Wednesday, December 14, 2016

The farm income would have fallen by 16 % in 2016 – The Echoes

2016 will remain a black year for the farmers. The net farm income by assets is expected to post a decline of 15.9 %, according to the calculations by Insee. Milk crisis, a crisis of the meat, the wheat harvest is catastrophic in France… all the conditions are there to explain both the fall in production and lower prices. For cereal crops, the Insee estimates that the decline in total production has been 24 %. The grain French had a double punishment. Not only crops have been wasted by the weather, but in addition their production will be much less valued because everywhere there is a plethora of grain in the world and the prices are very low.

the Less affected, the vines have seen their production decline of 9 %. Applications chinese and american have argued the price of the wine. The producers of beets, potatoes, and fresh fruits and vegetables, by contrast, benefited from improved prices, according to the estimates of Insee. Fruits and vegetables have surfed on strong demand. The harvest of apricots and cherries was very modest.

Side animal production, the drop in volumes (-7 %) comes mainly from the milk. But, whether it is beef or milk, the price tumbled. And these two sectors are the worst off in the beam animal. Faced with a crisis of overproduction in the world, the breeders have decelerated sharply in playing both on the food rations of the cows or leading them to the slaughterhouse.

Only positive point in this table is very dark, the decrease in operating expenses. They have declined for the third consecutive year, underlines the Insee. the ” However, this decline does not offset the value of production. Therefore, the value added of the agricultural industry is declining sharply. “ as a logical Consequence, agricultural employment also declined in 2016, continuing a trend heavy.

In total, the price of intermediate consumption fell by 2.3 %. This is the third year of consecutive decrease. Purchases of feed for livestock are in strong decline, with a fall of 7.5 %. The veterinary expenses, they have continued to increase, driven by the prices (+3.1 percent). If the fuel has very strongly declined (-17,2 %), however electricity has further increased (+3.1 per cent). Expenditures for fertilizers were down 5.5 %. In 2015, the Insee announced a 8% increase in the agricultural income that had led to the misunderstanding and the anger of the agricultural organisations.

Marie-Josée Cougard, Les Echos


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