This report provides an overview of key economic developments in European agricultural holdings based on 2012 data, the latest available in the Farm Accountancy Data Network (FADN). The FADN survey represents farms that account for the majority of EU agricultural production. After the sharp decline in farm income in 2009, recovery started in 2010 and continued in 2012. Overall, income slightly increased due to higher agricultural producer prices and an increase in the value of agricultural output. The latter is mostly linked to the performance of animal output (+3.1%) and to a lesser extent to that of crop production (+1.4 %). However, significant income differences were observed across European regions as well as across different types of farming. Despite the high input prices such as the cost of animal feed and energy in 2012, farms specialised in granivores (pigs and poultry) and field crop farms generated the highest income per person. From 2011 to 2012, income per person increased for farms specialised in field crops, granivores, horticulture and other permanent crops, and for mixed farms (mainly due to higher producer prices and volumes in animal and crop production in 2012). It decreased for farms specialised in wine, grazing livestock and for dairy farms. The latter two are due to the decrease of producer prices for milk and the decrease in sheep meat production.