Farmers’ income and debt, 2008

Agricultural holdings vary in size considerably, from hobby-like production to holdings with a turnover of more than NOK 1 million. This is the main reason for the considerable variation in entrepreneurial income from agriculture. From 2007 to 2008, the average entrepreneurial income from agriculture for all farmers rose from NOK 136 000 to NOK 147 000. In 2008, the income from agriculture amounted to 31 per cent of the gross income. Farmers with positive entrepreneurial income from agriculture had an average agricultural income of NOK 196 000.

Increased agricultural income in cereals production

Yields were larger than normal in cereals and oil-seeds production in 2008. For farmers with specialist cereals and oil-seed production agricultural, income rose 23 per cent from 2007 to 2008, to NOK 84 000. Only 10 per cent of the specialist cereals and oil-seed production farmers had agriculture as main source of income, and for that sub-group the average entrepreneurial income from agriculture was NOK 351 000. Expanded average for all farmers in the counties Østfold, Akershus and Vestfold reflects increased agricultural income from cereals and oil-seeds production. In these counties, holdings with specialist cereals and oil-seed production made up more than half of the total holdings.

Farmers with specialist cattle dairying and farmers with specialist pig/poultry increased their entrepreneurial income from agriculture less than average. Sixty-nine per cent of the cattle dairying farmers and 56 per cent of the pig/poultry farmers had agriculture as main source of income in 2008. The average agricultural income was NOK 242 000 and NOK 339 000 respectively. By farm type, farmers with specialist sheep production had the lowest entrepreneurial income from agriculture in 2008, with NOK 73 000. However, the agricultural income rose 15 per cent compared with the previous year.

One out of four farmers had no positive income from agriculture

Sixteen per cent of the farmers had negative entrepreneurial income from agriculture in 2008. Average deficit was NOK 80 000. This group includes any farmers with small holdings and farmers who had just started farming or were expanding.

A total of 3 800 farmers (8 per cent) had no entrepreneurial income from agriculture in 2008. However, 1 400 of these farmers had a spouse/registered partner who had entrepreneurial income from agriculture. The remaining 2 400 holdings where neither the farmer nor the spouse/registered partner had entrepreneurial income from agriculture are assumed to have had hobby-like agriculture that is not considered an industry by the tax authorities.

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. 2008
• 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. 2008. 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. 2008
• Table 7 Average entrepreneurial income from agriculture for holders, by type of farming and county. NOK