News Income estimate
Not everyone benefits from higher agricultural incomes
Incomes in the agricultural and horticultural sector have increased on average, according to the provisional income estimate by Wageningen Economic Research (WUR). The increase applies to dairy farming, among other things. Arable farming and the pig sector appear to be exceptions, although there is an increase based on the multi-year average.
Agricultural and horticultural companies have generated an average of €109.000 per unpaid annual labour unit (aje), according to the estimate. That result is €20.000 above the average income between 2019 and 2023. However, the differences between types of companies are large. While 20% of companies are in the red, the 20% of best performing companies have an income of more than €131.000.
Dairy farming sees income rise
The average income of dairy farmers is estimated by the WUR at €2024 in 74.000. This is an increase of €9.000 compared to last year and €11.000 more than the average between 2019 and 2023. This is the result of both the higher demand for dairy products and a lower milk supply. According to the WUR, the average received milk price in 2024 will increase by 8,5%. In addition, the higher slaughter prices of cattle and calves also helped the dairy farmer to a higher income. At the same time, costs also increased, mainly due to manure disposal. The average manure disposal costs increased to an average of 14.000 euros in 2024. This is an increase of 68%.
In the organic dairy sector, however, the story is a lot less positive. In that segment, the average income in 2023 was €33.000 per unpaid aje. That is a decrease of €16.000 compared to 2023. Income also decreased by €14.000 compared to the period of 2019 and 2023. The increase in the organic milk price was 2024% in 1. According to the WUR, that was insufficient to compensate for the increased costs of interest, buildings, machines and tools.
Arable farmers in the red
According to the WUR, the income of arable farmers is decreasing. However, the lower prices are somewhat compensated by higher yields. The average income decreased by 20% to €90.000 per unpaid aje, a decrease of €23.000 compared to the previous year. Compared to the average income in the period from 2019 to 2023, the income increased by €6.000 per unpaid aje. The main reason for the decrease is a decrease in prices, while costs are increasing. With the exception of energy and fertilizers, all costs increased, according to the WUR.
For example, the price of onions in 2024 was the lowest in two years, as a result of a higher supply. The area increased by 10% to 33.000 hectares. On top of that, there is also an increase in the yield per hectare. In the meantime, the potato supply that is traded on a contract basis is good according to the WUR and there is also more supply abroad due to a good global harvest.
The price of sugar beets dropped significantly. World market prices were on the decline in 2024, which is why Cosun Beet Company expects significantly lower prices than last year. Grain prices have since stabilized and returned to pre-war levels in Ukraine.
Finally, the WUR has a separate estimate for the relatively small starch potato sector. The average income for starch potato companies in 2024 was €78.000 per unpaid aje. That is a decrease of €25.000 compared to last year. This means that the income is equal to the WUR multi-year average.
Pig farms see sharp drop in income
Incomes in the pig farming sector were significantly lower this year than in 2023. This year, the average income will be €210.000, compared to €405.000 last year. According to the WUR, however, incomes are still above the average level of the years 2019 to 2023. That average was €167.000 per unpaid aje. The lower income is the result of an average decrease in pig prices of 9% and piglet prices of 12%. As a result, yields fell by an average of 17% and this was not sufficiently compensated by feed prices to achieve a stable income. In addition, high prices for manure sales put pressure on incomes.
Incomes of sow farms fell this year by an average of €315.000 to €230.000 per unpaid aje, a decrease of 57,8%. The decrease in income on mixed farms is slightly lower in relative terms. The income of this type of farm decreased by 54,2%. Meanwhile, pig farmers see the income decrease the least in relative terms, but in absolute figures the income is still the lowest. In total, the average income increased by 21,4% to €184.000. In absolute figures, this amounts to a decrease of €50.000 per unpaid aje.
Matthew Bremer
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