December 21, 2007

High grain prices upping French farmers' incomes

Thanks to soaring agri-commodities on the world market, including cereals, farmers in France, according to forecasts published by the French Ministry of Agriculture.

The Ministry states that average agricultural income per farmer has increased by 12 percent (excluding inflation) in 2007, following a gain of 16.1 percent in 2006 and a decrease of 9.7 percent in 2005, due to high global grain costs.

Crop farmers benefited most from increased market prices. Income for grain and oilseed farmers almost doubled (+98 percent) in 2007.

But the increased cost for animal feed have cost beef producers to lose 23 percent of their income, while sheep farmers saw their income drop by 28 percent and reach the lowest level since 1990. Dairy farmers also faced a 4 percent decrease in income.