Scottish farm business income: annual estimates 2021-2022

Key findings:

• Average farm income has risen to the highest level since 2012, after adjusting for inflation. Average farm income, a measure of farm profit after costs, is estimated to be £50,000 in 2021-22. This is an increase of over £11,000 on the previous year. 
• The analysis indicates that the upturn in income is mostly due to increased total output. This upturn is against the backdrop of the COVID‑19 pandemic and the UK leaving the European Union.
• Total output (including agricultural output, income from support payments and diversified activities) increased by 9% to £275,200. Agricultural output increased 10%, reflecting strong wholesale prices in 2021-22 across a number of agricultural products, including cereal, milk and livestock.
• Total input costs increased 6% to £225,200 for the average farm. Increased input costs this year follow a dip in the previous year. This returns to the trend of steadily increasing input costs seen across recent years which have reflected industry wide cost pressures. However, the results presented here do not reflect more recent price volatility.
• In particular, commercial dairy farms had a good year, driven mainly by increased milk prices. Average income was estimated at £162,100, the highest value since 2012. Average cereal farm income also reached a record high, driven by high wheat and barley output.
• For the first time in at least ten years, the average farm would have been profitable without support. Without support payments the average farm business made a profit of £5,100 from agricultural, contracting and diversified activities. This was mostly driven by increases in income in dairy and arable farms.

Our infographic provides an overview of farm incomes in 2021-22.

All data tables are available to download under supporting documents.

This report provides estimates of Farm business income (FBI), or farm income, for the accounting year 2021-22, which relates to the 2021 crop year. FBI is the total income available to the people who draw money from the farm business, usually the owners or partners who are not paid a regular wage. Figures are adjusted for inflation.

This analysis is based on a survey of around 400 commercial farms (whose standard output exceeds around £20,000). The sample excludes farm types not in receipt of support payments (such as pigs, poultry and horticulture). The survey sample is weighted using results from the 2021 June Agricultural Census and is representative of 95% of the standard output from farm types included in the survey.