Scottish farm business income: annual estimates 2011-2012

Estimates of Total Income from Farming for 2011, inital estimates for 2012 and Farm Business Income estimates for 2011-12. For the most recent data, visit the Scottish farm business income (FBI) collection page below.

This document is part of a collection

1. Introduction

This publication contains full estimates of Total Income from Farming (TIFF) for the calendar year 2011, together with a look at initial estimates for 2012, as well as average Farm Business Income (FBI) estimates for the financial year 2011-12.

Chart 1: Trends in Total Income from Farming (TIFF) and Farm Business Income (FBI)

Chart 1: Trends in Total Income from Farming (TIFF) and Farm Business Income (FBI)

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Why are the 2012 TIFF estimates only described as "initial estimates"?

Much of the data used in calculating income from farming for 2012 only become available towards the end of 2013, and some not until 2014. This means that the 2012 TIFF estimates published here contain a large number of forecasts, often based on projecting past trends or simply re-using 2011 data. Early in 2014 and again in 2015 we will publish updated estimates for 2012, which may differ substantially from those published here.

Why are there two measures of income in this publication, TIFF and FBI?

The two farm income measures contained in this publication are closely related and provide complementary information. TIFF provides a national estimate of total income across all agricultural holdings, with a breakdown of the national value of farm outputs, costs and subsidies. FBI provides a sectoral insight into the incomes of farm businesses for eight different farm types[1], with estimates of average incomes, outputs, costs and subsidies.

There are also some key differences between the two farm income measures which need to be considered when making comparisons:

  • They cover different time periods, with TIFF compiled on a calendar year basis and FBI compiled on an accounting year basis,
  • TIFF covers all sizes of agricultural holdings, whereas FBI estimates only relate to larger farms, above 0.5 standard labour requirements[2],
  • TIFF covers all types of farming, whereas FBI estimates exclude horticulture, specialist pig and specialist poultry farms,
  • Due to the re-alignment of LFASS payments, FBI in 2006-07 only relates to the £40million LFASS supplementary payments made at the national level, whereas the TIFF figure for 2006 is based on £100 million, including both the £40m supplementary payment and the £60m core LFASS payment. This has a clear impact on the corresponding TIFF and FBI trends over this period.

Both farm income measures are used by government and stakeholders to inform agricultural debate and policy development. The government also uses results from both measures to meet the requirements of Statistical Regulations of the European Commission.

This Statistical Publication provides commentary and graphics on the key drivers behind TIFF trends between 2010 and 2012, and contains a table showing the aggregate value of all farm outputs, costs and subsidies between 2003 and 2012. Further detail, analysis and commentary on the components of TIFF will be published in the 2013 Economic Report on Scottish Agriculture (ERSA)[3] around June 2013.

This publication also provides FBI trends for eight different farm types between 2007-08 and 2011-12, with commentary focusing on changes between 2010-11 and 2011-12. It includes comments on the likely impact of key factors on 2012-13. A more detailed analysis of FBI for each farm type will be provided in the 2013 ERSA publication.



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