Economic Report on Scottish Agriculture 2015

4.4 General cropping farms FBI (Table B1)

Accounting for inflation, between 2009-10 and 2013-14 the average FBI of general cropping farms increased by around 33 per cent. This was due to an increase in the output value of crops and fall in the crop and labour input costs.

In the last year both input and output values for general cropping farms have decreased, this combined with an average decrease in the value of grants and subsidies (down £3,000) has resulted in an overall decrease in income for 2013-14 to leave the FBI value of general cropping farms at £36,000. The total average outputs, (including income from diversification and grants and subsidies) and inputs for general cropping farms were £267,000 and £231,000 respectively. The largest portion of the input costs was due to fertiliser and other inputs such as machinery, land and buildings.

Over the last five years, FBI without subsidies has been below zero twice, ranging from -£21,000 in 2009-10 to £28,000 in 2010-11. In 2013-14 the average FBI without subsidies of general cropping farms was -£900.

The average FBI/FTE for general cropping farms of £26,000 is roughly equivalent to an hourly wage for unpaid labour of £13.81, equivalent to almost twice the minimum agricultural wage in Scotland. Approximately 46 per cent of farms generated an FBI/FTE equivalent to at least twice the minimum agricultural wage per hour of unpaid labour. At the top end, nine per cent generated between five and ten times the minimum agricultural wage, that is, between £33.40 and £68.90 per hour of unpaid labour and six per cent generated more. In contrast, 40 per cent of general cropping farms generated incomes equivalent to less than the minimum agricultural wage.

Cost centre analysis for general cropping farms show an overall decrease in income as part of agricultural and environmental activities as well as contracting and subsidies compared to 2012-13. Income from diversification increased in 2013-14.

The average net worth of general cropping farms of all tenures was £1,922,000; from £232,000 for tenanted farms, to £2,244,000 for owner occupied farms and £2,492,000 for mixed tenure farms. The average debt ratio (liabilities: assets) was seven per cent for all tenures of general cropping farms but ranged between six per cent for owner-occupied and 25 per cent for tenanted farms.

General Cropping Farms