Provisional account for agriculture for 2020 Sharp fall in grain production

In 2020, agricultural production falls in value by 2.1%. In general, the health crisis has less affected agriculture than on other economic activities, although the impact on production conditions across the sectors is very real. Its effects on demand are unclear due to the shift in consumption caused by the lockdown and closure of cafes and restaurants. The health situation at the end of 2020 could accentuate this decline. Weather conditions are, however, the dominant factor in the drop in crop production, in particular grain production (−12.1%). The value of animal production is also falling, but at a steadier pace, with the increase in volumes not entirely offsetting the drop in prices.

At the same time, costs for farmers are increasing slightly (+0.3%) with prices remaining relatively stable. As such, and as with production, the added value of the agricultural sector is falling. Overall, according to the estimates of the provisional account for agriculture, the gross added value at factor cost per worker is expected to decrease by 6.5% in 2020 in real terms, after a drop of 4.3% in 2019.