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Considerable drop in agricultural and horticultural incomes after peak year 2017

18/12/2018

The average farm income for agricultural and horticultural holdings in 2018 is estimated at 42,000 euros per unpaid Agricultural Working Unit (AWU). This is a decrease of almost 30,000 euros compared with 2017, which was historically a peak year. The decrease can be seen in nearly all types of farming: an income increase in 2018 was only seen for the tree nursery sector, due to a continued recovery of the demand for and the price of tree nursery products.
Pig farmers are confronted with considerably lower prices of piglets and fattening pigs due to a lack of demand for piglets and an increased supply of pork in the EU. Consequently, some incomes on sow farms were driven into the red. This year, dairy farmers' incomes were more than halved due to higher cattle feed costs in particular as a result of the drought and, in addition, lower dairy revenues. For harvest year 2018, incomes from arable farming are estimated to be similar to last year. As a result of the drought and differences in irrigation options, there are large regional differences in crop yields and incomes between farms. In greenhouse horticulture, incomes in both greenhouse horticulture and ornamental horticulture decreased due to a stronger increase in costs, especially for energy, than in revenues. A marked exception is found among cucumber growers, who saw their incomes increase due to a recovery of cucumber prices. Each year there are large income differences in agriculture and horticulture, both within and between the various types of farming. The dry and hot summer of 2018 will lead to larger income differences between individual entrepreneurs than usual.

Additional information for this item
Possibly there was an update of the information concerning one or more of the analyses below, where the current contents are shown. The older analysis which accompanied the news item can be viewed from the current analysis by accessing the archive that is shown there at the bottom of the page.

Farm income
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Revenues
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Pot and bedding plant cultivation: Substantial decrease in turnover of bedding plants
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Cut flower cultivation: Again higher turnover for cut flowers
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Costs
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Arable farming: Slight increase in costs
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Pot and bedding plant cultivation: Higher total costs except for energy
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Cut flower cultivation: Strong decrease of energy costs
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Structure in FADN
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Pot and bedding plant cultivation: Increase in number of farms and area
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Gross margin
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Profitability
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Production circumstances
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Pot and bedding plant cultivation: Dealing with summer climate is crucial
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Cash position
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Results per m2 glass
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Protected vegetable cultivation: Increased revenues per square metre
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Greenhouse horticulture: Minimal increase in farm income per m2

Result
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Industry data export
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Contact
Harold van der Meulen
+31317-484436
 

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