Scottish farm business income: annual estimates 2019-2020

Fewer farmers could afford to pay themselves the minimum agricultural wage

Farm Business Income estimates the earnings of the people who will draw money from the income of the farm business, usually the owners or partners. This is called unpaid labour as they do not get paid a regular wage.

There was a decrease in the percentage of farms that could pay unpaid labour more than minimum agricultural wage (MAW) in 2019-20.

In 2019-20, 48 per cent of farms could afford to pay at least the minimum agricultural wage (MAW, £8.12 per hour) for unpaid labour. Around six per cent of farms could afford to pay unpaid labour over £40 per hour.

Farms that can afford higher wages may invest their drawings back into their business.

Around 52 per cent of farms could not afford to pay at least the MAW, with around 29 per cent unable to provide any earnings to unpaid labour from farm income.

Some farmers earn money elsewhere, for example from activities that happen off the farm. In 2019-20 the average off-farm income per full time worker was around £7,900.