Brussels, 03/01/2011 (Agence Europe) - Real agricultural income per worker increased by 12.3% in the EU last year, following a 10.7% fall in 2009, according to initial estimates published by Eurostat (the European Union's statistical office) on 20 December. This increase is due to a 9.9% increase in real agricultural income, accompanied by a fall in agricultural labour costs (-2.2%). Between 2005 and 2010, real agricultural income in the EU 27 increased by 10.0% according to estimates, whilst agricultural labour costs fell by 12.7%.
The positive income development mainly results from increases in value of agricultural production. Price increases have been registered for milk as well as for most arable crops. The Commission explained that the 2010 increase brings average farm income almost back to the level of 2008 - although with huge differences between member states.
According to Eurostat, the increase in EU27 real agricultural income in 2010 is mainly the result of a rise in the value of agricultural output at producer prices in real terms (+4.3%), while input costs in real terms grew (+0.8%). The fall in the real value of subsidies net of taxes (-1.2%) and the slight rise in depreciation in real terms (+0.4%) have a marginal impact.
Real agricultural income per worker in 2010 is estimated to have risen in 21 member states and to have fallen in six. The highest rises are expected in Denmark (+54.8%), Estonia (+48.8%), Ireland (+39.1%), the Netherlands (+32.0%), France (+31.4%), Latvia (+25.5%), Belgium (+24.1%), Bulgaria (+23.0%) and Germany (+22.8%), and the largest falls in Romania and the United Kingdom (both -8.2%), Greece (-4.3%) and Italy (-3.3%). In 2010, the value of EU27 agricultural output at producer prices is estimated to have increased by 4.3%, mainly due to an increase in the value of both crop production (+6.3%) and animal production (+2.4%) in real terms. In crop production, the increase in value is almost entirely due to a rise in prices (+8.9%). The increase in the value of animal production in 2010 is the result of an increase in both producer prices (+2.0%) and volume (+0.4%). Prices rose for milk (+9.4%), sheep and goats (+7.0%) and cattle (+0.4%), while they are estimated to fall for pigs (-2.6%). The volume rose for milk production (+1.4%), remained at almost the same level for pigs (+0.1%) and slightly decreased for cattle (-0.8%).
The Copa-Cogeca organisation was delighted with the rise but said that “EU farm incomes are still at critical levels, being less than 50% of average earnings of other sectors. This increase will not be enough to offset the downward trend, with EU27 incomes still below the level seen in 2008. This overall figure of 12.3% also masks huge variations in income levels between member states. Furthermore, production costs continued to climb in 2010. We consequently expect Eurostat's second estimates for EU27 agricultural incomes, measured in real terms, to take into account the big increase in fertiliser prices experienced by farmers in recent months”. (L.C./transl.fl)