Farm Income Has Regressed 20 Years

31 December 2012, at 2:42pm

SPAIN - Challenging weather, welfare legislation, market regulation and rising costs of production characterised 2012, according to a COAG (Coordinator of Farmers and Ranchers Organisations) agricultural review which stated 2012 farm income equaled figures for 1992.

Figures released by Minister of Agriculture, Food and the EnvironmentAverage farm income for 2012 has been shown to have slumped to the same level as seen in 1992. The index, which calculates fluctuations in 'real' agricultural income, shows a peak in 2003 which has since declined despite a 1.1 per cent increase in income on 2011.

In the review COAG have attributed this drop partly to 2003 Common Agricultural Policy Reform which meant a subsidy reduction of 29.5 per cent. Government support reduction, forecast to continue into 2013, is expected to deliver 1.080 million euros to the agricultural sector. This would mean agricultural subsidies at a third of what they were in 2009 (4.835 million euros).

COAG expressed disatisfaction over current estimations for 2014-2020 European Union spending which suggest Spain will lose a further 11-16 per cent of agricultural funds.