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Farm incomes in Scotland
30/04/2008
Scotland's Chief Statistician today published the 'Farm Incomes in Scotland 2006/07' publication.
Statistics were gathered from a sample of 458 farms, representing the largest 13,000 farms in Scotland, excluding the pig, poultry and horticulture sectors. An extract of the results contained in the publication is provided below.
Average figures for 2006/07 show that:-
- Overall, Net Farm Income (NFI) increased by £8,078 with increases in outputs far greater than corresponding increases in inputs. The main contributors to the increase in outputs were Cattle (up £4,335), Cereals (up £3,309) and Potatoes (up £3,140). On the input side, the largest increases were for Animal Feed (up £1,486) and Machinery (up £1,001).
- The average value of subsidy and payments was £38,400, accounting for 29 per cent of total farm outputs, ranging from 14 per cent for Dairy to 47 per cent for LFA Specialist Sheep farms.
- Around 23 per cent of farms had a negative NFI, with smaller farms (29 per cent) more likely than larger farms (18 per cent). A greater proportion of larger farms were in higher income ranges with 25 per cent with a NFI over £50,000, compared to 7 per cent of medium and 1 per cent of smaller farms.
- The average value of tenant-type capital investment was £150,454 per farm, with the greatest investment in Machinery (£54,063) followed by Breeding Livestock (£40,262) and Trading Livestock (£35,754).
- The average external liability was £83,925 per farm, which represents 12.7 per cent of average total assets of £658,238. External liabilities as a percentage of total assets ranged from 9.6 per cent for Specialist Sheep (LFA) to 22.2 per cent for Lowland Cattle and Sheep farms and from 12 per cent for owner-occupied farms to 19 per cent for tenanted farms.
- NFI for the lowest performing quartile across all farm types was negative. This ranged from -£15,547 for Specialist Sheep (LFA) to -£3,291 for Cereals. Conversely, NFI for the highest performing quartile ranged from £19,612 for Specialist Sheep (LFA) to £92,142 for Dairy farms.
- Overall, the non-farming income of the farmer and spouse both on and off the farm, averaged £10,316. Almost half of this income was earned from 'Off-farm Employment and Self-Employment' (48 per cent), with 'Off-farm Investments, Pensions and Other' accounting for 37 per cent and 'On-farm non-farming activities' 16 per cent. Non-farming income ranged by farm types from Dairy (£7,762) to Lowland Cattle and Sheep (£14,728). The highest level of non-farm income was for Small farms (£11,154), followed by Large (£9,674) and Medium (£8,867) farms.
The Farm Incomes in Scotland 2006/07 publication provides a detailed analysis of financial data from the 2006/07 Farm Accounts Survey and supplements previously published headline statistics of Net Farm Income, which were released on 31st January 2008.
This publication contains a detailed assessment of Net Farm Income and other economic measures by farm type, size and tenure, including distributions of income. It contains information on average levels of investment, assets, liabilities and flow of funds as well as levels of non-farming income.
Official statistics are produced by professionally independent statistical staff.