Scottish farm business income: annual estimates 2020-2021

Farms in Less Favoured Areas (LFA) have lower incomes and are more reliant on support

LFA land is low quality and often very hilly, mostly found in very remote areas. There is less opportunity to do anything else with the land which makes it difficult to do any other activities.

LFA livestock farms have low but stable incomes compared to other farm types.

Increased livestock output mainly drove small increases in income for LFA livestock farms in 2020-21.

On average, LFA cattle farm income was £23,000 in 2020-21. This is just above the five year average, following two years of low income. LFA combined cattle and sheep farms had an average income of £28,800 - an increase on the previous year, but remaining below average.

Increased output was not enough to offset increased costs for LFA sheep farms. They had the lowest average income by farm type in 2020-21 at £9,600.

Support payments are a key source of revenue for a large number of LFA farms. Current support payments are intended to allow farms to remain in business and be an active part of their local community.