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Lifting Farmers Out of Poverty: Comparisons and Outlook


The imminent opening of the Salon de l'Agriculture highlights, rather than conceals, the ongoing agricultural crisis in Europe—a crisis that has recently gained significant media attention in France. It serves as a reminder of how one of the most vital roles in our daily lives—producing our food—is also among the most challenging.


In this inaugural edition of HAïAT's Point of View, our experts delve into the economic situation of farmers, examining their incomes to better understand the challenges they face and proposing solutions to elevate them from poverty.

 

 

The Financial Struggle of Farmers: they depend on their spouse or secondary income to survive.

 

Despite being crucial to the rural economy and national food security, French farmers face stark inequalities when compared to the general population. Although data suggest that the average disposable income of farming households is 23% higher than that of all working French families, these figures mask deep disparities.

 

Despite being crucial to the rural economy and national food security, French farmers face stark inequalities when compared to the general population. Although data suggest that the average disposable income of farming households is 23% higher than that of all working French families, these figures mask deep disparities.

 


Average disposable income of a farm household in 2020

(including at least one farmer)




Données INSEE, Analyse HAïAT


Furthermore, farming income constitutes only 34% of the total household income for farmers, pointing to a significant reliance on alternative income sources. Many farm households turn to secondary employment, handicraft sales, agritourism, or pensions to make ends meet.

 

Income disparities within the agricultural sector are also notable. Revenue varies greatly by the type of production. Winegrowers, for example, earn the most revenue from production (around €26.6K), while sheep, goat, and other herbivore farmers are at the lower end of the scale (€11.7K). Moreover, 26% of the latter group live on less than 60% of their profession's median standard of living.

 

 

Disparity in farm income and household standard of living by dominant agricultural production



INSEE data, HAïAT analysis

 

 

Farmers: The Working Poor. 1 in 5 farmers live below the poverty line for an extra 20 hours of work a week.

 

 

The French agricultural business model, characterized by fluctuating farm-gate prices, high operational costs, and market instability, places farmers under immense financial pressure. As a result, nearly one in five farmers lives below the poverty line, a rate significantly higher than the rest of the working population. This represents over 18% of farm households, compared with 11% of working families in France. In this respect, the gap in living standards between the first and last decile is well above the French average (x3.3 for working households in France, x4.7 for farm households).


Farmers' standard of living is more unequal than the rest of the working population



INSEE data, HAïAT analysis

 

Despite working an average of 20 additional hours per week compared to the average worker, farmers' net hourly income is substantially lower, at 60% below the average and 30% below the minimum wage. Farmers typically work over 57 hours a week, including evenings and weekends.

 

 

A farmer works 20 hours a week more than the average worker, and his net hourly income is 60% below the average and 30% below the minimum wage.



INSEE data, HAïAT analysis



So, how can we help farmers make a better living from their work?

 

3.2 billion euros a year to enable farmers to earn the minimum wage

 

Addressing the challenge of ensuring farmers earn a decent hourly wage is crucial for public health and food sovereignty. State aid could play a pivotal role in this, potentially enabling farmers to at least earn the minimum hourly wage. Our analysis suggests that the required investment from the state would be approximately 3.2 billion euros annually—comparable to the budget for the Paris Olympic Games 2024 or the yearly expenditure on electric vehicle programs. This investment, though initially estimated, would need further refinement based on the specifics of agricultural production.

 


The budget that the State could devote to balancing farmers' incomes, compared with other budgets already allocated



INSEE data, HAïAT analysis

 

 

Current proposals, amounting to only 0.4 billion euros, fall short of ensuring farmers receive the minimum wage.

 

Ensuring a decent life for those who feed the nation must become a national imperative.


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