European farmers to earn more as numbers fall: EU
(BRUSSELS) - With the number European farmers dwindling fast, those still on the land look set for a 1.8 percent annual hike in income over the coming decade, the EU said Tuesday.
"In 2023, real agricultural income per labour unit is projected at 46.8 percent above the 2003-07 average, which is an increase of 1.8 percent per year from 2013 to 2023," the European Commission noted in a report.
This trend was the result "of a continuous decrease" in the workforce employed in agriculture, more than offsetting an expected 15.1 percent drop in real income, it added.
The report said production of main crops was expected to remain high, largely thanks to growing global food demand, notably from China.
Milk and dairy products are expected to do well, with cheese production expected to absorb most of the extra milk delivered to dairies.
Meat, which reached its lowest per capital consumption in 11 years in 2013, is expected to recover in 2014 as growth recovers across Europe, with pork remaining Europe's favourite meat.
Farm Net Income
Of course, it's the agricultural subisidies that's distorting the market. Either they're being handed out to "producers" who actually produce nothing or they're distributed extremely unevenly (certainly between different countries, but also firms).
Subsidies won't last forever, so I also don't like how they make up a large proportion of the actual farm net income. Doesn't mean that the farms are inefficient, though. Most of them are in fact very well managed. Problems are mostly caused by other EU policies that are closely tied to agricultural production. In large part that means the energy policy, which has resulted in many inputs (electricity, fertilizers, pesticides etc.) reaching unreasonable prices.