Scottish farm business income: annual estimates 2017-2018

…LFA sheep farms still have low incomes and rely on subsidies

LFA sheep and LFA beef farms have been grouped together because they have low but stable incomes. LFA land is low quality and often very hilly so there is little opportunity to do anything else with the land and so it is difficult to do any other activities.

£18,200 LFA Sheep farms average income

Sheep farms and beef farms in less favoured areas have the lowest income and have been historically low compared to other farm types.

Subsidies play an important role for a large number of LFA farms. For example LFA sheep farms without subsidies would on average be making a loss of £27,400.

These farms are mostly found in very remote areas. Current subsidies allow many of these farms to remain an active part of the community.