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Germany's farmers experience substantial growth in earnings and operational profits.

Ministry of National Economy

A farmer spreads liquid manure on a field with his team using the so-called trailing shoe method.
A farmer spreads liquid manure on a field with his team using the so-called trailing shoe method.

Germany's farmers experience substantial growth in earnings and operational profits.

Farmers in Germany enjoyed higher earnings and profits throughout the 2022/2023 financial year. The Federal Ministry of Economics reported that average income for a primary occupation worker shot up by 32.4% to around €61,000 compared to the previous year. Profits, on the other hand, hit 113,900 euros, a hefty 39% increase from the past year. This impressive financial performance marked the most thriving decade in the industry.

The "steep rise in prices for nearly all agricultural products" caused by the Russian invasion of Ukraine was the main catalyst behind this success. The war led to more than offsetting increased energy and feed costs for farmers.

Yet, Federal Agriculture Minister Cem Özdemir (Greens) advised caution: "While it's tempting to feel overly optimistic, we mustn't let it lull us into a false sense of security. We need to stay focused." The Minister expressed the importance of removing barriers and reducing governmental red tape.

Companies specializing in processing experienced the biggest jumps in both income and profit. Per labourer, these companies reported an impressive 86% increase, equating to €72,545, and an even more noteworthy 110.4% profit spike to €125,647 respectively. Arable farming and dairy businesses also felt prosperous, with handsome income gains.

In stark contrast, vineyard owners reported a 9% fall in income earnings, standing at €35,767 in 2022/2023. Their profits suffered similarly, decreasing by a sobering 13.1% to an average of €33,838. Significant contrasts are also present between the German federal states. While incomes increased dramatically above 50% in Mecklenburg-Western Pomerania, North Rhine-Westphalia and Hesse, growth in Schleswig-Holstein and Baden-Württemberg lagged well behind at under 20%.

The Ministry observed that the size and type of farms played a significant role in income disparities. Natural factors like soil quality, elevation, and climate also contributed to regional income fluctuations.

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The Federal Ministry of Economics in Germany attributed the significant increase in operating profits and income for farmers to the surge in agricultural product prices, resulting from the Russian invasion of Ukraine. Despite this promising financial situation, Federal Agriculture Minister Cem Özdemir urged caution, emphasizing the need to remain focused and reduce governmental red tape.

Source: www.ntv.de

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