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Farm Income Report Shows Difficult Year

18 December 2012

FRANCE - The Commission of National Agricultural Accounts has released the results of the farm income forecast for 2012 showing smaller volumes and higher costs of production are threatening rural life in some provincial French areas.

The findings suggested the economy has been supporting many markets with the exception of cow and goat milk.

Arable production of field crops, market gardening and soilless production (eggs) have experienced price increases, occasional volume increases and increased farm income as well.

The report said beef price rises this year were not enough to compensate for declines in volume and increased expenses in animal feed. Commission figures suggest a six per cent drop in beef volumes which, has been described as damaging to rural employment, life and agricultural diversity by the Commission.

The inability of producers’ to pass on costs of production down the supply chain continues to maintain low income structures and maintain price levels.

In response to the report President of the Chamber of Agriculture, Guy Vasseur, said "We are facing an economic environment that forces income gaps between farmers and producers.”

“European decisions and French policy need to respond to production and market challenges by strengthening the diversity of farm based policies and creating stronger synergies between them. The 'protein plan', for example, is in place and ahcieves such aims,” added Mr Vassueur.

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