More than half of Scottish farms would have suffered losses last year without subsidies, despite the fact that the average farm income reached a six-year high.
The latest Farm Income (FBI) data released by the Scottish Government on March 26 shows a 19% increase in average farm income for farmers last year to £ 35,400, the highest figure in six years and a notable improvement in the low average revenue of £ 16,800 in 2015/16.
The FBI represents the total income available for all unpaid labor and their capital invested in the business, excluding income from diversified activities. Dairy farms showed the highest average income growth of £ 73,100, mainly due to an increase in the average price of milk by 22% to 28 pence per liter.According to the chief government statistician, the dependence of the agro-industrial sector on subsidy payments was obvious in numbers: more than 60% of the surveyed farms reported losses without subsidies. Medium business lost £ 7,400 without support.
Beef and sheep farms in less favorable wounds were more vulnerable, with an average loss of £ 27,400 without support. Data also show that farms that went beyond traditional agricultural work, such as renting holiday homes or the construction of small wind farms had revenues of approximately £ 19,600 higher than those of farms that did not diversify.