Scottish farm business income: annual estimates 2017-2018

Farms that diversify business activity earn more money

Around 400 farms have been providing us with their data over a long period of time. This allows us to see changes in their diversified activity that generates income. Such activities include letting out holiday cottages or small wind turbines that generate electricity.

61% Diversified farms that rent out buildings

More than half of farms have diversified activities that generate additional incomes to their businesses. Farms that have not got diversified activity on average generate £19,600 less income per annum.

The most common diversified activity was renting out farm buildings. Profitable activities that farmers are doing include waste disposal, rural crafts, advertising in fields and clearing roads in winter.

The additional income that diversified activity creates has now increased to 66 per cent over those farms that don’t. In 2013-14 this gap was only 35 per cent. This shows diversified activity is becoming more important.