Institute of

BW Farm Economics

Economic Situation and Income

A lot of numbers in a spreadsheet with a compass on top and a 3D diagram on top — We provide orientation in the data overload

Reports and analysis of the economic situation in the agricultural sector form the basis for (agricultural) policy interventions at national and European level.

Agricultural incomes are not only determined by price developments on agricultural markets, but depend also on the conditions of the legal, technical and, in turn, political framework. Based on comprehensive evaluations of agricultural statistics and with the help of own survey data, we analyse the economic situation of farms in Germany and the European Union. For this, we determine, among others, how profitable the production factors (e.g. land, labour and capital) are allocated and analyse the effects of exceptional market disturbances and crises on the stability and liquidity of the farms. Furthermore, we investigate production and investment decisions and associated income effects as well as adjustments in the use of production factors. In this context, we examine farm strategies such as cooperation, diversification and specialisation as well as the success factors for positive farm business developments. Our research focuses currently on the analysis of income developments and distributions in different farm types and regions as well as the assessment and evaluation of the impact of agricultural policy measures. An important database for our studies is the Farm Accountancy Data Network (FADN). In addition to information on incomes, it also includes information on the farm structure as well as on production characteristics. In close cooperation with the Federal Ministry of Food and Agriculture and the European Commission, we are continuously working on the further development of this database. This involves the proper definition of the economically relevant units as a result of increasingly complex farm structures or the inclusion of additional ecological and social information so that conclusions on specific sustainability aspects of farms are also possible.

Dossier - Farm income

Einkommen und Beschäftigung - Einsiedlerhof Falkenberg

Additional information on income and employment can be found in the Dossier.

Ongoing Projects Finished Projects

Ongoing Projects

Agricultural policy instruments to support farm level risk management

Both climate change and increasing liberalisation of EU agricultural policy involve the danger of increasing volatility and economic risk at the farm level.

Analysis of the economic situation of organic farming

The organic area shall further grow in view the German government. This requires that the organic management is profitable. Book-keeping records of the Farm Accountancy Network provide relevant information, if this was the case in the last years.

Conversion and transmission of national farm returns and analyses with regard to FADN

The Farm Accountancy Data Network (FADN) is a harmonised data base throughout the EU that consists of accounting data from a representative sample of agricultural holdings. Based on this income, structural and production developments can be analysed. The EU Commission uses the FADN extensively to evaluate the impacts of the CAP and to design new policy measures.

Further development of the Thünen model network - Farm models

EU agricultural policies as well as international trade policies have changed considerably during the last decades. This has led to an increased demand from policy makers and scientists for model-based quantitative assessments of the consequences of respective policy reforms.

Future of sheep farming in Germany

Sheep farmers make an important contribution to the preservation and maintenance of landscapes and at the same time produce valuable food and wool. But what is the current state of sheep farming? What types of sheep farms are there in Germany? What are the perspectives and challenges? These questions will be addressed in the project.

Impact analysis of EU and national agricultural policies

The next reform is just around the corner - that much is clear to anybody following agricultural policy in Germany and the EU. While some may groan in exasperation, these continuous adjustments reflect the extremely dynamic change of framework conditions and societal expectations that the agricultural sector is faced with.

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Finished Projects

Distributional effects of CAP liberalisation

The Common Agricultural Policy (CAP) of the EU has a significant influence on farm incomes. But does the CAP reduce income gaps in the agricultural sector? What (unintended) distributional effects would further liberalisation of the European agricultural sector entail?

The cluster horticulture in Germany

In national accounting statistics in Germany horticulture is limited to primary production and a few selected horticultural services. Contrary, all actors of the value chain are involved in producing horticultural products. For this reason official statistics do not reflect the economic performance of the horticultural sector completely.

The living and working conditions of women on farms in Germany

Agriculture is just for men? Not at all! In order to shed light on the living and working situation of women on farms and to clarify their contribution to agriculture and rural areas, the Thuenen-Institute for Farm Economics and the University of Göttingen are jointly conducting a Germany-wide study with interviews and an online survey.

What is the impact of investment support in agriculture?

If agricultural holdings are keen to persist they ought to invest in technology and buildings. The state supports them via grants and garantees. We investigate the effectiveness and efficiency of these aids.