News Income estimate
Farmer's income sharply down in 2018
All agricultural entrepreneurs saw their average income fall in 2018. Wageningen UR and Statistics Netherlands calculated that income fell by almost €1 in 30.000 year. 2017 was a good year for many livestock farmers. The situation is different for arable farmers, where incomes remain stable and low.
The average income for agricultural and horticultural companies is estimated in 2018 at €42.000 per unpaid annual work unit. This represents a drop of nearly $30.000 from 2017, which was an all-time high. The 5-year average is €51.000 per unpaid annual work unit. The tree nursery sector is the only sector to record a growth in income.
Hard blows in pig farming
Sow farms see their income fall the hardest. It decreases from €200.000 to -€86.000. The fattening pig farmers are also experiencing a significant dip, although it is less significant (with a drop from €72.000 to €26.000). The average income on closed pig farms falls from €159.000 to -€40.000.
The reasons for the sharp fall in income are, among other things, the unfavorable price development of piglets and finishing pigs. On the other hand, feed and manure disposal costs rose.
High feed costs
Dairy farms saw their income halve in 2018. This amounts to an average of €30.000, compared to €64.000 last year. 2017 was therefore a historically good year for these companies. According to WUR, this is mainly because extra animal feed had to be purchased as a result of the drought. This resulted in an additional cost of €20.000.
In addition, dairy yields decreased slightly. This is compensated by the higher milk production, but that does not dampen the lower milk price. Logically, farms on sandy soils have been hit harder by drought than farms on clay or in the peat meadow area.
Significant differences in arable farming
Arable farming is a chapter in itself. The situation there was already bad in 2017 and few would consider this a top year. For 2018, the average income is €38.000, compared to €40.000 last year. Due to the drought, there are major regional differences here, depending on the soil type and the possibility of irrigating. Those who were unable to irrigate, will end up with a negative balance.
In the northern and central clay area, WUR and Statistics Netherlands do expect a significant increase, to €80.000 per unpaid annual work unit. The starch potato growers see their income fall from €71.000 to €22.000. Although the more than doubled free onion prices and higher consumption potato prices are driving incomes up. Cereals suffered the least from the drought, at a slightly higher price. The low sugar price is also being felt.
Other sectors
Due to lower egg prices, laying hen farmers have also seen their income fall. That of broiler farmers remains stable. However, the costs of energy, feed and the disposal of manure did increase. The price of meat also increased slightly.
The greenhouse horticulture companies with greenhouse vegetables or ornamental horticulture continue to maintain a stable high income of €160.000. Open field vegetable growers saw their income drop slightly, as did fruit growers. Flower bulb growers also have less earnings this year, mainly due to low kilo yields of the bulbs.
On Tuesday afternoon, December 18, Linda de Bie of the WUR will National Economic Agricultural Congress provide an explanation of the figures of the income estimate.
Niels van der Boom
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