Economic Report on Scottish Agriculture 2011 Edition

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Farm Business Income, Output and Subsidy & Payments

Table B3 and Chart B3 show how farm subsidy and payments relate to FBI and total output.

Table B3: Farm Business Income and Subsidy & Payments, by farm type

Farm Type

2008/09

2009/10

Farm Business Income

Subsidy & Payments

Subsidy & Payments as % of Output

Subsidy & Payments as % of FBI

Farm Business Income

Subsidy & Payments

Subsidy & Payments as % of Output

Subsidy & Payments as % of FBI

£/farm

£/farm

%

%

£/farm

£/farm

%

%

Specialist Sheep ( LFA)

16,268

29,911

45%

184%

29,907

37,737

43%

126%

Specialist Beef ( LFA)

26,923

48,937

39%

182%

38,335

53,029

38%

138%

Cattle and Sheep ( LFA)

27,896

58,189

39%

209%

44,390

66,207

40%

149%

Cereals

41,817

39,826

21%

95%

16,690

43,516

25%

261%

General Cropping

60,862

40,485

14%

67%

18,332

47,490

18%

259%

Dairy

78,446

36,123

10%

46%

58,746

43,081

13%

73%

Lowland Cattle and Sheep

23,969

36,306

29%

151%

30,294

42,684

32%

141%

Mixed

45,317

50,108

27%

111%

40,185

52,271

28%

130%

All

39,271

43,783

24%

111%

34,365

49,200

27%

143%

Chart B3: FBI and, Subsidies and Payments, 2009/10

Chart B3: FBI and, Subsidies and Payments, 2009/10

In 2009/10, overall subsidy and payments averaged £49,200 per farm, an increase of 12 per cent from £43,738 in 2008/09. This increase was due mainly to the favourable exchange rate in September 2009 compared to September 2008, when a large amount of subsidies are converted from euros into pounds. The subsidy and payments ranged from £37,737 for Specialist Sheep ( LFA) to £66,207 for Cattle and Sheep ( LFA) farms.

Overall, the level of subsidy and payments as a percentage of output increased from 24 per cent in 2008/09 to 27 per cent in 2009/10. In 2009/10, this ranged by farm type from 13 per cent for Dairy farms to 43 per cent for Specialist Sheep ( LFA) farms.

As a percentage of FBI, overall subsidy and payments were 143 per cent in 2009/10, compared to 111 per cent in 2008/09. Subsidy and payments were higher than FBI for all farm types, with the exception of Dairy farms. In other words, without subsidy and payments the average income for 7 out of the 8 farm types would have been negative. As a percentage of FBI, subsidy and payments were highest for Cereal farms (261 per cent) and General Cropping farms (259 per cent). Dairy farms were the only farm type where subsidy and payments were lower than FBI (73 per cent).

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