Subsidies fuel increase in agricultural sector income

Factor income, which is the result of developments in agricultural output, subsidies and intermediate consumption, went up by 7.1 per cent to €73.3 million when compared to 2012.

According to the National Statistics Office, this was brought about by an increase in the gross agricultural production (+3.2 per cent) and a drop in the intermediate consumption (-2.5 per cent).

In 2013, entrepreneurial income (+8.1 per cent) absorbed 92.5 per cent of the total factor income, while dependence on subsidies decreased by 2.5 percentage points, from 29.1 per cent in 2012 to 26.6 per cent in 2013.

Total subsidies absorbed by the industry in 2013 amounted to €19.5 million, down by 2.0 per cent. Subsidies on products declined by 0.6 per cent, mainly due to lower payments received in respect of crop products, while subsidies on production declined by €0.4 million or 2.2 per cent.

An increase of 3.2 per cent was registered in the market value of gross agricultural production in 2013. Characterising this were increases of 5.1 and 4.2 per cent in the market value of livestock and animal products respectively.

Intermediate consumption, which measures expenditure in the production process, decreased by 2.5 per cent to €69.1 million. This decrease was mainly attributable to a drop in expenditure on veterinary services (-8.6 per cent), energy and lubricants (-3.6 per cent) and animal feed (-2.0 per cent). On the other hand, expenditure on fertilisers and plant protection products went up by 5.7 and 0.6 per cent respectively.