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Income from farming falls after strong 2013

A National Statistics Publication for Scotland.

Poor cereal and potato prices in 2014 have resulted in Scotland’s farming not repeating the high levels of income seen in 2013.

Scotland's Chief Statistician today published Total Income from Farming Estimates for Scotland 2012-2014, which contains near-final estimates of Total Income From Farming (TIFF) for 2013 and an initial estimate of 2014 TIFF. The figures show income increased by 29 per cent in 2013 compared to the previous year, but initial estimates for 2014 suggest a drop of 18 per cent.

Agriculture was worth £823 million to the Scottish economy in 2013, up from £630 million in 2012, potatoes, milk and vegetables all doing very well. Although not all the data are yet in, income for 2014 may have fallen back to about £688 million, which, once inflation is taken into account, is about average for the past decade.

For 2014 it looks like the potato and cereal sectors both suffered from the large drop in price, though the reduction for cereals was offset by a very productive harvest. Income from potatoes fell £105 million to £170 million, though this is relative to an exceptionally strong year in 2013. Cereals fell by £46 million to £381 million.

Overall, livestock saw a small increase in value, though there was a small decline in the largest sector, the beef industry, with falling prices and slaughter numbers. Output from slaughter or sales of cattle amounted to an estimated £710 million. However, it was a better year for sheep farmers, with increased prices and numbers resulting in a 15 per cent increase in output to £203 million. The pig industry also regained some of the value lost in recent years, with an estimated output of £94 million, up £15 million on 2013. Poultry was down £18 million to £100 million.

Total costs were estimated to have fallen slightly in 2014. Feed costs are estimated to have fallen as much as £40 million, to £644 million. The cost of fertiliser is estimated to have fallen £31 million to £167 million, and fuel by £14 million, to £127 million. However labour was up £15 million to £361 million.

Subsidies amounted to £560 million in 2013 and £491 million in 2014. The large reduction in 2014 was due to Single Farm Payments being affected by both a less favourable exchange rate and an eight per cent reduction in the original euro payment. Subsidies remain an important factor in the profitability of farming, accounting for 11 per cent of gross income.

In the longer term, income from farming has been rising steadily since a dip in the late nineties. However, within that trend the figures fluctuate from year to year. 2013 was the highest in nearly 20 years.

Also included in the publication are regional estimates for TIFF. On a per hectare basis, the highest level of income from farming is in the South West. This is mainly due to income from milk, accounting for about 40 per cent of the region’s output, and beef production. The North West is the second highest, with beef and cereals being its strength. Highlands & Islands has the lowest income from farming, where agriculture is estimated to have made only a very small profit once support is included. Eastern Scotland has the most diverse distribution of output, with cereals, potatoes, horticulture, cattle, poultry and other income each producing more than ten per cent of the region’s output, with none of them above 20 per cent.

Income from farming information is used to monitor the performance of the industry, but also as part of the calculation of Scottish GDP and in the UK National Accounts. The 2014 figures will be revised next year, once more complete data are available.

The figures released today were produced by independent statistical staff, free from any political interference, in accordance with professional standards set out in the Code of Practice for Official Statistics.

Notes To Editors

The full statistical publications can be accessed at: http://www.scotland.gov.uk/stats/bulletins/01138

Further information on Agriculture and Fisheries statistics within Scotland can be accessed at: http://www.scotland.gov.uk/Topics/Statistics/Browse/Agriculture-Fisheries

More information on the standards of official statistics in Scotland can be accessed at: www.scotland.gov.uk/Topics/Statistics/About

 

Channel website: http://www.gov.scot/

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