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Publication - Statistics

Scottish farm business income: annual estimates: Methodology

Published
28 March 2024
Directorate
Environment and Forestry Directorate, +1 more … Agriculture and Rural Economy Directorate
Topic
Environment and climate change, Farming and rural

Methodology for Scottish farm business income estimate publications

Part of

Changes to methodology

Scottish farm business income estimates 2023-24

The FBS 2023-24 sample was impacted by Basis Period Reform (BPR).

Basis Period Reform

Data gathered from over 100 farms in the FBS 2023-24 sample were impacted by Basis Period Reform (BPR). Under BPR, the accounting year of businesses will change to align with the tax year. The transition year of BPR transition began for farm businesses during crop year 2023. The accounting year end for some farms moved forward from November to March, whilst others moved back from May to March.

To minimise the impact of BPR and to keep data collection over a 12-month period, an opening valuation was estimated for farms with previous accounting year ending in November. The opening valuation was estimated for a date 12 months prior to the new accounting year end at 31 March. Closing valuations were calculated on 31 March. For farms with previous accounting year ending in May, closing valuations were calculated on 31 March.

BPR reform took full effect in crop year 2024. It is expected that the majority of farms in the FBS sample will change accounting years over the next few years to align with the tax year.  

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