Economic Report on Scottish Agriculture 2011 Edition

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Cereals

There was a large decrease of £25,127 (60 per cent) in the FBI of Cereal farms, from £41,817 in 2008/09 to £16,690 in 2009/10. This was the result of a £20,320 (14 per cent) fall in outputs and a £8,572 (17 per cent) increase in total inputs. These were partially offset by a £3,690 (9 per cent) increase in grants and subsidies.

The decrease in total output was due primarily to a decrease in cereal output. Although the average area of cereals for farms in the survey increased by 3 per cent, cereal output fell by £15,888 (18 per cent) from £89,905 in 2008/09 to £74,017 in 2009/10. This fall in cereal output reflects the drop in cereal prices between the two years. The total livestock output of cereal farms decreased by £4,318 from £23,718 in 2008/09 to £19,400 in 2009/10, despite firmer prices for cattle and sheep in 2009/10. Part of the reason for this is a decrease in the number of cattle held on farms in the sample.

Total grants and subsidies increased by £3,690 (9 per cent) from £39,826 in 2008/09 to £43,516 in 2009/10. This was due to the increase in SFP of £3,994 being slightly offset by small reductions in other direct payments.

Over half of the increase in input costs was due to increases in fertilisers which increased by £4,277 (19 per cent) from £22,704 in 2008/09 to £26,982 in 2009/10. Most of the rest of the increase was due to increases in machinery depreciation which increased by £3,615 (17 per cent) and Land and Building costs which increased by 1,409 (9 per cent).

Income from diversified activities was relatively stable at £5,500 in 2009/10, compared to £5,426 in 2008/09. There were slightly more specialist cereal farms in the survey recording an income from diversified activity but the average income from these activities was lower than the previous year. Further details are provided later in a separate section on diversification.

Chart B4(e): Selected outputs and inputs, Cereals

Chart B4(e): Selected outputs and inputs, Cereals

Table B4(e): Average cropping and stocking, output, inputs, and Farm Business Income by type of farm

Type of farm: Cereals

Small

Medium

Large

All Sizes

Number of farms in sample

51

46

13

15

17

16

81

77

2008-09

2009-10

2008-09

2009-10

2008-09

2009-10

2008-09

2009-10

Average size of business ( SLR)

1.2

1.2

2.5

2.4

3.8

3.9

1.7

1.7

Average size of farm (hectares)

118

116

208

216

323

334

155

156

Area of Cereals (hectares)

76

77

132

146

217

220

101

104

Number of ewes

14

16

4

23

50

35

18

19

Number of suckler cows

2

1

13

7

15

21

5

45

Number of other cattle

27

25

75

57

121

134

450

42

Average output £ per farm

Crops: Cereals

69,069

53,603

99,441

99,011

203,102

170,809

89,905

74,017

Potatoes

971

780

1,624

2,752

9,189

7,129

2,095

1,818

Other crops

15,517

15,779

37,061

23,023

27,058

42,704

19,710

20,026

Total crop output

85,557

70,161

138,126

124,785

239,349

220,642

111,710

95,861

Livestock: Cattle

11,594

8,935

35,899

20,301

57,121

55,927

20,444

16,170

Sheep

2,191

2,786

5,645

4,077

6,929

4,811

3,230

3,209

Pigs

0

0

0

0

0

0

0

0

Poultry

70

27

0

0

0

0

52

20

Milk

0

0

0

0

0

0

0

0

Other livestock

-12

0

0

2

11

7

-8

1

Total livestock output

13,843

11,747

41,544

24,380

64,061

60,745

23,718

19,400

Miscellaneous

14,444

11,441

8,812

17,219

20,740

29,155

14,528

14,376

Total Output

113,844

93,350

188,482

166,384

324,150

310,542

149,957

129,637

Subsidy and Payments

29,127

31,526

54,986

59,534

87,687

98,821

39,826

43,516

(of which LFASS)

(39)

(35)

(00)

(00)

(550)

(610)

(99)

(99)

(of which SFP)

(26,599)

(29,292)

(51,922)

(56,091)

(81,040)

(93,156)

(36,708)

(40,701)

Average inputs - £ per farm

Feed

4,157

4,667

9,366

8,277

23,731

25,606

7,298

7,689

(of which home produced)

(2359)

(2643)

(4,794)

(5,579)

(7,874)

(4,744)

(3,366)

(3,303)

Other livestock expenses

1,716

1,560

4,743

2,814

8,154

9,549

2,916

2,696

Seeds

6,154

5,500

9,593

11,105

16,535

17,736

7,906

7,752

(of which home grown)

(902)

(422)

(2119)

(1491)

(4388)

(3023)

(1498)

(883)

Fertilisers

16,183

19,707

29,939

39,842

53,884

56,915

22,704

26,982

Other crop expenses

11,842

11,307

20,631

20,634

40,813

38,476

16,628

15,873

Labour

6,458

6,364

14,186

17,565

36,173

37,282

11,203

11,641

Machinery costs and fuel

24,652

23,460

40,984

40,461

65,429

67,103

31,889

31,074

Machinery depreciation

17,536

19,234

21,228

29,553

40,641

51,469

20,932

24,547

Land and building costs

12,625

13,532

21,240

22,196

34,551

39,867

16,496

17,905

Miscellaneous

13,001

12,708

17,948

18,715

27,136

31,504

15,420

15,805

Total average inputs

114,324

118,038

189,856

211,162

347,047

375,506

153,391

161,963

Diversification Margin

3,465

3,922

7,297

8,340

15,104

11,941

5,426

5,501

of which: Diversification Output

5,038

8,928

50,653

40,414

18,078

16,727

12,472

14,239

Diversification Input

1,573

5,006

43,357

32,074

2,974

4,786

7,046

8,738

FARM BUSINESS INCOME

32,111

10,759

60,908

23,096

79,894

45,798

41,817

16,690

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