News Income estimate 2021
Pig sector income is less negative
An average pig farmer had a negative income of €8.000 last year. This is shown in the updated income estimate of Wageningen Economic Research. A version of the estimate was already published in December, but then there was talk of a negative income of €49.000. The difference is mainly in the corona support that had not yet been processed.
Normally an income estimate is only published in December, but this time the data had not yet come in from 1.500 companies on which the estimate is based. At that time, no income estimates could be published for smaller sectors. The data has now all been received and it has been decided to provide an update for the sectors for which an income estimate was already published in December. This year, the researchers hope to have all the data back by the end of the year.
The estimated farm income for pig farmers - averaging €8.000 negative per unpaid annual work unit (ie, per worker who works 2.000 hours or more in a year) - is €1.000 lower than in 2020. This is an increase of over €35.000 compared to 2020 and more than €18.000 above the multi-year average from 2016 to 2020.
The income of an average sow farm fell last year by €114.000 to a negative result of €75.000. The income on the closed pig farms is €47.000 minus, a decrease of €9.000. Only the fattening pig farms achieve a positive income of €73.000 per unpaid aje. This is because the prices of purchased piglets fell more sharply than the sales proceeds from finishing pigs.
Dairy farmers' income lower
The average income of dairy farmers is estimated at approximately €32.000. This is €6.000 more than in 2020, but €9.000 lower than the average for the period from 2016 to 2020. In December, the dairy farmers' annual income was estimated higher, at €35.000. Lead researcher Harold van der Meulen explains that the data for the estimate will already be collected in mid-November. "Now you see it come out a few thousand euros lower. The milk price has in fact still risen sharply, but we had estimated it to be slightly higher."
The average income of organic dairy farms for 2021 is estimated at €36.000, almost the same as in 2020, but €5.000 lower than the average for 2016 to 2020. The higher feed, energy and fixed costs are compensated by higher milk and livestock prices . The average organic milk price has increased by 4,5% compared to last year, despite a larger supply of organic milk.
Higher annual income for arable farmers
Arable farmers see their income from business rise due to higher average crop prices. Estimated income for the 2021 harvest comes in at nearly $66.000 in the updated estimate, an increase of $35.000 from 2020 and more than $18.000 above the multi-year average from 2016 to 2020.
The figures released in December spoke of an average annual income of €58.000. This is because the income estimate for 2021 relates to the 2021 harvest, says Van der Meulen. "It will just start in November and will continue until April, May this year. The war in Ukraine will also play a role this year. The updated estimate was drawn up at the beginning of March and we were able to write a larger plus. higher, grain prices have risen."
Only for onion price drop
Only onions are expected to fall in prices by almost 2020% compared to 30. "This is due to the high production, as a result of acreage expansion after good prices in 2020 and the higher yield per hectare," says Wageningen Economic Research. For ware potatoes harvested in 2021, the price formation is a lot better (+65%) than that of the 2019 and 2020 harvest. This applies especially to French fries potatoes. "Due to corona, the sale of chips from the potato harvests of 2019 and 2020 to the catering industry was low and the export opportunities were limited. As a result, the price for free potatoes went down."
Income on starch potato companies is increasing slightly. Both costs and depreciation paid and the revenues for the 2021 harvest year are estimated to be higher than the year before. Starch potatoes are expected to yield 5% more than last year. A small increase in income is foreseen to €35.000, several thousand euros more than last year, but still €11.000 below the multi-year average from 2016 to 2020.
Price increase of 30% for wheat crop 2021
A higher price was achieved for sugar beet for the 2021 harvest (+11%). This is partly due to the sharp rise in the world market price for sugar. "Due to lower wheat production in some large wheat-producing countries, the global supply in 2021 was smaller than a year earlier. This leads to significantly higher wheat prices worldwide and therefore also in the Netherlands. Due to the outbreak of the war in Ukraine, grain prices rose in March. Ukraine and Russia are major players in the global grain market. Wheat prices are projected to increase by 2021% for harvest year 30," the researchers said.
Linda van Eekeres
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