Flemish farmers worry about future of agricultural economy

The economic index of Flemish agriculture and horticulture dropped sharply in the spring of 2022, according to the Flemish centre for agriculture and horticulture (VILT).

Satisfaction with the past six months has fallen and expectations for the next six are dropping to the lowest point since their survey began in 2007.

“Farmers are very concerned about the rising costs of mainly feed, fertiliser and energy due to the war in Ukraine,” said Flemish Minister of Agriculture and Food Hilde Crevits.

“The crisis could lead to serious market distortions in agricultural and food products. Rising inflation and the loss of consumer purchasing power are also worrying.”

Survey of farmers reveals deep pessimism for the future

VILT’s report measured optimism from farmers regarding the previous six months and the next six months and identified a business cycle index between 0 (all farmers reporting very negative feelings) and 100 (all farmers reporting positively).

Satisfaction about the past six months dropped from 78 to 70, but fell even more sharply when looking towards the future, from 80 to 60.

The decline occurred in all but one sub-sector of agriculture. Dairy cattle and arable farming also recorded a decline. While the pig-breeding sector is rising somewhat, it remains at a very low level.

“All horticultural sectors show a decline in the index,” VILT reports. “For vegetables grown outdoors and vegetables grown under glass, the index even drops to the lowest figure since the survey began in 2007.”

Plans for future investments despite pessimism

Despite the drop of the business cycle index for most sectors, the share of farmers and horticulturalists who plan investments in the coming year did not see a decline.

“Sectors where prices have gone well, such as arable farming and meat cattle, even show an increase in planned investments. In the pig sector, we see the opposite trend: only 12% of the interviewed pig farmers are planning one or more investments within the year.”

Flemish farmers can expect some relief from European support measures in response to the situation in Ukraine.

(TOM)

© BELGA PHOTO ERIC LALMAND - OVERIJSE, BELGIUM: Illustration picture shows greenhouse with plantations in Marie's garden, an organic farm where you can choose and take fruits and vegetables by yourself in the field, in Overijse, Wednesday 05 August 2015.