Economic size (SO) at AFIR: how to calculate the threshold for DR-14 and DR-12
Standard Output (SO) is the value of a farm's standard production, in euro. AFIR calculates it using the SOC 2020 coefficients. For DR-14 you need €4,000–11,999 SO (€2,000 or €2,300 in some sectors), and for DR-12 at least €12,000 SO.
Todos & Company editorial team · EU funding consultancy since 2006
The economic size of a farm, expressed in Standard Output (SO), is the total value of the farm's standard production, in euro. AFIR uses it as the first eligibility filter for investment interventions under the CAP Strategic Plan 2023–2027. In the 2026 call window, the calculation uses the SOC 2020 coefficients. Thresholds differ from one intervention to another: between €4,000 and €11,999 SO for DR-14 (small farms) and at least €12,000 SO for DR-12 (young farmers and farmers aged up to 45).
In brief
- Definition: standard output is the value of the production of each agricultural characteristic (crop or category of animals), corresponding to the average situation in a region. Economic size is the sum of these values for the whole farm, in euro.
- Legal acts: Implementing Regulation (EU) 2015/220 (Annexes V and VI) and Delegated Regulation (EU) No 1198/2014 (Art. 4, reference period).
- Units: the hectare for crops, the head for animals, 100 heads for poultry, the hive for bees, 100 m² for mushrooms.
- What is not included in the value: VAT, product taxes and direct payments.
- Coefficients used by AFIR: SOC 2020, from the table included in the Funding Application (DR-14 and DR-12).
- DR-14 thresholds: €4,000–11,999 SO in general; €2,000–11,999 SO for livestock farms with native breeds and for flowers, aromatic, medicinal and ornamental plants; €2,300–11,999 SO for vegetable farms.
- DR-12 threshold: at least €12,000 SO when the application is submitted.
What is standard output and where do the coefficients come from?
Regulation (EU) 2015/220 defines standard output as "the value of the output of each agricultural characteristic corresponding to the average situation in a given region". The value of output includes the main product and the by-product, valued at farm-gate prices. VAT, product taxes and direct payments are deducted from it. Standard output is expressed over 12 months. For crops or animals with a shorter or longer cycle, a 12-month equivalent is calculated. If the farm has herbivores, pastures and fodder are considered to be intended for feeding them and form part of the output attributed to herbivores and fodder.
The coefficients are average values over five consecutive years. Under Art. 4 of Delegated Regulation No 1198/2014, the reference period runs from year N-5 to year N-1, and the coefficients are called "N-3 standard outputs". The year in the name (for example, 2020 in SOC 2020) is therefore the middle year of the five-year period. The coefficients are updated at least on the occasion of each EU survey on the structure of agricultural holdings. For this reason, a calculation made with an older set (SOC 2013 or SOC 2017) is no longer valid for call windows where the guide requires SOC 2020.
In addition to the AFIR thresholds, Regulation 2015/220 divides holdings into 14 economic size classes. The classes run from under €2,000 (class I) to over €3,000,000 (class XIV). The first thresholds are €2,000, €4,000, €8,000, €15,000, €25,000, €50,000 and €100,000.
How to calculate it, step by step
- Draw up the farm inventory: all areas by crop and all herds of animals, poultry and bee colonies. The table is completed with all the holding's assets, even if the project concerns only one production unit.
- Take the SOC 2020 coefficient for each crop or category of animals, from the table in the Funding Application.
- Multiply each area (in ha) or each herd or flock (heads, hundreds of poultry, hives) by its coefficient.
- Add up the results. The total is the economic size, in euro SO.
- Calculate the share of each sector (crops, vegetables, livestock), because the funding component and the applicable threshold depend on it.
Illustrative example (the coefficients below are hypothetical and only show the method; the real values are in the SOC 2020 table in the Funding Application). A farm has 5 ha of wheat, with a hypothetical coefficient of €700/ha, 0.5 ha of field vegetables, at €9,000/ha, and 10 dairy cows, at €1,200/head. The results are: 5 × 700 = €3,500; 0.5 × 9,000 = €4,500; 10 × 1,200 = €12,000. The total is €20,000 SO. The farm exceeds the €12,000 threshold for DR-12, but is above the €11,999 SO limit of DR-14. The livestock sector accounts for 60% of SO, so it is the majority sector.
