Given i agricultural activities, including crops, livestock, fisheries and forestry activities, and j [1,…,n] small scale food producers defined as in the first section as a subset of all N [1,…,k] food producers, the SDG indicator 2.3.2 must be computed using the following formula:

$S D G 2.3.2 = I_{2.3.2}^{t} = \sum_{j = 1}^{n} (\sum_{i} {(V}_{i j}^{t} p_{i j}^{t} - C_{i j}^{t}) / n$

where:

$V_{i j}^{t}$ is the physical volume of agricultural product i sold by the small scale food producer j during year t;
$p_{i j}^{t}$ is the constant sale price received by the small scale food producer j for the agricultural product i during year t;
$C_{i j}^{t}$ is the production cost of agricultural product i supported by the small scale food producer j during year t;
$n$ is the number of small-scale food producer.

In details, physical volumes $V_{i k}^{t}$ are derived, for each k producer, from the following items:

Crop revenues: crop sold, crop for own consumption, crop used as feed, crop saved for seed, crop stored, crop used for by-products, crop given as gift, crop used for paying labour, crop used for paying rent, crop used for paying inputs, crop given out in sharecropping agreement (sharecrop out), crop wasted. Similar criteria apply for the computation of revenues from tree crops and forestry products.
Livestock revenues: livestock sold (alive), livestock gifts given away (component can only be kept if stock variation is possible to construct), livestock by-/products sold, livestock products self-consumed, livestock by-products self-used (also a cost in crop, for example dung used as fertilisers), livestock by-/products pay away, livestock by-/products credit away.
Forestry revenues: products sold, forestry products for own consumption, forestry products stored, forestry products used for paying labour, forestry products used for paying rent, forestry products used for paying inputs, forestry products given out in sharecropping agreement, Forestry products wasted.
Fisheries revenues: captured fresh fish sold, captured processed fish sold, captured fresh fish for own consumption, captured processed fish for own consumption, traded fresh fish sold, traded processed fish sold.

Production costs $C_{i j}^{t}$ are meant to include operating costs. These comprise all variable costs (payments in cash and kind of agricultural inputs as fertiliser, seeds, and occasional labour) and fixed costs (hired labour, land rent and technical assistance costs).

In more details, costs $C_{i j}^{t}$ generally include the following items:

Costs of crop activities: inputs paid in cash, land rent, technical assistance/extension costs, crop saved for seed, crop used for paying labour, crop used for paying rent, crop used for paying inputs, crop given out in sharecropping agreement (sharecrop out), crop wasted, crop used for producing by-products, total value of input purchased, including those reimbursed in kind
Costs of livestock activities: livestock bought, livestock additional expenditures, crop used as feed, technical assistance/extension costs for livestock,
Costs of forestry activities: input costs (seedlings, fertilisers, hired labour, etc.), machine rental costs, land rental costs, other related costs.
Costs of fisheries and aquaculture activities: fishing gear expenditures, hired labour expenditures, trading activities, fresh fish purchases, processed fish purchases, other related costs

To obtain comparable results across countries in the case of income, values must necessarily be expressed in International Dollars at Purchasing Power Parity (PPP $), based on the conversion provided by the World Bank International Comparison Project.

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Rætta metadátur: 2.3.2