Agricultural income is an important indicator as it gives information on the viability of the agricultural sector and is properly taken into account into discussions on policy perspectives.
While the medium term changes in the price and volume components of the arable crops and major livestock sectors have been established in line with the market projections, in the remaining agricultural sectors – such as fruit, vegetables, wine and olive oil – it was assumed that income would follow a development related to its historical trend.
Compared to a five year average of the period 2008-2012, the EU-27 agricultural income per annual working unit in real terms would be 17.5% higher in 2022 compared to the base period.
This positive trend is the result of an expected sharp deterioration of the factor income in real terms at sector level (-15.6%), which is more than compensated by a reduction in the workforce employed in agriculture (-28.4%).
Against the background of an overall positive trend in real agricultural income per worker, marked differences appear between the EU-15 and EU-N12 aggregates:
- In the EU-15, agricultural income in 2022 is expected to be roughly unchanged (+0.1%) compared the base period.
- On the other hand, in the EU-N12, agricultural income continues to display a positive trend, almost 55% higher than the reference period by 2022, thus slightly converging towards the EU average.
For more details see:
- "Agricultural and Farm Economics Briefs" n° 3: "EU agricultural income 2014 – first estimates" (12/2014)
- Chapter 5 (pp. 14-49) of the report "Prospects for agricultural markets and income in the EU 2014-2024" (12/2014)
- "Situation and prospects for EU agriculture and rural areas", published as Annex I of the Impact Assessment prepared in the context of the current CAP reform process (10/2011)