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Published: 25 March 2010

Income differences of farms small by area

In 2008 the taxable result of farms was on the average EUR 17,332 per farm. The result by farm has risen by a total of 17 per cent in five years. The number of active agricultural enterprises taxed on the basis of the act on the income tax of agriculture dropped over the same period from 68,860 to 62,973 farms, so part of the growth in income is due to the over three hectare growth in farm size. Examined by area, the result varied between EUR 15,000 and 20,000 with the exception of the northernmost subsidy area. Farm size and production sector seem to have more impact on the result than the location of the farm. In 2008 the average result on dairy, pig and poultry farms varied on both sides of EUR 40,000, while on farms engaged in cereal production the result remained on the average under EUR 10,000. These data derive from the 2008 Statistics on the finances of agricultural and forestry enterprises published by Statistics Finland.

The development by area and between production sectors was viewed as a panel time series, by means of which the effect of farms ceasing production and changing production sector could be eliminated. Farms selected to the panel review were owned by natural persons and taxed according to the act on the income tax of agriculture and had been operating continuously from 2000 to 2008. Enterprises which met at least one of the following criteria were selected from this population for a closer analysis: a) the farm had in 20002008 each year over 10 dairy cows, b) or each year more than 100 fattening pigs, c) or each year more than 30 hectares of cereals, d) or each year more than five hectares of sugar beet.

In Finland the total number of agricultural enterprises meeting a criterion was 13,692, of which 7,817 were dairy farms, 490 pig farms, 4,805 cereal farms and the remaining 580 farms were selected on the basis of sugar beet production. This group is called the production panel, from which the results can be summarised as follows:
Dairy farms
The result of agriculture in 2008 was almost the same in dairy farms in subsidy areas A and C2, although milk production in area A was around 22,000 litre higher and cultivated area about seven hectares larger than in area C2. The result per litre of milk produced was EUR 0,21 in area A and EUR 0,24 in area C2. The amount of subsidies was around EUR 57,000 per farm in both areas A and C2. In area B the amount of subsidies was about EUR 6,000 lower than in areas A and C2.
Pig farms
The result calculated per pig has stayed at around EUR 104 for five years. In 2008 the result of pig farms in subsidy area C2 remains at EUR 94 per pig, while in more southern subsidy areas the result varies between EUR 104 and 108. On pig farms in area A the amount of subsidies was around EUR 102,000, while in area C2 it fell about 20,000 short of this.
Cereal farms
Calculated per field hectare the result was the highest in area C1 and the lowest in area C2. The difference between the areas mentioned was around EUR 100 per hectare. The average size of cereal farms varies between subsidy areas from 85 hectares (area B) to 93 hectares (area A). The result between subsidy areas fluctuates from EUR 29,000 to 32,000 per farm.

Results of farms belonging to the production panel by area in 2008

Number of farms	Whole country	Subsidy area A	Subsidy area B	Subsidy area C1	Subsidy area C2
—Production panel, total	13,692	1,974	3,939	2,699	4,040
—Dairy farms	7,817	355	1,307	1,718	3,443
—Pig farms	490	89	177	141	78
—Cereal farms	4,805	1,355	2,057	834	518
Result EUR per farm:
—Production panel on average	41,466	36,833	36,483	43,011	46,367
—Dairy farms	47,761	48,313	45,474	47,410	48,968
—Pig farms	54,852	64,753	54,308	53,993	47,889
—Cereal farms	30,527	31,798	29,516	32,181	28,918
Result per unit
—Result of dairy farms cent per litre of milk	23	21	22	23	24
—Result of pig farms EUR per fattening pig	104	104	106	108	94
—Result of cereal farms EUR per cultivated hectare	352	343	346	419	319

Source: Statistics on the finances of agricultural and forestry enterprises, Statistics Finland

Inquiries: Hannu Maliniemi (09) 1734 2796

Director in charge: Ari Tyrkkö

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Updated 25.3.2010