FARM ECONOMY OVERVIEW: CEREALS SECTOR Information based on FADN data up to 2013

This brief provides an overview of the production costs, margins and incomes of EU farms specialised in cereal production based on the latest available data (to 2013) from the Farm Accountancy Data Network (FADN). Trends from 2004 to 2013 are provided for EU common wheat, durum wheat, grain maize and barley producers. This work summarises a report presenting more detailed information, including tables at Member State level. EU cereal producers' margins shrank by a third in 2013 as compared to the previous year and a further decline of around 20% is expected for 2014. In fact, in view of the expected rise in production, most cereal prices fell by a third between the end of 2012 and 2013; the exceptions were durum wheat and maize, for which prices fell more slowly. Cereal yields improved slightly, but in line with previous years, while input costs increased by 5% from 2012 to 2013, mainly due to higher prices for fertilisers, seeds and fuel/energy, resulting in narrower margins for all crops. The indicators for farm income and family income show a loss in profitability in 2013.