Using the first estimates of the economic accounts for agriculture (ECA) transmitted by EU Member States, EUROSTAT has published data on the evolution of agricultural income in the EU in 2017 compared to 2016.
For the whole of the European Union (EU28), the selected farm income indicator increased by 8.5% compared to 2016, including the divergences of Member States. Meanwhile, in Luxembourg, the Rural Economy Service (SER) was responsible for drawing up the economic accounts based on aggregated data from the agricultural sector. The agricultural accounting information network of the Rural Economy Service is another source economic information in agriculture. The network is based on the accounting data of a sample of farms and is used to calculate many economic indicators whose farm income.
The general level of producer prices for agricultural products in 2017 was found to have improved significantly from the very low levels from the years 2015 and 2016. Milk was the main item with an increase in the producer price, with field crops and potatoes having experienced a decline in producer prices. The dominant position of milk production in agriculture in Luxembourg means that, overall, at the level of the agricultural sector, income significantly increased compared to the previous two years.
Nevertheless, the value of crop production has decreased due to lower prices, whilst grain and oilseed crop is around the multi-year average. However, dry conditions in the first half of the year resulted in high variability according to region.
Cereal and oilseed prices declined slightly compared to the already low level of 2016 and fodder production is below the multi-year average for meadows and pastures and above the multi-year average for corn silage. Moreover, whilst the forage harvest is of good quality and the production of animals has increased in value as a result of a price increase for cattle and pigs, Luxembourg wine production remains at a relatively low level.
However, the farm income indicator A, which represents the index of real factor income in agriculture per unit of work has increased by 27% in 2017 compared to 2016.