Average farm business income in the Netherlands drops slightly

In 2024, average farm business income in the Netherlands was slightly lower with fierce competition within the EU significantly impacting the income of pig farmers. Yet, greenhouse horticulture fared much better notably seen in the production of fresh cut flowers where growers achieved a positive return on their activities. Houseplants seem to have reached their sales peak; the average income of houseplant and bedding plant growers was €213,000, a decrease of €115,000 compared to 2023.

Wageningen Economic Research (WER), formerly known as LEI, in collaboration with Dutch statistics office CBS, on Monday 16 December updated their farm income forecast for 2024. According to the agency, average Dutch farm business income was €109,000 in 2024, down from €219,000 in 2023. The figures represent the financial performance of what WER describes as ‘the unpaid annual work unit’ or the financial return to all unpaid labour on the farms (farmers and spouses and family workers).

Driving growth behind the Dutch farm income increase is greenhouse horticulture with Western Europe’s record temperatures in summer raising the appetite and price for ‘hydrating’ bell peppers and tomatoes from Dutch greenhouses. Overall, the income for Dutch vegetable greenhouse grower was €290,000.

Average greenhouse business income in 2024 is valued at €307,000 per unpaid annual work unit. This is €20,000 higher than in 2023 and almost €70,000 above the average income between 2019-2023.

The more than 4 per cent increase in income was enough to offset the 4 per cent increase in paid costs and depreciation. Within and between the three distinct sub sectors – greenhouse vegetable, greenhouse grown houseplants/bedding plants and greenhouse cut flowers – there is a wide spread in income trends.

EU gas and electricity markets returned to a more stable and predictable situation in 2024. Yet, the impact of a less volatile market varies per individual business and depends on, for example whether the company uses (LED) lighting or a combined heat and power (CHP) plant, geothermal heat or solar energy. Does the company has battery storage facilities and does it negotiate fixed gas price contracts are also important questions to consider.

The average vegetable farm income in 2024 is valued at around €320,000, an increase of €15,000 when compared to 2023.

Costs decreased more than yields. The slight decrease in revenues is mainly due to less revenue from energy sales, due to a lower price for delivered back electricity. Revenue from crops increased by 1% on average. Mainly due to lower energy costs, total costs were lower due to lower energy costs.

In greenhouse tomatoes (the Netherlands’s greenhouse cash crop in terms of production area),  average prices are lower than last year due to more imported tomatoes. The price of bell peppers fell slightly on average with an increase in acreage and competition in spring from Spain. Cucumber growers have a good year due to significantly higher prices, on slightly lower production due to dark weather in spring. The 2024 cucumber price is well above the five-year average.

The average cut flower farm income is estimated at around €370,000 in 2024, an increase of €140,000 compared to 2023.

The income from flower sales increased sharply due to mostly higher prices at lower volumes, benefiting from buoyant export sales and lower supply volumes from abroad.

Cut flower companies with cogeneration plants also earned money by selling electricity back to the grid, although generated electricity decreased. As the gas price also fell, it remained attractive to deploy the CHP. Total costs are estimated around 7 per cent higher. The decrease in energy costs was offset by an increase mainly in crop protection costs and labour costs due to increased collective wages.

The houseplant/bedding plant farm income is valued at around €213,000 in 2023, a decrease of around €115,000 compared to 2023.

Income has fluctuated widely in recent years. Since 2020, there have been peaks and troughs. The income estimated for 2024 is still as much as €15,000 above the average income of the past 5 years.

Costs for houseplant and bedding plant growers rose by over 9% on average due to an increase in average farm size and across-the-board increases in input costs, with the exception of energy costs (-10%). Total revenues increased by 3% on average. In particular, revenues from bedding plants increased as they benefited from strong demand. For houseplants, the increase in revenue was limited. This was offset by a decline in energy sales revenues. Nevertheless, these revenues remained much higher than in 2020 and before.

In bulb farming, the average income is estimated at around €200,000 in 2024, an increase of over €50,000 compared to 2023. Yields increased by 5% on average in 2024 due to a combination of a better price for flower bulbs at a lower volume.

The Netherlands’ second-wettest autumn and the second-wettest winter – since national recordings began- led to a disappointing bulb harvest. And bulb prices have increased significantly. Total expenses and depreciation paid were similar to last year.

Average farm income in the Dutch nursery stock sector is estimated at around €132,000, down  €73,000 from 2023, mainly due to an average 7% increase in costs. The increase in costs is mainly in imputed costs (including planting materials), one of the largest cost items on the farm combined with higher labour costs. Income declines by 3% on average due to fewer products sold and lagging selling prices. This puts income at the 2019-2023 average.