Average farm income increases

Estimates for the average farm provide an overview of the financial health of the industry. The average farm is the weighted average across all farm types included in the Farm Business Survey.

Average farm income is around £58,800 in 2024-25, the third highest average income since 2012-13.

This is an increase of 30% (£13,400) from the previous year’s income of £45,400, which was the lowest income since 2019-20, after adjusting for inflation.

Figure 1: Average farm business income, with and without support payments, 2012‑13 to 2024-25. 2024-25 prices.

The increase in average farm income was driven by rising outputs and slight decreases in input costs.

Agricultural output on the average farm increased by 5% (£12,400) to £273,700 in 2024-25. This was mostly driven by increases in livestock output, particularly from cattle, which increased by £11,100, and potato output, which increased by £4,800. The increases are largely driven by increased livestock and potato prices. Wheat and barley outputs decreased by £4,900 and £3,600 respectively.

Agricultural input costs decreased by 1% (£2,200) from the previous year to £273,200. Fertiliser costs decreased while regular labour costs increased. Land and property costs, such as maintenance, insurance and depreciation of buildings and works, also increased.

The average farm made a profit of £500 in agricultural income in 2024-25. This is net profit from an average agricultural output of £273,700 and agricultural input costs around £273,200. Agricultural activity is usually loss-making for the average farm in Scotland. This is only the second time agricultural activity is profitable in over a decade. In the previous year, the average farm made a loss of £13,900.

Farms received around £45,700 in support payments and grants on average. This is a decrease in real terms of 4% from payments received in 2023-24. This was driven by the fixed rate of the Basic Payment Scheme, which did not increase with inflation. Farms received £45,600 (nominal figure) in payments and grants in 2023-24.

The average business made a profit of £13,100 without support. The average farm has only made a profit without support in three of the past 10 years.

The average farm made around £8,100 from diversified activities, for example by renting out buildings or generating electricity. This is a 25% increase from the previous year’s figure of £6,500.

This report provides a correction to 2023-24 estimates for general cropping and average farm or “all farms” results. The correction includes data on potato outputs missed in the 2023-24 publication. More information is available under Data and methodology.

Table 1: Farm business income (FBI) and contributions to FBI, average for all farms, 2023-24 and 2024-25. 2024-25 prices. Figures are rounded to the nearest £100 and percentage change is calculated from unrounded figures.