2.5% rise in factor income of agricultural sector in 2014

In 2014, factor income of the agricultural sector increased by 2.5 per cent.

Factor income at current market prices, which is the result of the developments in agricultural output, subsidies and intermediate consumption, went up by 2.5 per cent when compared to 2013, to €74.7 million. This was brought about by an increase of 8.9 per cent in the subsidies not directly linked with production and a drop of 6.8 per cent in the intermediate consumption.

In 2014, entrepreneurial income, which registered an increase of 2.8 per cent, absorbed 92.8 per cent of the total factor income. Dependence on subsidies increased by 1.2 percentage points, from 26.6 per cent in 2013 to 27.8 per cent in 2014. Total subsidies absorbed by the industry in 2014 amounted to €20.8 million, up by 6.9 per cent.

Subsidies directly linked to production declined by 15.5 per cent, mainly due to lower amounts received in respect of crop products. In contrast, an increase of 8.9 per cent or €1.6 million was registered in the subsidies not directly linked with production.

A drop of 3.1 per cent was registered in the market value of gross agricultural production in 2014. Characterising this result were drops of 5.5, 2.8 and 2.2 per cent in the market value of animal products, crops and livestock respectively. This was mainly brought about by a decrease in the producer prices of milk, potatoes and broilers.

Intermediate consumption, which measures expenditure in the production process, registered a drop of 6.8 per cent to €64.4 million. This decrease was mainly attributable to a drop in the expenditure on animal feed, veterinary services and maintenance of buildings by 10.1, 9.0 and 7.3 per cent respectively.