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German farmer sees a sharp fall in income
The consequences of the corona pandemic and African swine fever are being felt in the wallets of agricultural entrepreneurs in Germany. They saw their income fall sharply in the 2020-2021 financial year and the debt burden rise. All sectors are affected.
The association of agricultural chambers (VLK) draws this conclusion after evaluating the accounting results of the full-time farmers. In the largest agricultural state of Lower Saxony, operating results fell by an average of about 33%. Farmers' incomes in this state have stagnated at an average of $48.300 this year. Last year it was €71.400, Agrarheute reports.
Pig farming hardest hit
Pig farmers in particular are being hit hard, now that the pig prices very low to be. They saw their income plummet by almost 80%. Average operating income was just €27.900, compared to €129.600 in the previous fiscal year. It should be noted, however, that the pig market performed exceptionally well at the time. Now the problems have piled up: lower sales due to the corona pandemic, a slaughter backlog and oversupply due to the closure of the slaughterhouses and export bans due to African swine fever.
The results in arable farming are less dramatic, but incomes there too are under pressure, despite the good wheat pricing and rapeseed. In Lower Saxony, arable farmers saw their income fall on average by 15% to €62.400. The high costs have made the greenhouse shrink. In addition, many arable farmers were unable to take advantage of the high grain prices because they were tied to futures contracts.
Due to the relatively low milk price, dairy farmers have seen their profit fall for the third year in a row. On average, they earned €2020 in 2021-53.000. This means that the average income in the dairy farming sector is 6% lower than in the previous financial year.
Situation unchanged for the time being
The income situation in the past financial year means that German farmers have seen their own capital fall significantly and that foreign capital has increased to an average of €366.000. According to the VLK, the current fiscal year 2021-2022 cannot yet turn the tide. This is mainly due to the drastic increase in costs of, among other things, machines, materials, fuel, fertilizer and crop protection.
The current situation surrounding corona and African swine fever is also leaving a mark on the agricultural markets, which hinders pig farming in particular. Arable farmers benefit from higher prices for wheat and rapeseed, among other things, although they also have to deal with significant cost increases. German dairy farmers benefit from a higher milk price and are expected to be able to operate reasonably profitable again this financial year.
Jeanette Pennings
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