NFU Scotland has responded to the latest Scottish Government Farm Business Income (FBI) figures for 2024–2025, which show a partial recovery in average incomes following the previous year’s sharp downturn.
While the headline figure – around £58,800, up approximately 30 per cent year-on-year – is welcome, the Union warns it masks ongoing volatility, fragile profitability and uneven performance across the sector
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NFU Scotland President Andrew Connon said:
“The latest Farm Business Income figures provide some welcome signs of recovery following what was an exceptionally difficult year for Scottish agriculture. However, we must be clear – this is a recovery from a very low base, not a return to stability or sustained profitability.
“The sharp fall in incomes in 2023–2024, where the average FBI dropped to around £45,400, underlines just how exposed our sector is to volatility. That volatility hasn’t gone away - it remains one of the defining features of Scottish agriculture.”
The figures show that while livestock sectors saw improved incomes driven by stronger market prices, and dairy businesses experienced a significant rebound, this recovery remains uneven. In contrast, arable farms continue to face a tightening margin squeeze, with falling output prices and rising fixed costs placing sustained pressure on profitability.
NFU Scotland highlighted that a key and consistent message from the data is the sector’s ongoing reliance on direct support.
“Only around 41 per cent of farms are profitable without support payments. That means the majority of Scottish farm businesses still depend on that support to remain viable,” Mr Connon continued.
“That is not a weakness. It reflects the unique role that farming plays in Scotland. Our farmers and crofters deliver high-quality food, support rural communities, manage our landscapes and contribute to climate and biodiversity goals. Direct support is fundamental to maintaining that.”
The Union also pointed to continuing cost pressures, including rising labour costs, alongside ongoing external risks such as global market shocks, geopolitical instability and increasingly volatile weather driven by climate change. It warned that escalating tensions in the Middle East are already contributing to renewed volatility in energy and input costs, underlining how quickly conditions can change and making the need for long-term funding certainty and greater resilience across the sector even more acute.
“These figures reinforce a clear message – profitability at farm level remains fragile. Even in a year of improved income, too many businesses are struggling to generate returns that allow for reinvestment or to properly reward labour,” Mr Connon said.
NFU Scotland welcomed the Scottish Government’s recent commitment to future agricultural support through its Rural Support Plan, describing it as a critical step in providing much-needed certainty for the sector.
“Securing clarity on future support has been a major priority for NFU Scotland and a significant win for our members. But certainty must now be matched with delivery. Farmers need the confidence to invest, innovate and plan for the long term.”
Looking ahead, NFU Scotland said the figures reinforce the need for the next Scottish Government to take decisive action to secure a profitable, sustainable and resilient future for Scottish agriculture:
- Maintain direct and coupled support, underpinned by long-term funding certainty
- Ensure future agricultural policy delivers income stability, alongside environmental outcomes
- Address labour, land and regulatory cost pressures facing farm businesses
- Improve supply chain fairness and farmgate returns for producers
- Enable investment through capital support, productivity and innovation measures
Mr Connon concluded:
“The 2024–2025 FBI figures paint a mixed picture. There are signs of recovery, but the underlying challenges facing Scottish agriculture remain significant.
“A thriving farming sector is essential to Scotland’s food security, economy and environment. It cannot be taken for granted.
“Our focus must now be on working with government and partners to create the conditions for a resilient, profitable and sustainable future for Scotland’s farmers and crofters.”
These priorities are set out in NFU Scotland’s 2026 Manifesto, which calls on the next Scottish Government to back food producers with long-term funding, fair policies and a clear commitment to domestic food production.
Notes to Editors
- A photograph of Andrew Connon is attached
- A copy of the NFUS Manifesto can be found here
Ends
Contact Carly Ross on 07860 642826