The CAP proposals include 9 objectives. These slides complement the article on the objective 'ensuring viable farm income'.

1. ENSURING VIABLE FARM INCOME
CAP SPECIFIC OBJECTIVES
…explained
Brief No 1 - Slides
OCTOBER 2018
#FutureofCAP

2. Agriculture and
Rural Development2
1. Farm income comparison to the average wage, EU-28
Note: Entrepreneurial income per family work unit is used as a proxy for farm income.
Source: DG Agriculture and Rural Development based on Eurostat data.
29.1%
30.4%
34.8%
33.2%
27.5%
37.1%
42.7%
40.7%
42.7% 43.1%
39.8% 40.5%
46.5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Entrepreneurial income per FWU compared to average wages in the economy

3. Agriculture and
Rural Development3
2. FNVA/AWU by economic size class in the EU-28 (2015)
Note: Note: FNVA/AWU is the Farm Net Value Added per Annual Work Unit in the Farm Accountancy Data Network
(FADN), the equivalent of Eurostat’s factor income per annual work unit.
Source: DG Agriculture and Rural Development based on FADN.
0
5
10
15
20
25
30
35
40
45
50
2 - 8 k€ 8 - 25 k€ 25 - 50 k€ 50 - 100 k€ 100 - 500 k€ + 500 k€
000 Euro

4. Agriculture and
Rural Development4
3. Evolution of agricultural labour input in 000 AWU (EU-28)
Note: AWU is Annual Work Unit.
Source: DG Agriculture and Rural Development based on Eurostat.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
1000AWU
Non-salaried Salaried

5. Agriculture and
Rural Development5
4. Farms with annual income drop above 30% (avg of 2007-
15)
Note: Share of total farms per farm type, EU-28.
Source: DG Agriculture and Rural Development, based on FADN.
0%
5%
10%
15%
20%
25%
30%
35%
40%
Milk
Mixedlivestock
Wine
Sheepandgoats
Olives
Horticulture
Otherfieldcrops
Mixedcropsandlivestock
Cattle
Permanentcrops
combined
Fruits
Mixedcrops
Granivores
COP
% of all farms

6. Agriculture and
Rural Development6
5. Assets and liabilities in EU farming 2015 by MS (000
euro/farm)
Source: DG Agriculture and Rural Development, based on FADN.
0%
10%
20%
30%
40%
50%
60%
70%
0
400
800
1,200
1,600
2,000
2,400
2,800
BE
BG
CY
CZ
DN
DE
EL
ES
EE
FR
HR
HU
IR
IT
LT
LU
LV
MT
NL
AT
PL
PT
RO
FI
SW
SK
SI
UK
Total assets (000 €/farm) Total liabilities (000 €/farm) Liabilities to assets (%)

7. Agriculture and
Rural Development7
6. Assets & liabilities in EU farming, 2015 by farm type (Euro/farm)
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Fieldcrops Horticulture Wine Other
permanent
crops
Milk Other
grazing
livestock
Granivores Mixed
farming
Average of
all farm
types
Total assets (€/farm) Total liabilities (€/farm)
Source: DG Agriculture and Rural Development, based on FADN.

8. Agriculture and
Rural Development8
7. Agricultural income, average wage and share of income support
Source: DG Agriculture and Rural Development, based on FADN.

9. Agriculture and
Rural Development9
8. Income and direct payment by farm size (in hectares of UAA)
Note: UAA is the utilised Agricultural Area.
Source:FADN DG AGRI based on 2012 prices and structures to estimate 2019 income; and CATS data for claim year
2016 for the average direct payment per hectare by farm size.
0
50
100
150
200
250
300
350
0
10,000
20,000
30,000
40,000
50,000
60,000
<5ha
5-10ha
10-20ha
20-30ha
30-50ha
50-75ha
75-100ha
100-150ha
150-200ha
200-250ha
250-500ha
500-1000ha
>1000ha
EUR/haEUR/AWU
Income per worker (FNVA/AWU) DP/ha EU average DP/ha

10. Agriculture and
Rural Development10
9. Distribution of land and direct payments by MS in 2015
Source:CATS data – DG AGRI.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SK CZ PT EE HU BG RO EU-28 IT LV ES HR CY LT DK PL SE MT DE EL SI UK AT BE IE FI FR NL LU
% of direct payments received by 20% of the biggest beneficiaries (in amount) % of agricultural area hold by 20% of the biggest farmers (in size)

11. Agriculture and
Rural Development11
10. Farm income, direct payments and rents
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
BE BG CY CZ DK DE EL ES EE FR HR HU IE IT LT LU LV MT NL AT PL PT RO FI SE SK SI UK
DP, € / ha (FNVA-DP), € / ha Land rent, € / ha
Source: DG Agriculture and Rural Development, based on FADN.

12. Agriculture and
Rural Development12
11. Ratio between EU and world prices (% gap)
Source: World Bank.
0%
50%
100%
150%
200%
250%
300%
350%
1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017
%gap between EU and world price
Wheat Milk Beef (AU) Beef (BR) Sugar

13. Agriculture and
Rural Development13
12. Index of EU and US farm income developments (2010 = 100)
Source: DG AGRI, based on Eurostat and USDA data.
50
75
100
125
150
175
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
EU and US nominal farm income (2010=100)
EU net cash income US net cash income EU entrepreneurial income US net farm income

14. Agriculture and
Rural Development
MORE INFORMATION
https://ec.europa.eu/info/food-farming-fisheries/key-policies/common-agricultural-policy/future-
cap_en#documents
https://ec.europa.eu/agriculture/statistics/factsheets_en
https://ec.europa.eu/agriculture/index_en
14