Average farmer income was $39,700 in 2013 in France, a decrease from 16.4% compared to that in 2012. Farm income is estimated using the Earning before Interests and Tax per worker. The main cause is the continuous increase of farm inputs costs (animal feed, fertilizers, pesticides), whereas the value of agricultural production is stagnating (only 0.1% higher).

Moreover, prices have dropped when it comes to oil seeds (-15.4%), cereals (-13.7) and sugar beets (-2.9%), which are major crops in France. On a long term scale, farm income has increased by 29.2% in the EU between 2005 and 2013.

The income of crop farmers is particularly affected by price volatility

Crop farmers are particularly struck by this high volatility of agricultural prices. Their income was 49.3% lower in 2013 than in 2012.The income surge due to the grain prices between 2008 and 2012 has now disappeared.

Earnings before Profit and Interests per worker in the farm sector

Earnings before Profit and Interests per worker in the farm sector

Earnings before Profit and Interests per worker in the farm sector

Stock farmers also encounter difficulties

The situation is not a lot better for stock farmers. Apart from dairy farmers, who earned about 1.3% more in 2013, reaching $32,500, their income is also lower this year. Despite the decrease in grain and soy prices, the cost of animal feed is still burdensome for their revenue. This decrease in farm income led to an unexpected phenomenon: average farm income is now back to its year 2000 level . But this mean hides huge differences. Moreover, the hierarchy of farm income between the different types of production has been redefined. Surprisingly, the production that offers the best income after winemaking is pork breeding ($55,500), far more than grain or dairy farmers. One of the reasons is that the pork branch has undergone huge restructuring: 63% of pork farms disappeared between 2000 and 2010. The global pork production has also decreased, but not in the same proportions. At the same time, poultry producers earned an average of $28,000. Retour ligne automatique
Only wine producers and orchardists saw a significant improvement in their income (+33% and +7.2%).

Income gaps are growing for all branches

Statisticians are observing an interesting trend. On one hand, average incomes of each branch are getting closer. On the other hand, income disparity among all branches is increasing. All types of production considered, the gap between the highest and the lowest incomes is widening. This trend could be due to an increasing gap between the highest and lowest incomes in the single crop farming branch, where farmers with poor land are struggling to make a significant income.

©Min.Agri.Fr

©Min.Agri.Fr