Livestock farms are more reliant on support payments

Support payments play an important role in farm income. Around 73% of all farms made a profit in 2023-24. Without support this would decrease to 29% of all farms.

The importance of support payments varies by farm type. With support there is less variation in the proportion of farms that break even (have income greater than zero). Without support far fewer livestock farms make any profit, especially those in less favoured areas, than other farm types.

The proportion of all farms making a profit with support payments decreased from 83% reported in 2022-23 to 73% in 2023-24, as average income fell.

In 2023-24 the proportion of profitable lowland cattle and sheep farms in receipt of support payments was 33%. This is the lowest level across our comparable timeseries (from 2012-13 onwards). Lowland cattle and sheep farms experienced a large fall in average income in 2023-24 compared to the previous year.

The proportion of all farms which were profitable without support payments decreased from 50% in 2022-23 to 29% in 2023-24. This has returned to a similar level as 2019-20, when average income was similar.

In 2023-24 no LFA sheep farms in the sample made a profit without support payments, a first in the time series. Over the last ten years, an average of 5% of LFA sheep farms made a profit without support each year.

Figure 8: Proportions of farms which were profitable with and without support payments, by farm type, 2023-24.

LFA land is low quality and often very hilly, mostly found in very remote areas. There is less opportunity to do anything else with the land which makes it difficult to do any other activities.

Support payments are a key source of revenue for a large number of LFA farms. Current support payments are intended to allow farms to remain in business and be an active part of their local community.