Last Year’s Farm Management Conditions 'All-Time High'... Impact of Rising Fruit and Livestock Prices

2021 Agricultural Household Sales and Purchase Price Survey Results

[Asia Economy Sejong=Reporter Son Seon-hee] Due to the significant increase in agricultural and livestock product prices last year, the management conditions of related farms have improved to an all-time high.

According to the "2021 Farm Sales and Purchase Price Survey Results" announced by Statistics Korea on the 17th, the farm terms of trade index (2015=100) last year was 115.9, up 5.2% compared to the previous year. This marks a consecutive two-year increase of over 5%, as well as a three-year continuous upward trend with 104.7 in 2019 and 110.2 in 2020.

The farm terms of trade index compares the price increase rates of agricultural products produced and sold by farms with the prices of daily necessities or agricultural equipment purchased by farms to assess farm profitability. In other words, if the farm sales price index is higher than the purchase price index, the terms of trade index rises.

Last year, the farm sales price index was 128.7, a 10.1% increase from the previous year. Major items with significant price increases compared to the previous year include eggs (59.8%), non-glutinous rice (11.4%), garlic (88.7%), Korean beef (Hanwoo) (11.7%), pears (43.1%), and green onions (44.9%).

On the other hand, the farm purchase price index was 111.1, rising only 4.7% compared to the previous year. Feed costs (11.2%), food and non-alcoholic beverages (6.4%), agricultural fuel and heating expenses (24.7%), and labor costs (8.9%) increased.