- The relationship of wheat prices to wages is the worst in the whole XXI century.
- Valuations of agricultural crops, in this wheat, does not stay behind wages.
Wheat indicator of the power of the farmer
We have already addressed the relationship of minimum and average wages in the domestic economy to wheat prices. It is an important aspect, because in a major degree it shows the value of the farmer sold to level wages. And through this shows also in a large degree the purchasing power of the farmer. This time we have expanded our statement – in the statement present not only data from last years, but over the whole XXI century. Under attention was taken to average wheat prices according to GUS in the 2 half of each year, minimum and average wages. Of course all these indicators have some advantages. Generally only the so-called lowest nation is a value from up only, while average wages and average wages are already statistical data. Not on the tle year all this data collected together gives already a bright picture of the situation. They show the real value of the commodity sold by the farmer. In this statement this value measured is wheat not by accident. It has for many years already being the first place in the seed structure in Poland, a in additional basic cereal, which is a size for other commodities. If wheat is expensive, then and other cereals are priced lowly, including commodities. Wheat is therefore a secure “litmus paper”, which allows you to visualize the market situation.
Such setting answers also in a large measure to the question: why is so bad, why is so good? After all the prices are increasing, they are higher than before years ago. Yes, they are increasing, but the present level of prices was already
in the market
present 10 – 15 years ago. Higher prices than today we had for example, in 2012 year, a approximate in
2007. In that time the minimum wage rose significantly, and the value of goods from the farmer declined. But after the country.
How many tons of wheat balances minimum and average wages.average remuneration. Produced by: Karol Bogacz
In the two-thousandth year the almost best in the whole period
The last year of the century in our statement is only almost the best season. Why?” Then the minimum wage was 700 PLN. Note that the average wage was calculated at 1923 PLN. With pricing of wheat at level 499 zl/t it was enough 1.4 t to balance the lowest national and 3.9 t on average wage. In the whole period studied it was in the two-thousandth year the purchasing power of wheat was the highest. These data let’s set with estimates, which may apply this year. May, because by how much the
minimum wage for this year we already know, this average is estimated, a price of wheat has been
assumed as the average of some purchasing points in the first week of January. Nevertheless in such
arrangement a quarter of a century to balance the minimum wage was 1.4 t of wheat, a now 5.6 t. From the current current current price of wheat it takes even over 10 t of grain, to balance the estimated average wage.
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There have been years better and worse, but have always been better than now?
In the studied period there were growths in price, which were a strong reaction to the market situation. Such was for e.g. in 2012 year. Then there were freezing cereals on a mighty scale. The average price of wheat then was 924 zł/t. So that 13 years ago wheat was more expensive than today. On the other hand in 2007 year the average price was 740 zł/t. Then in the harvest 2024 we know, that in many places in the country wheat was sold even under 700 zł/t…. Then, in 2007 year, already 1.3 t of wheat was being equal to the lowest national, a a average wage worth as much as 3.6 t of wheat. Today such values are already unattainable.
See here ,That for the first so dramatically low value of wheat in relative to prices in the domestic economy, in
this minimum and
average wages, were observed in 2023 year. For the first time to balance the minimum wage there were
as much as 4 tons of wheat (and 8 tons for average wage).
In 2024 year that is already 5.3 t. And in this year, as then according to estimates,
at the current price, by 3 dt more. The buying power of wheat, a which is behind
practically all the major agricultural crop, has never been so low. On the lower chart we notice a very unfavorable trend in this range, where wheat still is losing, absolutely not tracking for pay.
How many tons of wheat equals minimum and average wages. Drafted by: Karol Bogacz 
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Since 2012 year real value of wheat is falling
Minimum wages were equivalent to 2 tons of wheat or less in the following years in the study period: 2000, 2001, 2002, 2003, 2004, 2006, 2007, 2010, 2011, 2012, 2022. From 2012 year almost all time the so-called lowest national rate rose faster relative to wheat prices. The exception was 2022 year, when that 2 tons of grain balanced the minimum wage. But that is also often said that that was that year excellent under prices. How has however been – excellent on the tle last years. Then it was already only significantly worse, and earlier the purchasing power of wheat differed from that, what we observed in the first decade of the XXI century. This 2022 year, though good, it has only had the highest costs.in history.
Lowest national over 500 percent in growth, wheat of just 60 percent….
If we wanted percent increases in years 2000 – 2025 then the data would be disproportionate for agricultural farm crops. Minimum wages from two-thousand years have increased by 566 proc. Wheat also has increased in price, yes. But only by slightly over 60 proc. that is the basic commodity sold by the farmer, the only most commercial cereal, a primary in the context of food security, there is no card for in the relationship to wages in the economy.
A quarter of a century this annual wage (minimum wage) is 8400 PLN. This is is equivalent to 16.83 t wheat. In 2010 year the annual total minimum pay was at 15804 £, which was equivalent to 23.3 t of wheat. From the course in 2020 year the minimum annual remuneration was at a total of 31200 £ (equivalent slightly to over 42 t of wheat). Counting the last year, before the increase minimum rate, this is 51 thousand £ (over 63 tons of wheat). The conclusion is that to balance the minimum remuneration it needs to sell over 260 proc. more tar than 25 years ago. A we are talking about income, not about net income. It, how much de facto remains from production, it already different issues.
Of course, farms at this time have become significantly larger. There is no chance, to “live” off 10
hectares of standard production. The problem in that significantly increasing your are not earning more. Many
farmers clearly say, that even 50 hectares and more do not guarantee better financial results than
when they started with 10 hectares. This alsoincertaindegreeanswersthequestion,whythelandhascontinuedbuyers,despitethatthelastyearsforagriculturearefatal.Withcurrent ratesforagriculturalproducts onehasto producemore andmore,in orderto catch upwithpricesinthedomestic economy.
Inthistimetherewerefewerormoreprofitable.Notnowallthemaincommoditycropshavelostrealvalue.Untilthistimethereliableindicatorofprofitabilitywasbeetsugar.Butatthistimeandthatcropwillbalanceontheborderofprofitability.Andwheat?Ifminimumwagesweretobebalancedby2tonsof wheat(that isandyesmorethaninthefirstdecadeoftheXXIcentury),thatwouldhaveto costabout2300zł/t…
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