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COVID-19 leaves limited traces in preliminary 2020 agricultural accounts

Eurostat has now published its preliminary estimates for the economic accounts for agriculture in the EU for 2020. This gives us the first authoritative overview of the impact of the COVID-19 pandemic on agricultural markets and farm incomes in what has been an extraordinary year. Until now, information on monthly trends in agricultural prices and agricultural trade has given us some partial insights into the impact of COVID-19 on the agricultural sector. Despite wobbles in some sectors, by and large these indicators show that the agricultural sector has been remarkably resilient. Despite this, significant aid packages have been made available to farmers by EU Member States.… Read the rest

Eurostat publishes preliminary 2019 farm output and income data

Eurostat has now published preliminary estimates of 2019 agricultural output and income. The value of agricultural output in current prices shows a small further increase in 2019 as compared to 2018. Compared to the previous peak in 2013, agricultural output value has grown by just under 4% in the past six years. This is mainly due to an increase in the value of crop output, with the increase in the value of livestock output lagging behind. However, because of greater spending on intermediate consumption, gross value added in agriculture remains just below the record 2017 level.

Operating surplus (the return to land, capital and family labour) also increased compared to 2018 but is still well below the record 2017 level.… Read the rest

Long-run perspective on EU agricultural output growth and GHG emissions

The extent to which agricultural growth can take place while at the same time reducing agricultural greenhouse gas (GHG) emissions is much debated. There is a widespread view, reflected in the agricultural mitigation chapter of the IPCC’s Fifth Assessment Report in 2014, that changes in food consumption patterns will be necessary if GHG emissions from global agricultural production are to fall sufficiently to help to stabilise the climate by 2050. The diet changes proposed, including a shift away from meat and dairy product consumption, would deliver emissions reductions by reducing agricultural production. Others point instead to the potential of technological advances to reconcile increased agricultural output with lower emissions, effectively allowing the decoupling of emissions growth from agricultural growth.… Read the rest