20 December 2011
First estimates for 2011
EU27 real agricultural income per worker up by 6.7%
EU27 real agricultural income per worker1 has increased by 6.7% in 2011, after an increase of 12.6% in 2010, according to first estimates2 issued by Eurostat, the statistical office of the European Union. This increase results from a rise in real agricultural income (+3.9%), together with a fall in agricultural labour input (-2.7%). These estimates for the EU27 are based on data supplied by the national authorities in the Member States.
Between 2005 and 2011, EU27 real agricultural income per worker is estimated to have increased by 18.3%, while agricultural labour input has fallen by 15.2%.
The increase in EU27 real agricultural income in 2011 is mainly the result of a rise in the value of agricultural output at producer prices in real terms (+7.5%), while input costs in real terms grew (+9.7%). The falls in the real value of subsidies net of taxes (-1.2%) and in depreciation in real terms (-0.1%) have a marginal impact.
Real agricultural income per worker in 2011 is estimated to have risen in 19 Member States and to have fallen in eight. The highest rises are expected in Romania (+43.7%), Hungary (+41.8%), Ireland (+30.1%), Slovakia (+25.3%), Luxembourg (+25.2%), the Czech Republic (+23.5%), Bulgaria (+23.2%) and Denmark (+20.2%), and the largest falls in Belgium (-22.5%), Malta (-21.2%), Portugal (-10.7%) and Finland (-9.6%).
Change in real agricultural income per worker1 in 2011
% change 2011/2010
Indices in 2011 (2005=100)
% change 2011/2010
Indices in 2011 (2005=100)
: Data not available
In 2011, the value of EU27 agricultural output at producer prices is estimated to have increased by 7.5%, mainly due to an increase in the value of both crop production (+8.0%) and animal production (+7.8%) in real terms.
In crop production, the increase in value is due to both a rise in prices (+5.4%) and in volume (+2.5%). Prices are rising for most groups of crops, except fresh vegetables (-10.1%), plants and flowers (-1.1%) and olive oil (-0.9%). The sharpest increases are recorded for cereals (+18.9%), oil seeds (+18.4%), sugar beet (+3.6%) and wine (+2.3%). The volumes of most products are rising, in particular sugar beet (+13.7%), wine (+4.6%) potatoes (+4.2%) and fruits (+3.3%). A decline in volume is seen only for olive oil and plants and flowers (both -2.2%).
The increase in the value of animal production in 2011 is the result of a rise in both producer prices (+6.7%) and volume (+1.1%). Prices are rising for milk (+9.1%), poultry (+8.7%), cattle (+8.6%), sheep and goats (+6.4%) and pigs (+4.3%), while they are falling for eggs (-5.3%). The volume is increasing for sheep and goats (+2.3%), poultry (+1.9%), cattle (+1.5%) and milk production (+1.1%), and slightly decreasing for eggs (-0.9%).
EU27 agricultural input costs (intermediate consumption) are expected to rise by 9.7% in real terms, mainly due to an increase in prices (+9.1%). The rise in input prices is driven by increases for feeding stuff (+16.8%), fertilisers and soil improvers (+14.6%), energy and lubricants (+11.8%), seeds and planting stocks (+4.3%) and maintenance of buildings (+3.8%).
Agricultural income comprises the income generated by agricultural activities (as well as inseparable non-agricultural, secondary activities) over a given accounting period, even though in certain cases the corresponding revenues will not be received until a later date. It does not, therefore, constitute the income effectively received in the course of the accounting period itself. Moreover, it must not be confused with the total income of farming households as it does not comprise income from other sources (non-agricultural activities, salaries, social benefits, income from property).
The present estimates have been compiled by the national authorities in the Member States of the European Union in accordance with the methodology of the Economic Accounts for Agriculture (which is close to the methodology of the national accounts, ESA95, but incorporates a number of changes to take account of the special features of the agricultural economy).
The real income of factors in agriculture, per annual work unit, corresponds to the real net value added at factor cost of agriculture, per total annual work unit. Net value added at factor cost is calculated by subtracting from the value of agricultural output at basic prices the value of intermediate consumption, the consumption of fixed capital and production taxes, and adding the value of production subsidies.
All value and price data in this New Release are presented in real terms, i.e. adjusted using the implicit deflators in Gross Domestic Product (GDP). The deflators for 2011 are provisional.
In order to take account of part-time and seasonal work, agricultural labour or changes therein are measured in annual work units (AWUs). In this News Release one AWU is defined as the work-time equivalent of a full-time worker.
These data, based on first estimates provided by the Member States, Norway, Switzerland and Croatia are provisional. In February/March 2012, Eurostat will publish a revised second set of estimates.
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Ruben GARCIA NUEVO
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