Farmer's income under heavy pressure

Very little will be left of the arable farmer's income if the intended policy is implemented in full. Of an average annual income of €46.333 for the arable farmer, only €6.493 remains, according to calculations by BO Akkerbouw.

The planned buffer strips of 3 meters, the mandatory rest crops and a lower CAP premium lead to an income of only €6.493 according to calculations by the trade association. That income is based on an average farm of 75 hectares and the average annual income of an arable farmer according to Agrimatie. In addition to the new policy changes, there are also sky-high energy prices and increasing employer charges that will impact income in the coming season.

The calculation shows that the sowing of buffer strips of 3 meters can lead to a loss of yield of €16.500 per year, assuming a maximum of 4% of production area. The exact effects of this depend on region, construction plan and company size.

€18.750 less due to expansion of construction plan
The expansion of the cultivation plan also has a major impact on the income of the arable farmer. In particular, the obligation of 1:4 rest crops in sandy and loess soils has considerable consequences. The loss of yield with a wider rotation can amount to €18.750 per year for the individual arable farmer. This also depends on the region, construction plan and company size. According to BO Akkerbouw, this policy also has significant consequences for processing companies

 Less CAP premium
The third policy proposal that has consequences for the income for arable farming is the implementation of the new Common Agricultural Policy (CAP). The new eco-scheme is expected to lead to a reduction in the CAP premium of an average of €4.590 per arable farm. This has everything to do with the fact that "the bronze level seems to be the maximum attainable for arable farms", explains BO Akkerbouw. Silver and gold are hardly feasible due to a lack of available measures. According to the new CAP, bronze will yield €60 per hectare and silver and gold will yield an additional €100 and €200 per hectare respectively.

Manure placement space in jeopardy
However, the buffer strips go further than just for arable farmers and also apply to dairy farmers. In fact, due to the new rules in the manure policy, farmers who do not participate in the CAP also have to build buffer strips. This affects the fertilizer placement space. Finally, the buffer strips are also fertiliser-free strips. Wageningen Economic Research (WEcR) has calculated that the buffer strips in the Netherlands will cost approximately 62.500 hectares and can therefore not be used for fertilization. Assuming that 1 cubic meter of animal manure contains 4 kilograms of nitrogen, then there is room for 170 kilograms per hectare. This amounts to 2,6 million cubic meters less fertilizer placement space.

Jesse Torringa

Jesse is an editor at Boerenbusiness and focuses in particular on the arable farming sector, including grain and onions. He also closely follows the fertilizer market. In addition, Jesse works on an arable farm in Groningen with seed potatoes as the main branch.

j.torringa@boerenbusiness. Nl

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