Profitability of agriculture in 2023: trend break and decline

(Photo: Pixabay)

The average agricultural area used by farms was 66.46 hectares, and a farm employed an average of 1.85 people. At the national level, commodity-producing individual farms produced 56 percent of the total net added value, and corporate enterprises 44 percent.

The seven-year growth trend of agriculture was broken in 2023

The sales revenue per hectare increased by only 2 percent, while the operating costs increased by 9 percent. The 6 percent increase in agricultural subsidies did not offset this difference, so overall the profitability of agriculture, when examined based on net value added, shows a 23 percent decrease. We can see that the net value added is broken down into individual farms and corporate enterprises, and in both cases the decrease is 23 percent.

AKI PÁIR