Scottish farm business income: annual estimates 2021-2022

Farm business level estimates of average incomes for 2021-2022. A National Statistics publication for Scotland.

This document is part of a collection

Other aspects of farm profitability

Figure 11: Other aspects of farm profitability, 202021 and 202122

A graphic highlighting, for 2020-21 and 2021-22, the average farm net worth, the average off-farm income and the percentage of farms which could pay the minimum agricultural wage to unpaid labour.

Assets and debt impact farm businesses. Net worth (assets minus debt) estimates the overall value of a business. The average farm was estimated to have a net worth of £1.59 million in 202122, an increase of 11% compared to the previous year.

The average debt ratio was 12.2% in 202122, a slight decrease from the 12.3% figure in 202021. This indicates how much of the average business’s assets are financed by debt.

Farms may also earn income from off-farm jobs that do not contribute to farm business income. The average farm earned £14,000 from off-farm income in 202122, an increase of 5% from the previous year.

Another way of looking at farm profitability is whether farm income is enough to pay unpaid labour the minimum agricultural wage (MAW, £8.86 per hour). In 202122, 60% of farms could afford to pay the MAW. This increased from 50% of farms in the previous year.



Back to top