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Self-assessment: Potential for positive business development

In the current survey by Agrifuture Insights from the winter of 2022/23, agricultural businesses were asked about the greatest success factors for asset protection or business and asset development in the current times of upheaval.

Chart of the Month

Self-assessment of the economic situation of agricultural enterprises in Germany

In particular, arable farmers (66%) see the greatest potential for positive business development in production optimisation and further increases in efficiency. In an environment of multiple crises, this continues to be the top entrepreneurial maxim. Drivers here are external factors such as the Ukraine war, African swine fever, the availability of inputs and the political framework conditions. On the other hand, intrinsic motivations such as cost optimisation, reduction of inputs, climate/weather changes or phytosanitary effects also have an impact.

From the respondents' point of view, production optimisation in the direction of more animal welfare or environmental protection offers significantly less potential for their business development. Although these optimisations are demanded by politicians and consumers, there is a lack of planning certainty and financial incentives, so that additional effort and necessary investments remain without guaranteed compensation.

50 % of dairy farmers, but also 43 % of arable farmers, see the expansion and conversion at the current location as a success factor. The same applies to 44 % of the pig farmers surveyed who, despite the currently difficult framework conditions, especially for the finishing industry, continue to see prospects for their farm through further development at their current location.

In view of the energy crisis and climate change, renewable energies are more topical than ever. Therefore, almost 50 % of the participants also see a success factor for the development of the business and assets in the area of energy production.

DLG-Agrifuture Insights – a comprehensive view on agricultural development

DLG-Agrifuture Insights is the DLG knowledge brand and platform for international trend analyses in the agricultural sector. It examines the business environment in agriculture through a global panel of over 4,000 participants. Every month, Agrifuture Insights publishes a "Chart of the Month" from its extensive range of development trends in international agricultural markets.