For the Dutch agricultural sector, 2009 was a bad year economically. Production increased slightly, but most primary agriculture market prices fell. The average agricultural income decreased to 5,500 euros per farm, its lowest point in twenty years. The average price of land has risen from 29,000 euros per hectare in 2006 to 47,000 euros per hectare. Particularly in 2009, it was hard to see a relationship between land price and operating results. The long-term developments also showed a much sharper increase in land prices than in the added value of land-based agriculture. These are some of the results from the Agricultural Economic Report 2010 of the Netherlands, which was presented by LEI, part of Wageningen UR, this June.
The net environmental costs in the agricultural sector amounted to around 6% of the gross production value in the period 2003-2007. In a time when the costs of both environmental protection and matters such as animal welfare will probably increase further, the agricultural sector ought to be earning more rather than less by complying with these requirements, which usually demand investments and changes in farming practices on the part of the farmer. Research shows that only 34% of pig farms are currently in a position to invest in environmental protection and animal welfare so as to comply with future legislation in these areas. This was cause for ambitions to be re-adjusted. The planned further liberalisation of the agricultural markets and EU agricultural policy may also mean that many farms will be facing harder times ahead. There is a silver lining to be found in the expectation that food prices will increase. However, whether or not this will be to farmers’ advantage will depend to a great extent on the developments in important cost items such as energy and animal feed.
Report 2010-054 Agricultural Economic Report 2010 of the Netherlands: Summary