The drought of 2018 has widened the income differences between companies, according to a new quick scan by Wageningen Economic Research (WUR). Minister Carola Schouten (Agriculture, Nature and Food Quality) announced this Friday 23 November in a letter to Parliament.
The figures on the possible income effects of 2018 show that the dairy farmers are slightly better off compared to the figures presented in August. This is the result of the windfall in crop yields, the WUR reports in the report.
On the other hand, the income of arable farmers continues to fall, which is the result of lower seed potato and beet prices. The yields of the seed potatoes are also lower than expected in August.
Decrease in income
The WUR has calculated the estimated decrease per unpaid work unit for various sectors. According to WUR, companies with starch potatoes will have to deal with a decrease of €38.000. This reduces the income to €29.500 per unpaid annual work unit. The income effects for the other arable farmers are smaller, but show a sharp drop (-€4.000 to €41.500).
The average income for dairy farms falls in the revised forecast by €14.000, resulting in a decrease of €21.500 per unpaid annual work unit. Here it is mainly the high feed costs and disappointing grass and maize yields that throw a spanner in the works.
What do the numbers mean?
The WUR will publish the definitive income estimate on Tuesday 18 December. This will show the impact of the 2018 drought on income. Linda de Bie (WUR) will be present in the afternoon during the National Economic Agricultural Congress of Boerenbusiness explain the numbers.
Based on the theme 'the economic health of the sector and the future sustainable revenue model', De Bie examines what the latest figures (in combination with sustainability) mean for your business as a farmer. The focus is on the largest sectors: arable farming, dairy farming and pig farming.
Tickets are available through www.agriculturalcongress.nl† Subscribers of Boerenbusiness can order 2 tickets for free.
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