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Many Swiss farmers find themselves exposed to high fixed costs on their farms, which can hardly be contained over time. This in turn reduces farm incomes.
In Germany, farmers are currently protesting loudly for more income. Your Swiss colleagues discreetly show their solidarity by hanging rubber boots on town signs. But what about incomes in the Swiss landscape? The figures from Agroscope show: From 2012 to 2022, average Swiss income per company rose from 88,000 to 111,000 francs.
High fixed costs
Actually good news. However, the figures also show that the average Swiss costs per company have increased in recent years. Between 2012 and 2022 the increase is almost 50 percent. Farmer Vanessa Monhart from “Waldhof”, a small dairy farm in the Zurich lowlands, says: “When the milking machine is running, it consumes electricity. If the tractor is broken and I can’t repair it myself, I have to go to the mechanic. We have high fixed costs that cannot easily be reduced.”
Pay attention to where you could save money. However, if you constantly save, the need for investments would increase significantly. This is how you cut your own flesh.
Prices for intermediate services have risen significantly
But farmers should not be held responsible for the increased costs, says Martin Rufer, director of the Swiss Farmers’ Association. «Agriculture is very cost-conscious. The problem is that prices for inputs such as energy, machines, buildings and fertilizer have risen sharply in the last two years, by 14 percent. These price increases then lead to increasing production costs.”
The Swiss Farmers’ Association is demanding prices for agricultural products that cover the higher input costs.
Investments that are too high and too rapid
National Councilor Kilian Baumann, Green Party Canton of Bern, is President of the Association of Swiss Small Farmers. He sees the issue of cost developments in Swiss agriculture differently than the director of the farmers’ association. “We have the problem in Switzerland that there are very strong incentives for farmers to immediately spend the money they receive.”
Legend: From 2012 to 2022, average Swiss income per company rose from 88,000 to 111,000 francs. Keystone/Christian Beutler
A lot would be invested. In expensive buildings, in expensive machines such as large tractors. That’s why farmers’ costs are high, says Baumann. Example: A new tractor costing several hundred thousand francs causes correspondingly high depreciation every year.
Border protection inhibits cost awareness
At the “Waldhof”, farmer Vanessa Monhart tries to optimize her costs as much as possible. But this does not apply to all of Swiss agriculture, says Patrick Dümmler, an expert on agricultural policy from the liberal think tank Avenir Suisse: “This is standard in industry because we are exposed to international competition. You don’t just look at the yields, but also at the costs – that hasn’t quite arrived in agriculture yet.”
This also has to do with the fact that Swiss agriculture is only exposed to international competition in very few parts because there is border protection. This means: Many local agricultural products are protected from competitive imports (through high tariffs and taxes).