Scottish farm business income: annual estimates 2019-2020

Glossary

Debt ratio – can explain how much of a businesses assets are financed by debt

Diversified activities – non-agricultural activities that use farm resources

Farm Business Income (FBI) – the total income available to all unpaid labour and their capital invested in the business. 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

Minimum Agricultural Wage (MAW) – is set by the Scottish Agricultural Wages Board each year. For this analysis an average MAW is used to cover the years included in the Farm Business Survey

Off-farm income – income from activities not related to the farm business or farm diversification, such as a income from another family member's employment

Standard output – estimated worth of crops and livestock