Scottish farm business income: annual estimates 2020-2021

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