WRITTEN QUESTION E-2722/00 by Christopher Huhne (ELDR) to the Commission. Agricultural incomes.
Date: 2000-09-01
Institutions: European Parliament, Provisional data
Subjects: farm income, farmers' income, national income, statistical method, supplementary income

8.5.2001

EN

Official Journal of the European Communities

C 136 E/81

The Honourable Member(cid:146)s attention is drawn to the fact that the Commission is taking several measures to
reduce air traffic congestion and air traffic delays. Following the high level group report, which is expected
to be finalised by October 2000, the Commission intends to present a number of legislative measures at
Community level, to harmonise, manage, design, regulate and ensure efficient utilisation of European
airspace without decreasing the current safety levels.

(2001/C 136 E/091)

WRITTEN QUESTION E-2722/00

by Christopher Huhne (ELDR) to the Commission

(1 September 2000)

Subject: Agricultural incomes

What was the average income (in ecus/euros) of people engaged in agriculture in each Member State in
each of the last ten years?

What proportion of the national average income does this represent in each Member State in each of the
last ten years?

Answer given by Mr Fischler on behalf of the Commission

(13 October 2000)

Farm income may be defined in different ways. For comparison of levels of income from agricultural
activity among Member States, the Commission generally uses the real net value added at factor cost per
annual work unit that is available for all Member States. This parameter covers income generated by an
agricultural activity, but it is not fully representative of the overall income of farmers. First of all, rents,
interest and salaries paid are not deducted. Secondly, farmers may receive other types of income such as
wages, social benefits, income from non-agricultural activities, or pay taxes, social contributions, etc. The
income per capita is expressed on the basis of an annual working unit that broadly corresponds to a full-
time working equivalent.

The importance of the income from an agricultural activity within the total disposable income of the
agricultural population and of income elements such as rents, interests and wages varies considerably from
one Member State to another. These elements, combined with the harmonisation of the income calculation
across Member States, should be borne in mind when attempting to draw conclusions from any income
comparison exercise.

The average agricultural income for the 15 Member States for the 1990-1998 period is given in the tables
which are sent direct to the Honourable Member and to Parliament(cid:146)s Secretariat, in euros and purchasing
power standard. Income statistics are not given for 1999 as the agricultural accounts are still provisional
for that year. Furthermore,
income statistics for 1999 have been established on the basis of a new
methodology for the agricultural accounts. Data are not available for all Member States on the basis of this
new methodology over a long time period.

Regarding the second question, it should be underlined that the proportion of the national average income
represented by the agricultural income, as defined above, does not constitute a meaningful indicator of the
relative situation of people engaged in agriculture. The income indicator used for agriculture is not
comparable with the average income per capita in the rest of the economy, notably in the sectors where
wages represent the main source of income, as agricultural income constitutes both the income of the
farmer (from his work) and the income or profit of his enterprise (this income is referred to as a mixed
income in national accounts). Moreover, the number of people engaged in agriculture is expressed in
volume terms, i.e. in annual work units, whereas such statistics is not established for other sectors of the
economy.