News Income estimate
Major differences between farmers' incomes
In terms of income, the agricultural sector has performed differently this year. The earnings of pig farmers are head and shoulders above the rest and run into the hundreds of thousands of euros. Arable farmers and poultry farmers, however, look back on a less good year and saw their incomes halve.
Wageningen Economic Research estimates the average income of a farmer at €57.000 per unpaid annual work unit. That is an increase of €6.000 compared to 2018. The extremes between the various sectors are, as usual, extremely large again this year.
Pig farmer cashes
A pig farmer earned an average of no less than €257.000. This is mainly due to the outbreak of African swine fever in China. As a result, the export of European pork exploded and the pig price took off. However, the exorbitant profit deserves a caveat. Due to the cyclical effect on the pig market, earnings have large peaks and troughs. In 2018, a sow farmer still had to add money. For a realistic picture, the earnings must therefore be viewed over a longer period.
The income of dairy farmers is much more stable. However, this year there has been a decrease: -€6.000 to €31.000. This is below the long-term average. The decrease is partly due to the lower milk price, although this can partly be compensated by the higher production per cow. Another reason is the lower calf prices. However, the main reason is the higher costs for feed, buildings and machines.
Poultry farmer and arable farmer's income plummets
Poultry farmers saw their earnings plummet in 2018. The income of laying hen companies fell by an average of 40% to €45.000. This is due to a lower egg price in the first half of this year. In addition, a broiler farmer saw the earnings halve to €60.000, the lowest level since 2013. At the same time, this is still almost double what a dairy farmer does.
Earnings in the arable farming sector are also in free fall. The dry summer caused the prices of free crops to rise, causing income to peak. For harvest year 2019, however, the income will again halve to an average of € 37.000. The prices of onions, ware potatoes and wheat are under some pressure, according to WUR. As a result, incomes are also under pressure.
Stable income in glasshouse cultivation
In the glasshouse and horticultural sector, the average income rose slightly to €200.000. The differences between the companies are large, the WUR notes. Greenhouse vegetable and cut flower companies see their income rise to €290.000 and €170.000 respectively. Growers of pot and bedding plants, on the other hand, see the income drop to 130.000.
Wouter Job
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