Real income from agriculture - first estimate, Slovenia, 2021

The real factor income per AWU in agriculture expected to decrease by 20% over 2020

Despite significantly higher prices, factor income in agriculture is expected to decrease compared to 2020 due to a significant volume decrease in crop production and unchanged growth in animal production. Production costs are expected to be much higher than in 2020 due to higher input prices.

  • 3 December 2021 at 10:30
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Factor income in agriculture significantly lower

According to the first estimate, the factor income in agriculture in 2021 will be 20% lower in real terms than in 2020. However, the 2020 harvest, with which we compare the 2021 harvest, was also not the best. It is estimated that the value of agricultural production will decrease by 4% compared with the previous year; the costs will be significantly higher due to higher prices of some important inputs, which negatively affects all income indicators. It is assumed that the subsidies value will stay at the previous year’s level in nominal terms and decline by 1% in real terms. The factor income per annual work unit is expected to decrease by 20%, whereas no significant difference in employment is expected compared to the previous year.

Significantly lower volume of agricultural production and  higher prices

The value of the agricultural output in 2021 is expected to amount to EUR 1,318 million. The value decrease is the consequence of lower volume (by 12%) and higher prices (by 9%).

Lower crop output value than in 2020 despite significantly higher prices

The value of crop production is expected to be 7% lower than in 2020, with production 20% lower and prices 16% higher than in the previous year. A lower value is expected in all areas of crop production as a result of a volume decrease. The only exception is cereals, where lower production is expected, but such a high rise in prices is indicated that the value of cereals will be higher by almost a third compared to the previous year.

The value of fruit is expected to be halved compared to 2020. The volume of fruit production in 2021 is comparable to the worst fruit harvest of 2017. Compared to 2020, a little more than 40% of last year's fruit production is expected and a fifth higher price. Compared to 2020, the value of industrial crops is expected to be one-fifth lower due to lower production quantity. Almost a fifth lower value is also expected for potato output due to a volume decrease by a quarter, despite a tenth higher prices. The value of grapes or wine production is expected to decrease by almost a tenth due to a volume decrease by a fifth and despite higher prices. The volume of vegetables is estimated to be more than a tenth lower than last year, but the value of vegetables is expected to be only slightly lower due to the higher prices. The value of fodder plants remains at last year's level due to a volume decrease, which was offset by a price increase.

The animal output value remains at the 2020 level

It is estimated that the value of livestock production will be 1% higher due to the unchanged volume compared to 2020 and a price increase by 1% as well.

Compared to 2020, no changes are expected at the aggregate level of animals, as the volume, prices and value of animals remain the same as in the previous year. However, differences are expected for individual kinds of animals. Output value increase is expected in the production of cattle, and sheep and goats. In cattle, an increase in value is expected due to the higher prices, and in sheep and goats the output value increase due to the volume increase. For all other kinds of animals, output values are expected to decline. The largest output value decrease is expected in pigs due to the lower prices. The value of poultry is also expected to be lower due to a volume decrease and lower prices.

The animal products output is expected to increase slightly due to the price increase. Milk has the greatest impact on the value of animal products, where higher production and higher prices are expected. Eggs as well as other animal products output values are expected to decrease in comparison with 2020.

Higher production costs are expected due to significantly higher prices of energy and fertilisers

The value of intermediate consumption is expected to increase by 7% in real terms due to the price increase.

It is expected that the value of almost all input items (except seeds) will go up. Substantially higher costs are expected for energy (by 17%) and fertilisers (by 22%). Higher costs are expected also for feedingstuffs, maintenance, and other services. The costs of other input items are expected to remain the same as in the previous year.

No substantial change in employment

Employment is expected to remain at the 2020 level.

Agricultural output, gross value added and employment, Slovenia
Agricultural output, gross value added and employment, Slovenia
1) estimate
Source: SURS
Annual changes of the main agregates in agriculture, Slovenia, 2021
Annual change
of real values in basic prices 1)
%
Output of agriculture, basic prices-4.0
  Crop output-7.3
  Animal output0.6
Intermediate consumption7.0
Gross value added, basic prices-18.8
Consumption of fixed capital0.2
Net value added, basic prices-35.9
Other taxes on production0.0
Other subsidies on production-1.3
Factor income-19.7
Employment-0.3
Real factor income per annual work unit-19.5
1) The deflator is the implicit price index of GDP at market prices. According to Eurostat data is 101.2726999 for the year 2021.
Source: SURS
When making use of the data and information of the Statistical Office of the Republic of Slovenia, always add: "Source: SURS". More: Copyright.