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Sustainable Farming - Total Income From Farming

High Level Summary of Statistics Trend Last update: January 2017

Total Income From Farming

Last updated: January 2017

The long term trend, illustrated in Chart 2, inevitably includes some jumps in individual elements where a particular methodology has changed and it has not been possible or preferable to recalculate the time-series back to 1973. However these individual discontinuities are considered small enough relative to the overall pattern of changes in TIFF.

TIFF 2016

In real terms (once inflation has been accounted for), high inflation in the mid-1970s resulted in a large fall in TIFF. TIFF then almost trebled between 1990 and 1995 before falling from 1995 to 1998 primarily due to a strong pound, weak world commodity prices and the impact of BSE. The outbreak of Foot and Mouth Disease in 2001 appears to have had little impact on TIFF. The real terms value of TIFF then almost trebled between 1998 and 2013, showing consistent steady growth, though fluctuating every few years.

Total outputs from farms in Scotland fell from £3.03 billion in 2014 to £2.88 billion in 2015. Once inflation is taken into account this was a decrease of six per cent. The first estimates for 2016 suggest a fall of just £14 million to £2.87 billion, or a real terms decrease of one per cent.

Total costs for farms in Scotland fell from £2.75 billion in 2014 to £2.68 billion in 2015. Once inflation is taken into account this was a fall of four per cent. The first estimates for 2016 suggest a fall of £63 million to £2.61 billion, or a real terms fall of three per cent.

Subsidies and other payments are mainly affected by changes in the euro exchange-rate, though in recent years there were significant reductions in the euro payment amount. This meant that in 2015 total payments (excluding coupled support) fell by £46 million to £444 million, an 11 per cent decrease after accounting for inflation. However, in 2016, with the weakening of the pound in the latter part of the year, 2016 payments increased by £47 million to £491 million, a ten per cent increase after accounting for inflation.

Source: “Total Income from Farming 2014 - 2016”, Scottish Government Rural and Environment Science and Analytical Services Division

Web link

Total Income from Farming Estimates 2014 to 2016 (Published January 2017) http://www.gov.scot/Publications/2017/01/1031/0

Graphical representation of the 2015 and 2016 TIFF data are displayed in the following infographics

TIFF 2016 infographic

TIFF 2015 infographic