Optimism Dutch farmer plummets

The confidence of Dutch farmers in their business fell sharply in the second quarter of 2019. This is evident from the Agro Confidence Index of Wageningen University & Research (WUR). The Index is at its lowest level in 3 years.

De Confidence Index fell by 5 points to 10 points in the past quarter. The last such sharp drop occurred in early 2016. Pig farmers, open field horticulturists and dairy farmers in particular are more negative than 1 quarter earlier. In contrast, greenhouse growers were slightly more optimistic.

This index determines the mood of entrepreneurs in the agricultural and horticultural sector 4 times a year. In the survey, farmers are asked about the current situation on their farm and the expected economic situation for the next 2 to 3 years.

Less optimism in arable farming
Arable farmers in particular are less positive about the current situation than they were in the past first quarter of 2019. The index fell 12 points here, which can be explained in part by the dry summer and disappointing yields. Among the open field horticulturists and dairy farmers the index fell by 8 points and among pig farmers the decrease was 5 points.

Farmers and horticulturists are more divided when it comes to their expectations for the future. The index fell 6 points and is therefore just above 2 points. The index is thus close to zero. This indicates that just as many entrepreneurs are positive about their business operations in 2 to 3 years' time as negative.

Decrease in pig farming is noticeable
It is striking that the mood is much more negative, especially among pig farmers. In the first quarter of the year, they were still strongly positive about their medium-term situation. In addition, the current pig prices good. The index also fell in dairy farming. Arable farmers, on the other hand, are more positive about the coming years than they were 1 quarter ago.

Jeanette Pennings

Jeannet has her roots in the flower bulb sector and she grew up on an agricultural company in the northern part of North Holland. As a generalist she reports for Boerenbusiness across all sectors. She is also exploring the possibilities of sponsored advertising.

j.pennings@boerenbusiness. Nl

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