Income situation of agricultural households of EU countries

Abstract

One of objectives of the Common Agricultural Policy is to ensure an appropriate living standard for agricultural households. The paper uses EU-Statistics on Income and Living Conditions (EU-SILC) data to assess the income situation and living conditions of agricultural households. The agricultural household income does not reach the average household income in any of the EU countries. Multidimensional cluster analysis is applied to classify EU countries according to the income situation of agricultural households. The cluster analysis revealed five segments and the fact that living conditions at a satisfactory level can be achieved irrespective of the economic status of the agricultural household, although it depends on an appropriate setting of agricultural policy. The index of living conditions is constructed and used for the comparison. Based on the analysis results, the variables included in the assessment of the living standard of agricultural households should be taken into account when fulfilling the objectives of the Common Agricultural Policy, especially the part that relates to improving the living conditions of agricultural households. The current EU-SILC database is appropriate for the evaluation of the household income situation. However, it does not reflect the specifics of agricultural households, so additional measurement is needed.