Glossary

Total income from farming (TIFF): TIFF is the official measure of the profit (output minus costs) gained by the agricultural industry in Scotland. It provides a breakdown of the value of farm production, support payments and costs. TIFF is the total profit from all farming businesses within the agricultural industry in Scotland. It measures the return to all entrepreneurs for their management, inputs, labour and capital invested, on a calendar year basis.

Real (constant) prices: Real (constant) prices use the latest gross domestic product GDP deflators to convert historic figures into prices representing prices in the most recent year.

Current (nominal) prices: Current (nominal) prices make no adjustment for inflation. These measure prices and inflation using the actual prices in that particular year. For example, current price estimates shown for 2020 are based on 2020 prices.

Gross value added (GVA): GVA is a measure of the net contribution of the industry to the wider economy. It is the value of total output minus the intermediate costs that went into producing the output, such as raw materials and services. GVA represents the income generated by businesses out of which is paid wages and salaries, the cost of capital investment and financial charges, before arriving at a figure for profit. For agriculture, this figure is calculated before support payments, and costs such as labour, rent, taxes and interest are taken into account to produce the estimate of total income from farming.

Gross Domestic Product (GDP): GDP is a measure of the value of goods and services produced by residents, before allowing for depreciation or capital consumption. Net receipts from interest, profits and dividends abroad are excluded.