Agricultural balance sheet: only winemakers and organic farmers make a profit

Every year there are fewer conventional farms – and this time the results are rather poor. Potato and pig farmers in particular were hit hard. In contrast, things went well for winemakers and organic farms.

According to estimates by the chambers of agriculture, the vast majority of full-time farmers in Germany made losses this year. The 2020/21 financial year brought them “a sensitive profit loss combined with a loss of equity”. Several factors contributed to this: for example the consequences of the pandemic, African swine fever or below-average harvest quantities for important crops. The Association of Chambers of Agriculture announced that only organic farms were largely profitable.

Up to 30 percent less for potatoes

According to the information, potato farmers and pig farmers have been hit particularly hard. According to the chambers, potato prices were up to 30 percent lower. The corona restrictions and the two lockdowns in spring 2020 and in winter caused demand to collapse.

The decline in pork prices hit both farmers in Lower Saxony and North Rhine-Westphalia hard. In both federal states, prices fell by over 30 percent. Most other branches of conventional agriculture are also struggling with falling profits, according to the report.

An increase of 25 percent for the winemakers

An exception are the winemakers, who achieved an average of almost a quarter higher results. The organic farmers also performed better than their conventional colleagues in all sectors and, according to the chambers, achieved an average of almost a fifth higher profits.

The number of farms and agricultural businesses in Germany is falling from year to year. According to the Federal Statistical Office, at the end of 2020 there were just under 263,000, including 228,000 family businesses. Of these farms, a good 99,000 were full-time businesses. According to the chambers of agriculture, the trend is continuing to decline due to poor framework conditions. The examination of the chambers is based on the data of representative test farms.