Scottish farm business income: annual estimates 2022-2023
Farm business level estimates of average incomes for 2022-2023. An Accredited Official Statistics publication for Scotland.
Dairy farm income continues to rise
Average income for dairy farms was £248,700 in 2022-23. This is the highest value in the time series and an increase of 42% from the previous year.
Figure 3: Average farm business income, dairy and all farms, 2012-13 to 2022-23. 2022-23 prices.
Agricultural output increased by 26%, which was largely driven by increases in both average milk prices and average yields. Outputs from milk and milk products rose by 26%, or £182,700. Other contributors to the rise in agricultural output were cattle and crop by-products, forage and cultivations. Cattle output increased by £19,200, or 17%, whilst crop by-products, forage and cultivations rose by 234%, or £13,100.
Higher agricultural outputs more than offset large increases in feed and machinery costs.
Table 3: Farm business income (FBI) and contributions to FBI, dairy, 2021-22 and 2022-23. 2022-23 prices.
|
Measure |
2021-22 |
2022-23 |
Percentage change |
|
1 Total output (£) |
837,600 |
1,054,100 |
26% |
|
1a Agricultural output (£) |
834,500 |
1,051,000 |
26% |
|
2 Support and grants (£) |
44,000 |
42,800 |
-3% |
|
3 Total input (£) |
721,900 |
855,000 |
18% |
|
3b Agricultural input (£) |
720,300 |
853,500 |
18% |
|
4 Diversification income (£) |
11,400 |
6,700 |
-41% |
|
FBI (£) = 1 + 2 + 4 - 3 |
175,200 |
248,700 |
42% |
Dairy performance has varied a lot in the last ten years. Dairy farms are sensitive to market prices and experience fluctuating performance.
Dairy farms have a high average income compared with other farm types. However, while some dairy farms make large incomes, others will make a loss. They also have the largest average business size. The average standard labour requirement (SLR) for a dairy farm is 8, compared with an average of 3 across all farm types.
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