Scottish farm business income: annual estimates 2021-2022

Glossary

Debt ratio: can explain how much of a business’s assets are financed by debt

Diversified activities: non-agricultural activities that use farm resources

Farm Business Income (FBI): the total income available to all unpaid labour and their capital invested in the business. Income from diversified activities are included in overall FBI

Farm types: farms are classified based on the how much of their standard output is from the crop and livestock enterprises on each farm

Less Favoured Area (LFA): land where farming is more difficult due to natural constraints, such as hills and soil quality

Minimum Agricultural Wage (MAW): is set by the Scottish Agricultural Wages Board each year. For this analysis an average MAW is used to cover the years included in the Farm Business Survey

Off-farm income: income from activities not related to the farm business or farm diversification, such as a income from another family member’s employment

Standard labour requirement (SLR): is the number of workers required each year to run a farm, based on its cropping and livestock activities.

Standard output: estimated worth of crops and livestock