Farmers’ income and debt, 2005

The agricultural holdings vary considerably in size, from hobby-like production to holdings with a turnover of more than NOK 1 million. This is the main reason for the large variations in entrepreneurial income from agriculture.

In 2005, 2 900 out of 50 300 farmers had an entrepreneurial income from agriculture of at least NOK 400 000. Cattle dairying is the most important branch in Norwegian agriculture and 12 800 farmers operated specialist cattle dairy holdings in 2005. Among these, 7 per cent had an entrepreneurial income from agriculture of NOK 400 000 or more, while 22 per cent had between NOK 250 000 and 400 000 and 45 per cent had between NOK 100 000 and 250 000. In 2005, the average entrepreneurial income from agriculture for farmers operating specialist cattle dairy holdings was NOK 215 000.

Farmers with specialist pig/poultry production had the highest average entrepreneurial income from agriculture in 2005, with NOK 279 000. Only 1 500 farmers operated specialist pig/poultry holdings and 20 per cent of the farmers had an entrepreneurial income from agriculture of at least NOK 400 000 in 2005.

16 per cent of the farmers had negative entrepreneurial income from agriculture in 2005. This group may include farmers with small holdings or farmers who had just started farming or were expanding. 8 per cent of the farmers have no entrepreneurial income from agriculture. Most of these are assumed to run hobby-like agriculture that is not considered an industry by the tax authorities. Another reason may be that the entrepreneurial income from agriculture is assigned to the farmer's spouse. No positive entrepreneurial income from agriculture was most common among farmers who operated specialist cereals and oil-seeds holdings, specialist sheep holdings or various grazing livestock holdings. Among these farmers, every third had no positive entrepreneurial income from agriculture.

For all farmers, the average entrepreneurial income from agriculture increased from NOK 112 000 in 2004 to NOK 147 000 in 2005. Much of the increase is probably due to changes in tax regulations, which entered into force on 1 January 2006. The entrepreneurial income also increased considerably among self-employed in other industries than agriculture from 2004 to 2005, see Income statistics for self-employed persons .

On average, entrepreneurial income from agriculture amounted to 32 per cent of the farmers' total gross income of NOK 465 000 in 2005. Wages and salaries also amounted to 32 per cent, while capital income, other entrepreneurial income and pensions accounted for 19, 13 and 4 per cent respectively.

Married couples who jointly operate an industry may share the taxable entrepreneurial income. In 2005, 10 800 spouses/registered partners had positive entrepreneurial income from agriculture, with NOK 132 700 on average.

The statistics are based on information from tax returns and cover agricultural holdings operated by a natural person. Out of a total of 53 000 holdings in 2005, 50 500 were operated by a natural person, of which 87 per cent were men and 13 per cent were women.

Farmer / holder : The person considered as responsible for operating the holding.

Holding : A single unit both technically and economically, which has single management and which produces agricultural products.

Entrepreneurial income from agriculture : Positive entrepreneurial income from agriculture transferred to the tax return. In addition, entrepreneurial social security benefits in agriculture, forestry and fishery are included. Various deductions such as trade union subscriptions, entrepreneurial deficit (current year or previous years), interest on debt and a separate agricultural deduction are not included.

Tables:

• Table 1 Entrepreneurial income from agriculture for holders, by county, agricultural area in use and sex of holder.
• Table 2 Entrepreneurial income from agriculture for holders, by type of farming. 2005
• Table 3 |Average gross income for holders, by county, agricultural area in use and sex of holder. NOK
• Table 4 |Average gross income for holders, by type of farming. 2005. NOK
• Table 5 Holders by entrepreneurial income from agriculture as per cent of gross income, by county, agricultural area in use and sex of holder
• Table 6 Holders by entrepreneurial income from agriculture as per cent of gross income, by type of farming. 2005