2016: Factor income of the agricultural sector decreased by 26.7%

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Economic Accounts for Agriculture: 2016

According to latest data published by the National Statistics Office (NSO), Factor income, which is the result of the developments in agricultural output, subsidies and intermediate consumption, went down by 26.7 per cent when compared to 2015, to €61.4 million. This was brought about by a decrease of 79.0 per cent in the subsidies not directly linked with production.

In 2016, entrepreneurial income which registered a decrease of 28.9 per cent absorbed 91.1 per cent of the total factor income. Dependence on subsidies decreased by 23.9 percentage points, from 34.2 per cent in 2015 to 10.3 per cent in 2016.

Total subsidies absorbed by the industry in 2016 amounted to €6.3 million, down by 77.9 per cent. Subsidies directly linked to production remained at par while a drop of 79.0 per cent or €22.3 million was registered in the subsidies not directly linked with production.

A drop of 2.4 per cent was registered in the market value of gross agricultural production in 2016. Characterising this result were drops of 8.5, 4.9 and 2.7 per cent in the market value of secondary activities, crops and livestock respectively. In contrast, an increase of 4.7 per cent in the market value of animal products was registered.

Intermediate consumption, which measures expenditure in the production process, registered a drop of 4.1 per cent to €63.5 million. This decrease was mainly attributable to a drop in the expenditure of energy and animal feed by 8.9 and 7.0 per cent respectively.