The French national agriculture audit committee has just issued provisional figures on income for farmers in 2010. With a clear improvement on 2009, which was a very bad year1, specialised grain and oil and protein seed crop producers have now returned to an average income level2 in line with their capital investments as well as the skills and expertise they provide and the risks they have to contend with.
There is a striking difference between the situation at the end of 2010 as seen with this increase and the position of the sector last Spring when 1 500 tractors drove through Paris in protest at a time when prospects for 2010 seemed to be for even worse results than the previous year. Two unforeseen developments occurred with markets taking off after the disastrous drop in crop levels in the Black Sea region and, to a lesser extent, the decline in the euro-dollar exchange rate; both had a positive effect on the trade and financial balance.
All of this highlights the increasingly unpredictable nature of arable crop farming. It is absolutely essential for this to be given consideration in the CAP reform for the period from 2014 to 2020, both for market regulation with changes to aid and by ensuring that farmers can average out their incomes to offset the impact of peaks and troughs.
Contact: Pascal HURBAULT, (+33/0)1 44 31 16 25 / (+33/0)6 72 42 06 36
1. Average gross income (before tax and deductions for social charges paid by the farmer): 13 200 euros.
2. Average gross income (before tax and deductions for social charges paid by the farmer): 36 600 euros.