Finnish farm income in 2005 will the lowest in years, according to provisional figures from MTT Agrifood Research Finland. Total income for the farming industry is down by 8% compared with 2004 mainly due to higher input costs.
Farm income for this year is provisionally forecast at €980 million, compared with €1.07 billion in 2004, and an average of €1.10 billion for the period 2000-2004. The farm income figure calculated by MTT indicates compensation for the labour input and capital invested by farmers in agriculture and horticulture.
While the total return on agriculture and horticulture in 2005 is expected to increase by 1% compared with 2004, this is offset by the increased cost of production. Production costs are forecast to rise by 4% in total this year. “The higher cost of petrol, in particular, has raised farmers bills. Fertiliser costs are also higher. Also, the costs of machinery and buildings have increased sharply this year” says Jyrki Niemi, an agricultural economist at MTT.
Ulla Jauhiainen | alfa
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