Thresholds in AFIR interventions and the majority SO rule
DR-14 – small farms. The farm must have €4,000–11,999 SO, or €2,000–11,999 SO for livestock farms with native breeds and for flowers, aromatic, medicinal and ornamental plants, and €2,300–11,999 SO for vegetable farms. The threshold is chosen according to the sector that generates most of the SO. The guide gives the example of a farm with 35% vegetable SO, 31% native breeds and 34% flowers and aromatic plants: the vegetable threshold applies, and the SO from vegetables must be at least €2,300. For farms with native breeds, animals of these breeds must generate at least €2,000 SO. The breed is proven by a zootechnical or origin certificate.
DR-12 – young farmers and farmers aged up to 45. At submission, the farm must have at least €12,000 SO, calculated with SOC 2020. SO also decides the classification: the project falls under the "livestock sector" component if animals, poultry and bees account for 50% + 1 of total SO. The figures here come from the DR-12 guide published by AFIR. Check in the final guide for the call window whether they have remained unchanged.
For other interventions (for example DR-21), take the threshold strictly from the guide for that call window. Do not carry it over from one intervention to another.
What AFIR evaluators check
- Areas are checked in IACS-APIA, in the single payment application campaign of the year of submission. If the areas do not match, the evaluator requests certification from APIA.
- Animals are checked in the ANSVSA/DSVSA Holdings Register and with ANZ. For poultry, small animals without ear tags and bees, you submit the certificate from the local veterinarian, issued no more than 30 days before submission.
- Differences in areas or herds arising from APIA/AFIR checks oblige the applicant to redo the SO table and the economic and financial forecast.
- Investment sector: under DR-14, investments are eligible only in the sectors for which you have SO at submission. If the SO comes only from livestock, you can invest in the crop sector only for the fodder base.
- Maintaining the size: during the contract, SO cannot fall by more than 15% and in no case below the minimum threshold of the intervention. Growth is not limited.
Common mistakes
- Using an old set of coefficients (SOC 2013 or SOC 2017) or an outdated calculator.
- Leaving some areas or animals out of the table because the project does not concern them. The table must cover the whole holding.
- Differences between the areas in the application and those in IACS, or animals not registered with ANSVSA.
- Failing to check the majority sector, which can change the threshold and the funding component.
- Artificially enlarging or fragmenting the farm just to reach the threshold. HG 1570/2022 allows AFIR to refuse or recover support if it finds artificially created conditions.
What this means for your business
Our recommendation is to calculate the SO before any other preparation of the project. The right intervention depends on it (DR-14 below €12,000 SO, DR-12 from €12,000 SO upwards), as do the funding component and the investments you can make. Make sure in good time that your areas are declared to APIA in the campaign of the year of submission and that your animals are registered with ANSVSA/ANZ. Then do the calculation directly in the SOC 2020 table in the call window's Funding Application. If you are close to a threshold, leave a safety margin: differences found by APIA during checks can take you out of the range. You can start with the eligibility check. For small farms there is the DR-14 page, and for young farmers the DR-12 page.
Frequently asked questions
What does "SO" mean in the AFIR guides?
SO (Standard Output) is the average value of the output of a crop or a category of animals, in euro, per hectare or per head. Added up for the whole farm, these values give the economic size of the holding.
Which coefficients apply to the 2026 call window?
The DR-14 and DR-12 guides require the SOC 2020 coefficients, from the table included in the Funding Application. A calculation made with SOC 2013 or SOC 2017 is not accepted for these interventions.
Do APIA subsidies count towards SO?
No. Regulation (EU) 2015/220 excludes direct payments, VAT and product taxes from the value of standard output.
Can I enlarge my farm after I receive the funding?
Yes. The DR-14 and DR-12 guides do not limit growth in economic size after implementation. During the contract period, however, the SO cannot fall by more than 15% or below the minimum threshold of the intervention.
Do activities that are not part of the project also have to be included in the table?
Yes. The table of standard output coefficients must be completed with all the agricultural land and all the animals on the holding, even if the project concerns only one production unit.
Official sources
- Implementing Regulation (EU) 2015/220 – Annexes V and VI (economic size, standard output)
- Delegated Regulation (EU) No 1198/2014 – Article 4, reference period for standard outputs
- AFIR – Applicant's guide DR-14, 2026 call window
- AFIR – Applicant's guide DR-12
Information checked on 27 September 2026. Conditions may be amended by the managing authority — check the guide in force before submitting.