The average income in the arable sector has halved in the 2019 harvest year, according to new data from Wageningen Economic Research (WUR). This brings the income for this year to €37.000 per unpaid annual work unit.
In the arable farming sector, the average income in 2019 will be €37.000 per unpaid annual work unit. This is a large halving compared to 2018. According to WUR, this difference is not necessarily surprising, because 2018 was a special year. Due to the low production volume in the sector, prices were very high. Income is now back at the level of 2017, when the average income was €41.000.
Decrease in product prices
In addition, the difference is caused by a sharp drop in the prices of arable products in 2019, compared to last year. For example, the prices of ware potatoes (-38%), onions (-63%) and wheat (-17%) fell sharply in the past year. The WUR does write that these prices are based on the free market and not on contract cultivation. The only product that has increased in price is the price of sugar beet (+5%). This is a result of the lower sugar production in the world.
However, the starch potato growers took the biggest blow last year. They saw their average income fall to €13.000 per unpaid annual work unit. Although starch potato cultivation has increased in the past year, the starch content is lagging behind. The quality of the starch potato is also lower this year, as a result of which the price of the product has fallen: -9%. However, it remains to be seen what the performance price for starch potatoes will do. This uncertainty has an effect on the income of starch potato growers.
Increase in sector
Are we looking at the entire agricultural and horticultural sector, then the average income has increased last year by €6.000 to €57.000 per unpaid annual work unit. About 60% of agricultural and horticultural companies in the Netherlands earn between €83.000 and -€7.000.
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