This is the 30th annual situation report. Areas examined include the economic situation and farm incomes; policy developments and legislative initiatives; agricultural markets; agrimonetary arrangements; rural development (with sections on all member countries); environment and forestry; the financing of the Common Agricultural Policy in 2004; enlargement; and international relations. The 2004 agricultural year was marked by an increase in crop production and a recovery or a stabilisation of production for livestock products. Farm incomes for the EU as a whole rose by +3.3 per cent in real terms, though this figure masks a range from -11.5 per cent for the Netherlands to +107.8 per cent for the Czech Republic.