Economic Report on Scottish Agriculture 2015

5.7 Mixed farms FBI (Table B1)

Accounting for inflation, between 2009-10 and 2013-14 the average FBI of mixed farms decreased by around 24 per cent. This was due to an increase in the input costs for crop, livestock and machinery, land and buildings.

In the last year both input costs and output values for mixed farms have decreased, resulting in an overall decline in FBI value for 2013-14. The average value of grants and subsidies decreased (down £2,000) to leave the FBI value of mixed farms at £30,000. The total average outputs, (including income from diversification and grants and subsidies) and inputs for mixed farms were £275,000 and £245,000 respectively. The largest portion of the input costs was due to other inputs such as machinery, land and buildings.

Over the last five years, FBI without subsidies has been below zero, with the exception of 2010-11 when FBI without subsidies was £96. In other years it ranges from -£23,000 in 2013-14 to -£7,000 in 2011-12.

The average FBI/FTE for mixed farms of £18,000 is equivalent to an hourly wage for unpaid labour of £9.31, around one and a half times the minimum agricultural wage in Scotland. Approximately a third of farms (30 per cent) generated an FBI/FTE equivalent to at least twice the minimum agricultural wage per hour of unpaid labour. At the top end, four per cent generated more than five times the minimum agricultural wage, that is, greater than £33.40 per hour of unpaid labour. In contrast, 39 per cent of mixed farms generated incomes equivalent to less than the minimum agricultural wage. 

Cost centre analysis for mixed farms show an overall decrease in income as part of agricultural and environmental activities, diversification and subsidies compared to 2012-13, an increase was observed for contracting activities in 2013-14.

The average net worth of mixed farms of all tenures was £1,719,000; from £359,000 for tenanted farms, to £1,573,000 for mixed tenure farms and £2,053,000 for owner occupied farms. The average debt ratio (liabilities: assets) was 11 per cent for all tenures of mixed farms but ranged between nine per cent for owner-occupied farms and 19 per cent for tenanted farms.

Mixed Farms