Hill, Upland and Crofting Farmer-led Group: climate change evidence

Annex A – Definitions and Classifications of Farms

Definitions

Farm Business Income (FBI)

The total income available to all unpaid labour (farmers and spouses, non-principal partners and directors and their spouses and family workers) and on their capital invested in the farm business, including land and buildings. Income from diversified activities are included in overall FBI.

Farm types

Farms are classified based on the how much of their standard output is from the crop and livestock enterprises on each farm.

Less Favoured Area (LFA)

Land where farming is more difficult due to natural constraints, such as hills and soil quality.

Standard Output

The standard output of an enterprise is an estimate of the average output value for every unit of production. It is defined as the estimated worth of crops and livestock without taking into account the costs incurred in the process.

Classification of Farms

The classification is based on detailed sub-types as defined in the European Commission (EC) farm typology 2, which have been grouped together where required to give the types shown below. The classification is based on the relative importance of the various crop and livestock enterprises on each farm assessed in terms of standard output. The method of classifying each farm is to multiply the area of each crop (other than forage) and the average number of each category of livestock by the appropriate standard output, with the largest source of output determining the type of farm. The list below defines the main types that are reported in the Farm Business Survey.

• Specialist Sheep (LFA) - Farms in the less-favoured areas with more than two thirds of the total standard output coming from sheep.
• Specialist Beef (LFA) - Farms in the less-favoured areas with more than two thirds of the total standard output coming from cattle.
• Cattle and Sheep (LFA) - Farms in the less-favoured areas with more than two thirds of the total standard output coming from sheep and beef cattle together.
• Cereals - Farms where more than two-thirds of the total standard output comes from cereals and oilseeds.
• General Cropping - Other farms where more than two-thirds of the total standard output comes from all crops.
• Dairy- Farms where more than two-thirds of the total standard output comes from dairy cows.
• Lowground Cattle and Sheep - Farms not in the less-favoured areas with more than two-thirds of the total standard output coming from sheep and beef cattle.
• Mixed - Farms where no enterprise contributes more than two-thirds of the total standard output.