cultivar_22_Final_EN

96 ANALYSIS AND PROSPECTIVE STUDIES CULTIVAR Issue 22 APRIL 2021 P = Provisional data Source : GPP, from the NA and EAA (base 2016), INE Data last updated: 26 February 2021 Table 7 – Investment in agriculture and the economy as a whole 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019P Average annual growth rate (%) Rate of change (%) 2000-2019P 2010-2019P 2018-2019P GFCF Agriculture (million EUR) current prices 810 825 837 834 790 811 874 968 945 1 043 1 048 1 084 1,5 2,9 3,4 constant prices 2016 1 005 918 861 842 801 817 863 964 945 1 014 1 018 1 035 0,2 2,1 1,7 GFCF Economy (million EUR) current prices 35 960 36 668 36 953 32 437 26 631 25 150 26 013 27 886 28 893 32 888 35 953 38 839 0,4 0,6 8,0 constant prices 2016 44 057 39 953 37 526 32 801 27 319 26 006 26 601 28 176 28 893 32 213 34 204 36 044 -1,1 -0,4 5,4 to a decline in the production of fruit (-11.1%), veg- etables and horticultural products (-7,9%), and wine (-5%), sectors comprising 46% of agricultural output. Agricultural labour productivity has tended to grow since 2010 (3.2% per year), with agricultural GVA in volume declining at an average annual rate of -0.2% and input of labour falling 3.3% per year. In 2020, there was a drop in productivity (‑5.1%), to which contributed a fall in GVAmp in volume (-10.4%) and agricultural labour input of -5.6%, less than the aver- age for the decade (‑3.3% per year), with paid labour, which had not fallen since 2011, down 9.3% and non-paid labour 3.5%. In terms of farm income, measured as the ratio of real factor income (real NVAfc) to agricultural labour input, there has been a 3% annual growth since 2010 due to the combination of higher labour productiv- ity (up 3.2% per year) and subsidies less taxes (up 1% per year). In 2020, income fell (-3.2%) after con- secutive years of rises due to declining agricultural production (-10.4%) since subsidies less taxes grew significantly (7.8%) – both subsidies less taxes on production (6.4%) and on products (14.5%) – miti- gating the impact of GVA on income. In 2010–2019, agricultural investment grew 2.1% per year in volume as opposed to the economy as a whole, which fell 0.4% per year. In 2019, agricultural investment grew 1.7%, lower than the figure for the economy as a whole (5.4%), maintaining the growth 5 Three-year averages were used to analyse this evolution. trend seen since 2013. Attention should be drawn to the fact that in recent years purchases of fixed capital goods in farming have been replaced by the hiring of equipment and facilities, which is one of the reasons behind the large growth in purchases of other goods and services. In the 2010–2020 period, 5 agricultural output meas- ured at basic prices grew in volume (1.9% per year) and, more noticeably, in value (2.9% per year) due to price evolution (1% per year). Decisive to this rise in volume, on the crop production side, was growth in fruit production (up 5% per year), the largest com- ponent of agricultural production (20.5%), in vege- tables and horticultural products (up 1% per year) and in wine (up 1.4% per year), while on the animal production side, it was pig production (up 2.5% per year) and poultry (up 2.3% per year). It should also be noted that the production of fodder plants (-0.9% per year) and cattle (-2.6% per year) made a negative contribution to agricultural produc- tion in volume. Also notable was the growth in cere- als in volume (3.6% per year) due above all to higher maize production (1.3% per year). Albeit less impor- tant to the structure of production, the increased output in value of olive oil (2.2% per year), industrial crops (4.6% per year), other plant products (5.1% per year), sheep and goat rearing (2.3% per year), and other animal products (2.3% per year), which have gained greater weight in Portuguese agricultural output, also stands out.