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Economic Report on Scottish Agriculture, 2016

Presents an overall picture of Scottish agriculture using data from the various agricultural surveys that RESAS manage.

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3.3 Grants and subsidies (Table B2)

Chart 3.5 shows the overall impact of grants and subsidies on the average income of farm businesses. When subsidy payments are excluded, the average FBI is a loss of £17,000 in 2014-15. In each of the last six years, FBI without subsidy payments has been negative.

Chart 3.5: Average FBI of Scottish farms without grants and subsidies, 2009-10 to 2014-15

Chart 3.5: Average FBI of Scottish farms without grants and subsidies, 2009-10 to 2014-15

The difference in the messages about the profitability of agriculture without subsidies between TIFF ( chart 3.2) and FAS data (chart 3.5) may be at least partly explained by the absence from FAS of the horticulture, pig and poultry sectors. These attract relatively little in the way of subsidies but do contribute to the profitability. However this is unlikely to fully explain such a large difference.

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