Real income from agriculture – first estimate, Slovenia, 2008

Factor income in agriculture lower than in 2007

In 2008 in agriculture a 10% decrease in the real factor income is expected. The factor income equals the net value added less other taxes on production plus other subsidies on production. The real factor income per annual work unit (AWU) is to decrease in 2008, according to the first estimate by 9%, which is also influenced by the 0.9% lower employment.

Higher prices of agricultural products, decrease in agricultural production volume

In comparison with 2007, the value of the agricultural output in 2008 is estimated to increase by 1%. Volume is to decrease by 4%; prices are to increase almost by 6%.The value of crop output is to decrease almost by 4% as a result of the estimated 8% drop in output volume and the estimated increase in crop product prices by almost 5%. The volume of crop production is estimated to decrease in the field of industrial crops, fruit, grapes, potato and forage plants. Volume increase is expected in the production of cereals; meanwhile the production of vegetables is expected to remain at the previous year level. The value of animal production is expected to increase by 6% due to the price increase by almost 7%, whereas the volume of the animal production remains at the 2007 level.

Value added influenced by increase in intermediate consumption value

Gross value added is expected to decrease by almost 16%. The main reason is increased intermediate consumption value due to the almost 12% higher prices. Net value added is to decrease by almost 34%, whereas consumption of fixed capital remains at the 2007 level.

Decrease in factor income despite higher subsidies

Other subsidies on production, which currently represent the major part of subsidies in agriculture, are expected to increase by 8%. Other taxes on production remain at the previous year’s level. In that case the factor income is to decrease by 10%.

Decrease in employment in agriculture

Employment in agriculture continues to decrease. In 2008, a 0.9% decrease in employment is expected.

The next estimate of real income from agriculture for 2008 will be published in February 2009.

• EAA 1995-2008 (first estimate), 408kB