The decline in farm income was in line with forecasts. No unexpected changes were seen in the markets and in agricultural subsidy policy during 2006.
Farm income indicates the compensation received by agricultural entrepreneurs for their labour input and capital invested. It is calculated by subtracting total costs from total returns.
Costs continued to rise
Farm income for 2006 declined as total costs rose by nearly four percent and the growth in total return remained below one percent. Costs rose particularly due to the continued rise in production input prices fuelled by rising oil prices. The main factors contributing to an increase in total returns were an increase of over four percent in horticulture returns and a subsidy increase of some two percent over the previous year.
The total returns of agriculture and horticulture last year rose above EUR four billion for the first time during Finnish EU membership. Market returns of agriculture and horticulture totalled some EUR 2.1 billion and subsidies reached nearly EUR 1.9 billion. Total costs rose to over EUR 3.1 billion.
Prices of cereals and oil crops on the rise
Returns of animal farms in 2006 remained at levels seen in the previous year as the increase of returns from beef offset the slightly lower returns from milk and poultry. Returns from beef rose by nearly seven percent as the result of favourable price development. Despite a three percent increase, the producer price for beef remained clearly below the EU average.
The increase in producer prices and accelerated trade in barley increased market returns from cereals by approximately four percent, although the total yield was clearly smaller than in the previous year. However, the price paid for cereals in 2006 was on average nine percent higher than in the previous year. Returns from oil crops rose a staggering 42 percent, as the amount of goods in the market saw an increase of nearly 20 percent and producer prices rose by about 18 percent.
Clear increase in value of greenhouse production
The value of horticultural production rose by over four percent from the previous year. The value of open-field production witnessed a slight decline, whereas returns from greenhouse production grew by over seven percent. Due to the dry growth season in 2006 most open-field vegetables produced smaller yields – however, the lower supply was reflected in prices which were clearly higher than in the previous year. The demand for horticultural products was also boosted by the small yield of kitchen gardens caused by drought and insufficient irrigation.
Lower yield in open-field production, caused by drought, was also reflected in the demand for greenhouse produce. Consumers increased their use of greenhouse vegetables in place of open-field vegetables. This caused the demand for greenhouse vegetables to remain satisfactory throughout the summer season, contributing to a price higher than in the previous year.
Ulla Jauhiainen | alfa
New 3-D model predicts best planting practices for farmers
26.06.2017 | Carl R. Woese Institute for Genomic Biology, University of Illinois at Urbana-Champaign
Fighting a destructive crop disease with mathematics
21.06.2017 | University of Cambridge
3-D shape acquisition using water displacement as the shape sensor for the reconstruction of complex objects
A global team of computer scientists and engineers have developed an innovative technique that more completely reconstructs challenging 3D objects. An ancient...
Physicists have developed a new technique that uses electrical voltages to control the electron spin on a chip. The newly-developed method provides protection from spin decay, meaning that the contained information can be maintained and transmitted over comparatively large distances, as has been demonstrated by a team from the University of Basel’s Department of Physics and the Swiss Nanoscience Institute. The results have been published in Physical Review X.
For several years, researchers have been trying to use the spin of an electron to store and transmit information. The spin of each electron is always coupled...
What is the mass of a proton? Scientists from Germany and Japan successfully did an important step towards the most exact knowledge of this fundamental constant. By means of precision measurements on a single proton, they could improve the precision by a factor of three and also correct the existing value.
To determine the mass of a single proton still more accurate – a group of physicists led by Klaus Blaum and Sven Sturm of the Max Planck Institute for Nuclear...
The research team of Prof. Dr. Oliver Einsle at the University of Freiburg's Institute of Biochemistry has long been exploring the functioning of nitrogenase....
A one trillion tonne iceberg - one of the biggest ever recorded -- has calved away from the Larsen C Ice Shelf in Antarctica, after a rift in the ice,...
21.07.2017 | Event News
19.07.2017 | Event News
12.07.2017 | Event News
24.07.2017 | Power and Electrical Engineering
24.07.2017 | Materials Sciences
24.07.2017 | Materials Sciences