A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Farmers’ Income Declined in 2008 in Spite of Soaring Prices

06 April 2009

A recent study conducted by Eurostat––the European Community statistical arm––indicates that real agricultural income per worker in Europe fell by 3.5 percent in 20081, following an increase of 9.3 percent in 2007.

The April 2, 2009 Eurostat news release indicates that the slump in real agricultural income for the 27 members of the European Union is due to two factors:

    • A steep increase in the value of production input costs in real terms (plus 10.3 percent), due to soaring fertilizer prices (plus 42.8 percent), increased energy costs (plus 12.2 percent) and animal feed (plus 9.7 percent);
    • An Increase in depreciation in real terms (plus 2.5 percent).
If these average figures conceal very contrasting situations by countries, they highlight the fact that, contrary to public opinion, farmers did not experience any astronomical increase in their revenues following agricultural commodity soaring prices on international markets. Indeed, the latest Eurostat figures are showing that farmers’ income results from aggregates that are far more complex than the mere market sale price. This leads to a worrisome state of affairs: If revenues generated by agricultural production decline when prices are exceptionally high, what will happen when prices are down?

1 According to the Eurostat news release, agricultural income includes income generated by agricultural activities in a given period, even though in certain cases revenues are received at a later date. Consequently, it does not correspond to the income effectively received during the period. In addition, agricultural revenues must not be confused with the total income of farming households that also includes income from other sources (non-agricultural activities, salaries, social benefits, income from property).
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Paris, 26 April 2019