Total return on equity and hourly earnings in agricultural production
Total return on equity has been negative nearly throughout the 2000s. According to Luke's profitability accounting results, total return on equity was also negative in 2020 (-0.6%).
The average of the hourly earnings in agricultural production over ten years 2011-2020 were approximately EUR 1.9. In 2020, the hourly earnings of agricultural entrepreneurs were EUR 4.6.
Description of the indicator
The indicator of total return on equity helps to compare competitiveness and profitability. The figure indicates how high returns have been received on capital tied to business activities during the financial period.
Earnings comprise compensation for work performed by the entrepreneur family. It is calculated by deducting interest on equity from entrepreneurial income. Hourly earnings are calculated by dividing earnings by the number of working hours. This concept of income can be used when comparing agricultural entrepreneurial income with wage-earners' income. However, it should be noted that returns on equity have already been received in accordance with the calculated interest requirement.
Indicator data is obtained from Luke's agricultural profitability accounting results.
This is one of the national impact indicators of the 2014–2020 Rural Development Programme for Mainland Finland.
The indicator will next be updated in spring 2023.