News Income estimate WER & CBS
Once again large differences in agricultural incomes
For pig farmers, 2023 is a year to remember: never before has income been estimated as high as it is now. Sow farmers in particular benefited. Arable farmers and dairy farmers actually saw benefits decline. Although there are again large differences, just like last year, the average income in the Dutch agricultural sector remains virtually unchanged.
At €112.000 per unpaid unit of work years, agricultural income will decrease by €2.000 this year, according to figures from Wageningen Economic Research (WER) and CBS based on more than 40.000 agricultural companies. The income was €37.000 higher than the average over the period from 2018 to 2022. WER calculates the agricultural income per unpaid annual work unit (aje). These are the agricultural entrepreneurs and their family members. Usually no official salary is charged for them. WER uses the formula aje to compare the incomes of different business types.
Animal production fell by 0,7%. Although more milk and eggs were produced, less pork and poultry meat was produced. Vegetable production fell 3,3%, which is relatively strong according to Statistics Netherlands.
Pig and poultry farmers cash in
Pig farmers stand head and shoulders above the rest in the income list. They saw their income increase by as much as €245.000 to an average of €369.000. Sow farmers in particular cash in with an average income of €558.000. The profitability is on average €148 revenue per €100 costs. It should be noted that the years before this were poor. Due to the operation of the pig cycle, the benefits per year are very volatile. In addition to significantly higher piglet prices, feed prices fell, which means it cuts both ways.
High piglet prices were a cost item for fattening pig farmers, but higher pig prices compensated for this. The average income for this group increased by just €30.000 to €186.000. In itself a high amount, but considerably less than sow farmers.
The poultry industry also benefited from lower feed prices. In addition, egg prices rose, although according to the WUR there are major differences between the different farming systems. Laying hen farmers saw their income increase by more than €300.000 to approximately €348.000. The increase in broiler farming was less significant. However, that sector has been able to generate a high income for years. With a small increase of one hundred thousand, the average income rose to €XNUMX.
Fewer years for dairy farmers
2023 turned out to be less favorable for dairy farmers, although they too could benefit from lower concentrate costs. However, the other costs for lease and manure disposal increased sharply. In addition, the milk price fell sharply due to a wider global milk supply. From €122.000 in record year 2022, which was a top year, income fell to €78.000. The profitability is on average €100 revenue per €100 costs. However, last year earnings were still higher than the long-term average of €57.000.
Arable farmer sees income drop
Arable farmers also saw earnings drop, from €143.000 in 2022 to €110.000. The profitability is on average €107 revenue per €100 costs. As with dairy farmers, this is still better than the long-term average. The prices of arable crops fell slightly, while hectare balances also declined, WER indicates. The grain price also fell, after a strong rebound in 2022 during the start of the war in Ukraine.
The income of starch potato growers decreases to a similar extent as that of arable farmers to €114.000. Growers of field vegetables can look back on a better year and see their income increase by around €30.000 to €120.000.
Wouter Job
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