Breakdown of farm income

Total average farm income is calculated from the following income streams:

• agricultural activity
• contracting activity
• diversified activity
• support payments

Farms on average made a loss of £22,500 from agricultural activity in 2023-24. Averaged across all farm types, agricultural activity is usually loss-making in Scotland. This is not unusual, 2022-23 was the first time for more than a decade when the average farm generated profit from agricultural activity.

In 2023-24, only dairy and general cropping farms made a profit on average from agricultural activity. Livestock farms continued to make a loss on average from agricultural activity.

LFA sheep farms made the largest, average, loss of £48,700 from agricultural activity in 2023-24.

Average incomes from support payments, contracting and diversified activities vary less than agricultural income by farm type.

The average farm in 2023-24 made a profit (income after costs) of £46,300 from support payments and grants, £5,400 from contract farming and £6,200 from diversified activities.

Figure 7: Breakdown of contributions to farm income by farm type, 2023-24.