Farmers’ income and debt, 2007

The average entrepreneurial income from agriculture increased from NOK 117 000 in 2006 to NOK 136 000 in 2007. Distributed by county, the agricultural income varied from NOK 188 000 in Rogaland to NOK 76 000 in Telemark. The agricultural income depends on the type of farming and the size of the holding. Holdings requiring high levels of labour input during the whole year, e.g. cattle dairying and specialised pig/poultry production, have the highest agricultural income. Specialised cereals and oil-seed production and specialised sheep farming, which are frequently run in combination with other industry or work for a wage, have the lowest income from agriculture.

Highest agricultural income in specialised pig/poultry production

In 2007, 46 per cent of the farmers in Rogaland ran specialised cattle dairying, cattle mixed, specialised pig/poultry or mixed livestock holdings. Within these types of farming the average entrepreneurial income from agriculture varied from NOK 253 000 in cattle dairying to NOK 342 000 in specialised pig/poultry production. In addition, Rogaland had a significant number of holdings with horticultural production that yielded a relatively high income. In Nord-Trøndelag, the aforementioned livestock farm types comprised 39 per cent of the total. Average agricultural income varied from NOK 254 000 in cattle dairying to NOK 325 000 in specialised pig/poultry production. In the country as a whole, the average agricultural income was NOK 226 000 in cattle dairying and NOK 320 000 in specialised pig/poultry production. Within cattle dairying, farmers in Finnmark had the highest agricultural income with NOK 293 000.

Cereals and sheep yielded low agricultural income

Farmers in Telemark had the lowest entrepreneurial income from agriculture with NOK 76 000, followed by Hordaland with NOK 85 000. In Telemark, 41 per cent of the farmers operated holdings with specialised cereals and oil-seed production or sheep production. Only 8 per cent ran cattle dairying. In Hordaland, 37 per cent of the farmers ran sheep farming in 2007, subsequently followed by cattle dairying with 21 per cent. The average agricultural income in the latter farm type was NOK 178 000 in 2007. The average herd size of dairy cows was 14 in Hordaland, compared with 22 in Rogaland.

At country level, 8 per cent of the farmers had at least NOK 400 000 in entrepreneurial income from agriculture in 2007. Among farmers with specialised pig/poultry production the corresponding percentage was 32, while 11 per cent of the farmers with cattle dairying had such a high agricultural income. Only 2 per cent of the specialised cereal farmers and 1 per cent of the specialised sheep farmers had at least NOK 400 000 in entrepreneurial income from agriculture.

The percentage of farmers without positive entrepreneurial income from agriculture has remained at about 25 per cent for several years. Two thirds of these farmers had negative entrepreneurial income from agriculture, while one third had no entrepreneurial income from agriculture. Negative entrepreneurial income may characterise farmers who have just started farming or are expanding. No agricultural income may characterise farmers running hobby-like agriculture or relate to agricultural income that has been assigned to the farmer's spouse.

23 per cent of the farmers had spouse/partner with agricultural income

Married couples/registered partners who run agricultural production together can share the taxable entrepreneurial income. In 2007, 9 600 spouses/registered partners had positive entrepreneurial income from agriculture and the average amount was NOK 135 000. Distributed by all holdings, the average entrepreneurial income from agriculture for spouses/registered partners was NOK 28 000.

Tables:

• Table 1 Entrepreneurial income from agriculture for holders, by county, agricultural area in use and sex of holder.
• Table 2 Entrepreneurial income from agriculture for holders, by type of farming. 2007
• Table 3 Average gross income for holders, by county, agricultural area in use and sex of holder. NOK
• Table 4 Average gross income for holders, by type of farming. 2007. NOK
• Table 5 Holders by entrepreneurial income from agriculture as per cent of gross income, by county, agricultural area in use and sex of holder
• Table 6 Holders by entrepreneurial income from agriculture as per cent of gross income, by type of farming. 2007
• Table 7 Average entrepreneurial income from agriculture for holders, by type of farming and county. 2007. NOK