Scottish farm business income: annual estimates 2019-2020

Decreased income from agricultural activity

Farm incomes are summarised here into five main categories. Direct payments and agri-environment schemes are support payments made to farms. Contract farming is a joint venture between farmers. An example of this is machinery rings, where machinery and labour is shared between farms.

Farms on average made a loss from agricultural activity of £25,500, over twice the loss made in the previous year.

Agricultural output decreased by five per cent on average. Output value from potatoes and cereals decreased and affected some farm types more than others. Input costs also increased by two per cent overall.

Losses to the business were offset mainly by support payments. Direct payments to farmers continued to have the largest impact on overall farm income. Income from agri- environment schemes decreased 22 per cent compared to 2018-19.

Diversification and contract farming made the largest non-support payment contributions to farm business income in this year. There was a three per cent increase in income from contract farming. The income from diversified activities decreased four per cent.