Scottish farm business income: annual estimates 2019-2020

LFA sheep farms have low incomes and rely on support

LFA sheep and LFA beef farms have been grouped together because they have low but stable incomes. LFA land is low quality and often very hilly. There is little opportunity to do anything else with the land which makes it difficult to do any other activities.

£11,300 - LFA Sheep farms average income

Sheep farms and beef farms in less favoured areas (LFA) have low incomes that have been historically low compared to other farm types.

Support payments play an important role for a large number of LFA farms. For example, in 2019-20 LFA sheep farms would on average be making a loss of £37,600 without support. Only 11% of LFA sheep farms made a profit in 2019-20 without support payments.

These farms are mostly found in very remote areas. Current support payments are intended to allow farms to remain in business and be an active part of their local community.