. An oversupply of organic matter, which can lead to uncontrolled mineralisation and increased nutrient losses, is equally as negative as an undersupply. The cultivation-related supply of arable land with humus (the humus balance refers solely to this) is dependent on the cultivation structure and crop rotation as well as organic fertilisation.

Greenhouse gas balance

Farming is caught between the need to increase production and the impact it has on its biotic and abiotic environment. Due to the steadily rising consumption of fossil fuels, the use of mineral and organic nitrogen fertilisers, and livestock farming, agriculture accounts for 15 % of global anthropogenic climate change, which is by no means a negligible contribution. Certain management practices can influence the greenhouse gas emissions recorded within the system under consideration. The assessment is carried out in accordance with the published methodology. All climate-relevant gases (CO₂, N₂O, CH₄) from agriculture are included in the assessment.

Crop protection

Chemical crop protection is a key factor in rationalising and safeguarding agricultural production, but is nevertheless the one that is most extensively subject to public criticism. As a sustainable strategy, integrated crop protection is a holistic approach in which precedence is given to preventive measures and non-chemical defence against harmful organisms and the use of chemical crop protection agents is limited to the extent necessary. Due to its comprehensive ties to production, economy and ecology, taking it into consideration in the sustainability assessment is imperative.

Biodiversity

For a long time, agriculture contributed to increasing and maintaining species and biotope diversity in the open cultivated landscape. A decline in species, which is regarded as having a negative impact on biodiversity, was documented in agricultural ecosystems as agriculture was restructured and intensified. Today, agriculture is one of the drivers of biodiversity loss. This needs to be addressed through measures-orientated cultivation that combines biodiversity with productive and high-quality agriculture.

Soil protection

Soils are the basis for human, animal and plant life. At the same time, they undertake the majority of the material conversion and decomposition processes in the natural environment. They are filters and reservoirs for the water and matter balance, deposits for natural resources and energy sources as well as the basis for agriculture and forestry. Agriculture therefore has a particular duty to handle its soils responsibly and to maintain and, if possible, actually enhance their fertility. The most important objective in this is to ensure sustainable cultivation, even in the light of ecological and economic constraints. A variety of individual factors have to be taken into consideration in this process.

Water protection

Groundwater is the most important resource for our drinking water. Consistent water and water body protection is accordingly important. This is not only concerned with health aspects, but also with the maintenance of biodiversity. Nitrates and phosphates as well as crop protection agent and veterinary medicine residues pollute bodies of water. The standard assesses selected site-specific measures and indicators relating to water body and nutrient management. However, efficient land use and water protection are not necessarily mutually exclusive.

Remuneration 

The remuneration of dependent employees is a central social sustainability indicator. The indicator assesses remuneration on the basis of the criteria and benchmarks set out in the DLG standard. Conversely, remuneration that is too low leads to dissatisfaction and possibly reduced performance. Such a situation is regarded as extensively unsustainable.

Working hours

The employees' working hours and leisure time should be in a balanced ratio. Only then can it be assumed that this production factor can be used efficiently in the long term and that the workforce is not overtaxed. Among other aspects, the German Working Hours Act specifies the scope of working hours, rest breaks during work, night work, work on Sundays and public holidays and regulations for exceptions. Further regulations can be found in the framework collective bargaining agreement for employees in agricultural businesses.

Holiday

Recreational leave is an important social achievement on the part of our society and, as such, similarly expresses appreciation of dependent employees. Holiday helps to maintain the employees' health in the long term. The holiday entitlement of dependent employees is set out in the German Federal Holiday Act (BurlG). Further regulations are set out in the framework collective bargaining agreement for employees in agricultural businesses (employment contract). 

Training and advanced training

The training and advanced training of a business's employees is a fundamental prerequisite for a business to participate in technical and social progress. The training and advanced training criterion indicates the importance attached to the staff employed within the business. The hypothesis underlying the indicator states that a business that does not invest in its employees cannot operate sustainably in the long term.

Employee concerns

The employees within agricultural businesses are usually most familiar with the systems that they control and can provide valuable tips on good business management. Nine questions are used to assess the extent to which employees are integrated into the active development of the company and how their needs are recognized. These include written work profiles and gender-independent pay.

Employer

As the owner, the employer is subject to different standards than the employees. However, appropriate working hours, holiday and regularly attending further and advanced training courses are also crucial to the continued existence and therefore the sustainability of the business.

Work safety and health protection

Agriculture is one of the riskiest industries of all. The special characteristics of this industry, such as working outdoors, in greenhouses, with heavy machinery and animals and using crop protection products, can lead to increased risks for the employees. In order to highlight the importance of this indicator, a comprehensive catalogue of measures is used to ensure the work safety and health protection of employees by asking about training and work/protective clothing.

Social commitment

The social integration of a business in its environment is a key factor for its social acceptance. The social commitment and communication of all of a business's employees are therefore an important aspect. This indicator is intended to quantify the level of social commitment that the business manager and employees display for the business. In order to document the various social activities, the indicator contains three sub-indicators: 'Public commitment', 'Business's communication with the public realm' and 'Professional commitment'.

Calculated ordinary result

The calculated ordinary result coincides with the net result of performance cost accounting, which is also referred to as calculated profit or entrepreneurial profit. It shows whether the entrepreneurial activity itself is compensated in addition to covering the costs or compensating all input factors.

Net cash flow (cash flow II)

This corresponds to the withdrawable financial surplus, i.e. the financial strength of a financial year. These free funds are available for distribution, for expansion investments or for the repayment of debt capital. This is a financial and success indicator which shows the extent to which a company or business unit has generated or can generate funds by itself. A positive value means positive liquidity.

Exploitation of the long-term loan repayment boundary

This key performance indicator is a liquidity ratio and shows the company's possible long-term financial ability to repay and pay interest on debt capital. The actual loan repayment refers to the long-term loan repayment boundary in this case. It therefore shows the extent to which the loan repayment boundary is being exploited.

Profit rate

The profit rate can provide information on both the profitability and the stability of a business. A high profit rate indicates that price fluctuations have less of an impact on income. It can also provide information on the quality of the company's management and the company's performance. A comparison is only sensible between companies with a similar production structure.

Equity ratio

The equity ratio is one of the key stability indicators. It assesses the business's capital strength and is an indicator of its creditworthiness. It can also be used by business managers as the basis for financing decisions.

Company code/ compliance regulation

The company code includes measures and processes that ensure compliance with legally binding and ethical regulations within the company. As part of the DLG 'Sustainable Agriculture' programme, each farm should formulate a company code and guarantee the provision of truthful data by signing the compliance regulation. 

Risk management

The requirements for agricultural risk management pose a constant challenge in business management. As part of the DLG 'Sustainable Agriculture' programme, farmers should therefore address the risks to their company and develop measures to avert or mitigate these risks.