Swedish Farmers Face Economic Strains Despite Record Grain Harvests, Call for Political Support

Sweden's agriculture sector is grappling with economic pressures despite achieving a record grain harvest of 6.3 million tons in 2023, the largest in several years according to the Swedish Board of Agriculture. However, the favorable yields have not translated into profitability for farmers due to a 15% decline in grain prices combined with high input costs, including fertilizers and plant protection products. The Lantbrukarnas Riksförbund (LRF) analysis highlights that farmers continue to suffer negative profit margins, reflecting a concerning economic situation that is expected to persist into 2026, partly due to new costs such as the EU's carbon border adjustment mechanism (CBAM) affecting mineral fertilizers.

Malin Hagbardsson, industry manager for LRF Växtodling, emphasizes that agricultural profitability has been volatile in recent years, heavily influenced by global uncertainties and political decisions. She states, “Although this year's harvests have been good, low grain prices mean profitability is still weak, heavily influenced by political decisions. We need long-term conditions that allow for climate adaptation, investment, and sustainable production.”

The challenges faced by farmers coincide with broader national concerns about food security, climate resilience, and increasing domestic food production. With Sweden currently meeting only about half of its food demand through domestic production, the Swedish food strategy and LRF reports indicate potential to increase food production by up to 40% and contribute over 50 TWh of renewable energy, which could significantly enhance national energy and food security while creating rural jobs.

To unlock this potential, political support is crucial. LRF calls for investments to improve competitiveness, such as reducing fertilizer tariffs, postponing CBAM for fertilizers pending impact assessments, enhancing compensation related to the ETS 2 emissions trading system, ensuring reliable access to plant protection products, and better wildlife management to reduce crop damage. These measures are vital to supporting sustainable farming and preparing Swedish agriculture for climate challenges.

As Sweden approaches the 2026 elections, there is a clear call from the agricultural sector for policymakers to provide the right conditions that enable farmers to produce more effectively and sustainably, reinforcing food security and the rural economy. The sector stresses the importance of viewing these initiatives not as costs but as essential investments for Sweden's future resilience and stability.