Scottish farm business income: annual estimates 2023-2024
Farm business level estimates of average incomes for 2023-2024. An Accredited Official Statistics publication for Scotland.
First published: 3 April 2025.
Dairy farm income decreases from record high
Average income for dairy farms was £116,300. This is a decrease of 56% (£148,300) from 2022-23, the highest income in the timeseries. Incomes remain above the ten-year average. Falling outputs mostly drove the decreased income in 2023-24.
Figure 4: Average farm business income, dairy and all farms, 2012-13 to 2023-24. 2023-24 prices.
Agricultural output decreased by 12% (£131,100), driven by a large fall in milk and milk products output of 14% (£126,800).
Average milk prices in the survey fell in 2023-24, from 45 to 39 pence per litre. Dairy farms are sensitive to changes in milk market prices. Average yields also decreased slightly, from 8,000 to 7,800 litres per dairy cow.
Total inputs costs increased by 2% (£21,100), largely driven by a 50% (£10,900) increase in share of net interest payments. This offset decreases in feed and fodder costs.
Dairy farms have a high average income compared with other farm types. However, while some dairy farms make large incomes, others will make a loss. They also have the largest average business size. The average standard labour requirement (SLR) for a dairy farm is 8, compared with an average of 3 across all farm types.
Table 4: Farm business income (FBI) and contributions to FBI, dairy, 2022-23 and 2023-24. 2023-24 prices.
|
Measure |
2022-23 |
2023-24 |
Percentage change |
|
1 Total output (£) = a + b |
1,112,400 |
981,800 |
-12% |
|
a Agricultural output (£) |
1,109,000 |
978,000 |
-12% |
|
b Contracting output (£) |
3,400 |
3,900 |
15% |
|
2 Support payments income (£) = c - d |
45,400 |
47,500 |
5% |
|
c Payment schemes (£) |
45,600 |
47,700 |
5% |
|
d Payment scheme costs (£) |
200 |
200 |
-12% |
|
3 Total input (£) = e + f |
900,300 |
921,400 |
2% |
|
e Agricultural input (£) |
898,900 |
918,900 |
2% |
|
f Contracting input (£) |
1,400 |
2,500 |
82% |
|
4 Diversification income (£) = g - h |
7,200 |
8,400 |
17% |
|
g Diversification output (£) |
24,500 |
25,900 |
6% |
|
h Diversification input (£) |
17,300 |
17,500 |
1% |
|
5 FBI (£) = 1 + 2 + 4 - 3 |
264,600 |
116,300 |
-56% |
|
6 Agricultural income = a - e |
210,100 |
59,000 |
-72% |
|
7 Contracting income = b - f |
2,000 |
1,400 |
-32% |