Farmers' Income in 2007: Uncertain Increase Hides Vast Disparities

According to the French National Institute for Statistics and Economic Studies (INSEE), net income for farmers in 2007 increased by an average of 12 percent over the 2006 figures. While grain growers seem to have plenty to celebrate these days, livestock farmers are feeling the full force of increasing grain prices (+60 percent for soft wheat).

Indeed, the first group saw a 98 percent increase in its income, although there is currently no guarantee that grain prices will remain at such high levels1 ; members of the second group, on the other hand, are suffering from more or less substantial income loss. Worst off among them are pig and poultry farmers, whose income has plummeted by 60 percent!

Since they rely on grain prices, livestock farmers have had to spend more to make up for the 15 percent increase in animal feed prices. Pig farmers have also had to bear the brunt of a 10 percent drop in the selling price of meat, as well as a nearly 13 percent decrease in exports compared to the previous year.

In light of these developments, the French Permanent Assembly of Chambers of Agriculture (APCA) recommends that "the allocation of agricultural assistance be revised to take into account market realities and a policy for managing the new risks linked to price volatility be implemented."

The WOAgri model developed by the World Organization for Agriculture will serve, precisely, to help resolve these issues by modeling real agricultural conditions, particularly price volatility, with the goal of becoming a decision assistance tool to aid national and international decision-makers.