AGRICULTURAL INCOME
The Scottish Government calculate two measures of agricultural income. Total Income from Farming ( TIFF) assesses the income generated by Scottish agriculture as a whole and Farm Business Income ( FBI) that compares income between different types of farm enterprise.
AGRICULTURAL INCOME AT SCOTLAND LEVEL ( TIFF)
Total Income from Farming ( TIFF) assesses Scottish agriculture as a whole and covers the calendar year. TIFF measures business profits plus income to workers with an entrepreneurial interest (farmers, partners, directors and their spouses, and most other family members who work on the farm).
Total Income From Farming (TIFF) increased by £23 million to £596 million between 2010 and 2011. This represents a rise of 4.1 per cent before inflation is accounted for but a fall of 1 per cent in real terms.
In 2011, there was a £338 million (13.9 per cent) increase in the value of agricultural outputs to £2.76 billion. There was a corresponding increase in input and other costs of £277 million (13.0 per cent) to £2.40 billion. Other changes include a £32 million (9.7 per cent) increase in consumption of fixed capital and a £5 million (0.8 per cent) decrease in payments and subsidies.
The details underpinning the increase in TIFF are available at the Total Income From Farming and Farm Business Income publication page and in the table of agricultural output, input costs and income 2007 to 2011.
CHART : TOTAL INCOME FROM FARMING ( TIFF) - 1973 - 2011
AGRICULTURAL INCOME BY FARM TYPE ( FBI)
Farm Business Income ( FBI) is closely aligned to the aggregate Total Income From Farming ( TIFF) measure and provides a sectoral breakdown of incomes by eight different farm types. FBI represents the return to all unpaid labour (farmer, spouse and others with a entrepreneurial interest in the farm business)and to their capital invested in the farm business. The FBI measure is designed to capture the return to the entire farm business and therefore also includes income from diversified activities on the farm.
Average Farm Business Income (FBI) in 2010/11 was £45,100, a increase of £10,900 (32 per cent) from 2009/10. Trends in FBI between 2009/10 and 2010/11 are most closely related to trends in TIFF between 2009 and 2010, which increased by 25 per cent.
There were increases in FBI between 2009/10 and 2010/11 for the following farm types; Dairy (up £14,779), Lowland Cattle and Sheep (up £2,200), Mixed (up £8,134), Cereals (up £34,571) and General Cropping (up £41,246); large increases in the FBI of both Cereal and General Cropping farms follow a steep fall in 2009/10 largely due to decreased value of cereal and potato outputs and increased fertiliser costs. FBI decreased for Specialist Beef LFA (down £5,357) and Cattle and Sheep LFA (down £1,602) and remained unchanged for Specialist Sheep (LFA).
Commentary : Farm Business Income (FBI)
A more detailed analysis of Farm Business Income for each of the farm types is available at the links below:
Section B of the Economic Report on Scottish Agriculture provides further analysis of Farm Business Income.
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