Scottish farm business income: annual estimates 2021-2022

Breakdown of farm income

Contributors to total average farm income can be summarised into income from:

• agricultural activity
• contracting activity
• diversified activity
• support payments

Figure 7: Breakdown of contributions to farm income by farm type, in 2021-22

Farms on average made a loss from agricultural activity of £5,500 in 2021‑22. This was a smaller loss than in 2020‑21, when the average loss from agricultural activity was £12,600.

Some farm types typically make a profit on average while others make a loss. In 2021‑22, livestock farm types made a loss from agricultural activity, while cereal, general cropping, dairy and mixed farms made a profit. LFA sheep farms made the largest average loss from agricultural activity in 2021‑22, of around £38,000.

Average incomes from support payments, contracting and diversified activities vary less than agricultural income by farm type. The average farm in 2021‑22 made a profit of £44,600 from support payments and grants, £5,000 from contract farming and £6,000 from diversified activities.