News CBS
Large differences in household income in the agricultural sector
The differences between the household income of different types of agricultural businesses are large. This is evident from figures for 2021 published by Statistics Netherlands. Income is on average highest at poultry farms. The income of households with an organic farm is almost 10% higher than that of conventional farms. The risk of poverty is low for every type of agricultural business and more than half in the agricultural sector belong to the 20% of Dutch households with the highest incomes.
The average household income of agricultural companies in 2021 was €82.000, while for a Dutch household it was €49.000. The average income of organic farms was higher, at €90.000. The disposable income of households with a poultry farm was the highest in 2021 at an average of €115.000. That of arable farmers with mainly fodder crops is the lowest (€68.000). Dairy farmers had an average household income of €77.000.
Statistics Netherlands defines disposable income as: gross income minus paid income transfers (such as alimony), income insurance premiums and health insurance and taxes on income and capital. This concerns the income of the entire household, including that from relationships outside the agricultural business. It says nothing about how much is earned per person or per hour worked. In 2021, 58.300 households were (co-)owners of 45.500 conventional agricultural businesses. 2.000 households were (co-)owners of a total of 1.600 organic farms.
More than half in the highest income group
Income is also very dependent on company size, with households with a larger company having more income. 54,7% of dairy farmers belong to the 20% of Dutch households with the highest household incomes. Among poultry companies this is even 73,6%. On average, 53% of the agricultural sector falls into the highest income group and for organic companies this is 59,8%.
Part below the low-income limit
There were also low-income agricultural households. In 2021, 5,3% of households with a dairy farm had an income below the low-income limit (€2021 in 13.500). Among households with a poultry farm, this was 3,8%. Among households with a pig farm, 12,4% had an income below the low-income limit. However, if we look at the last four years, it is not that bad. Of households with a dairy farm, 0,7% had an income below the low-income limit in at least the last four years and 0,3% of pig farms, according to CBS figures.
In December, CBS already published some of these figures showing the income of households and agricultural entrepreneurs was compared with that of other entrepreneurs. In 2021, that of households of agricultural entrepreneurs was more than €5.000 higher than that of entrepreneurs in general.
Linda van Eekeres
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