News Energy
Flemish farmer sees energy costs falling
The direct costs for Flemish agricultural entrepreneurs in the first months of 2020 are slightly lower than in 2019 (-0,50%), according to the estimate of the annual results of Boerenbond. The slight decrease is mainly due to lower energy costs. On the other hand, in 2020 the costs for seeds and plant protection products increased.
Energy costs account for 8% of the total direct costs of the Flemish farmer and show a downward trend in the first 8 months of the year. For example, the prices of diesel and heating oil fell by 26% and the costs for electricity have fallen by 8% this year. The total energy costs in Flanders thus amount to approximately €350 million, where that was just over €400 million last year. It is striking that agricultural entrepreneurs are increasingly investing in their own energy production, for example by installing solar panels.
Most money for animal feed
In the first period of the year, Flemish farmers spent most of their expenditure on animal feed. This concerns 50% of the total direct costs. In contrast, the costs for animal feed in the first 7 months of the year are 0,9% lower than in the same period in 2019. This while the number of kilograms purchased has increased by 1,7% compared to last year; over the past few months, 1,1% more cattle feed was purchased and 6% more poultry feed. The share of pig feed remained stable.
The costs of fertilizers have also decreased in the past period: -5,3% compared to last year. This is mainly due to price decreases of ammonium nitrate and liquid nitrogen. The quantity of fertilizers purchased has also decreased, mainly as a result of the dry spring and stricter fertilizer legislation.
Higher costs for sowing and seed potatoes
The purchases of seeds and seed potatoes in 2020, just like the energy costs, represent 8% of the total direct costs at Flemish farmers. In total, this concerns an amount of approximately €375 million. The purchase of this has increased at least (+2%), partly due to the increase in the acreage of maize and industrial vegetables and due to the catch crop scheme in Belgium. Globally, the costs for seed and seed potatoes rose by 2020% over the first months of 2.
Spending on plant protection products is also higher (+2%). The purchase of plant protection products accounts for 4% of the total direct costs at a Flemish farmer. Boerenbond has established that fewer and fewer crop protection products are permitted, but that the alternative products are more expensive. This explains that this cost item will also be higher in the coming months.
Kimberly Baker
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