Farm Incomes in Scotland 2007-08
Scotland's Chief Statistician today published analysis and detail of headline farm income statistics previously released on 29th January 2009.
Farm Incomes in Scotland 2007-08 contains a detailed analysis of Net Farm Income and other financial statistics relating to the 2007-08 agricultural year. This information is collected from 442 farms participating in the Farm Accounts Survey, 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 per farm, for 2007-08 show that:
- Overall, Net Farm Income (NFI) increased by £10,042 to £29,828 with increases in outputs far greater than corresponding increases in inputs. The main contributors to the increase in outputs were Cereals (up £10,703) and Milk (up £3,394). On the input side, the largest increases were for Animal Feed (up £3,414) and Machinery (up £1,369)
- The average value of subsidy and payments was £41,182 per farm, accounting for 27 per cent of total farm output. This ranged from 11 per cent for Dairy farms to 53 per cent for LFA Sheep farms.
- Around 18 per cent of farms overall had a negative NFI, which ranged by farm type from 7.1 per cent for General Cropping farms and 7.8 per cent for Cereal farms to 25.9 per cent for LFA Cattle and Sheep farms.
- The average value of tenant-type capital investment was £159,413 per farm, with the greatest investment in Machinery (£57,902) followed by Breeding Livestock (£42,114) and Trading Livestock (£36,915).
- Overall, there was an 11 per cent increase in total assets to £740,645 while total external liabilities remained fairly stable at £84,165. This resulted in a 13 per cent increase in net worth from £583,177 in 2006-07 to £656,480 in 2007-08.
- NFI for the lowest performing quartile ranged from £17,417 for Mixed to £10,739 for Cereals farms. Conversely, NFI for the highest performing quartile ranged from £42,491 for Specialist Beef (LFA) to £144,884 for Dairy farms.
- Overall, the non-farming income of the farmer and spouse both on and off the farm averaged £12,000, ranging from £8,800 for Dairy farms to £15,200 for Cereal farms.
2008 Scottish Agriculture Output, Input and Income Statistics provides more detail about the Total Income From Farming (TIFF) statistics relating to the 2008 calendar year. It includes information on quantities and prices of agricultural outputs and inputs, more detail on grants and subsidies and several economic indicators.
An extract of the results contained in the publication is provided below:
- TIFF decreased in 2008 by £11.9 million (1.8 per cent) mainly due to the cost of inputs rising more than the value of outputs.
- During 2008, most sectors of agriculture observed decreases in production (the exceptions being wheat, calves, early potatoes and eggs for food). Milk production decreased by 139 million litres (11 per cent), poultrymeat production was down 16,000 tonnes (16 per cent), beef production was down 13,000 tonnes (7 per cent) and potatoes decreased by 67,000 tonnes (5 per cent).
- Estimated aggregate prices in 2008 for agricultural commodities generally increased (with the exception of prices for barley, oats, maincrop ware potatoes and sows and boars). Milk prices increased by 5.47 pence per litre (27 per cent), poultrymeat prices were up 19.75 pence per kilogram (24 per cent), and wheat prices increased by £21.41 per tonne (18 per cent). Maincrop ware potato prices decreased by £25.27 per tonne (14 per cent).
- Capital investment in agriculture increased by £20.3 million (11.5 per cent) in 2008, mainly due to increases in expenditure on 'buildings & works' and 'plant & machinery'.
- TIFF per annual work unit (AWU) of those with an entrepreneurial interest in agriculture, increased in 2008 from £23,152 to £24,585, as there was a greater decrease in annual work units (7.6 per cent) compared to the overall decrease in TIFF (1.8 per cent). This measure does not relate to hired labour.
- This is also reflected in the productivity measure (index of final output per unit of all inputs) which showed an increase of 3 per cent in 2008, primarily due to the decrease in annual work units (AWU's) mentioned above.