Scottish Government’s research released today shows average decline
NFU Scotland responded with deep concern to new official statistics showing a dramatic 51% fall in average farm incomes in 2023/24. The Union said the figures highlight the deepening financial pressures facing Scotland’s food producers and underlines its calls for urgent, joined-up action across governments and fairer returns through the entire supply chain.
According to the Scottish Government’s Farm Business Survey, average farm income has dropped to £35,500 - the lowest level since 2019/20. Particularly hard-hit are livestock producers, with lowland cattle and sheep farm incomes plummeting by 87% and 68% of these farms now loss-making. In addition, more than one third of cereal and milk producers recorded a loss.
NFU Scotland President Andrew Connon said: “This sharp decline isn’t just about economics – it's about the viability of farming businesses and the communities they support. For many, farm support is the only thing keeping the gates open. Without it, vital parts of our food system and rural economy simply wouldn’t survive. In addition, it’s alarming but not surprising to see the financials of the cereals and milk sectors given the subdued prices for cereals, not helped by continued grain imports, and huge disparity with milk contracts”.
“Farmers and crofters are part of the solution to climate and biodiversity goals, but we need fairer and sustained returns through supply chains, and a support framework that gives confidence to invest, produce food sustainably and plan for the future”.
NFU Scotland acknowledges the ongoing commitment from Scottish Government to maintain core support, but stresses the need for certainty and delivery through the Agriculture and Rural Communities (Scotland) Act.
The Union also criticised recent UK Government proposals on inheritance tax, warning they would compound an already dire situation for family-run farms.
President Connon added: “This should be a wake up call to the UK Government. It must urgently reconsider proposals that could decimate generational family farms. These are not cash-rich businesses – they’re the backbone of food production and rural Scotland.”
NFU Scotland is urging the wider supply chain to play its part by delivering a fairer return to primary producers, many of whom face crippling cost pressures and reduced margins.
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Contact Carly Ross on 07860 642826