agreste

Agreste cahiers n° 46 - décembre 1999

Among « small » independant businesses people - merchants, craftsmen, industrialists or members of the professions -, farmers characteristically possess a large capital base, constituted in large part of tangible fixed assets.

Among « small » independant businesses people - merchants, craftsmen, industrialists or members of the professions -, farmers characteristically possess a large capital base, constituted in large part of tangible fixed assets. In this respect small road haulage contractors are closest to farmers. However their average assets are only half those of farmers, while their turnover and added value is twice as large. Land, often retained in the private wealth of farmers, counts for little on farm balance sheets. But agricultural equipment and livestock constitute heavy investments compared to the added value that they yield : capital productivity is three times less in farming. Payroll costs, much heavier for road haulage contractors, and the large contribution of subsidies specific to agriculture combine to give farmers a gross profit that is double that of road haulage contractors. It is indeed the nature of the business that explains these differences between farmers and road haulage contractors. The inherent characteristics of the business units, such as legal status or turnover, have little influence on their accounts.