Business and Policy June 2026 – Scottish Farm Business Survey

The Scottish Farm Business Survey (SFBS) is a yearly economic survey of over 400 farming businesses across Scotland. Data from the June Agricultural Census is used to weight estimates, making the survey representative of 10,200 farms in Scotland in 2024-2025.  It provides a detailed picture on the state of Scottish farming and is a key data source of economic evidence that Scottish Government uses for decision making in agricultural policy. The survey allows farmers all over Scotland to gain invaluable insights into their business whilst supporting Scottish Agriculture.  

The key findings for farming businesses across Scotland for the 2024/25 financial year include: 

• The average farm business income (net profit after costs) is up to £58,800 from £45,400 in the previous year.

• The number of farms in Scotland that are profitable without support payments is up by 12% from last year.

• Income rose for all livestock farm types this crop year, particularly Less Favoured Area (LFA) farms, with an increase of 82% for the average LFA farm.

• Dairy and General Cropping farms are the most profitable. 

• The average farm generated a profit of £500 from agricultural activities only; this is seldomly seen. 

More data on the findings of the survey for the 2024/25 financial year can be found at: 

Scottish farm business income: annual estimates 2024-2025 – gov.scot 

 

Higher livestock prices have been a main contributor for the increase in average farm income for crop year 2024-25. LFA farms saw the highest FBI increase albeit there was a rise across all livestock farms.  

 

Source: Farm Business Survey 2024-25, Scottish Government.  

The rising cattle and sheep sales price throughout the 2024-25 crop year was the biggest factor for the increase in income across all livestock farms. 

Data representing 5,311 LFA farms drove the 82% increase in income, rising by almost £13,000. Although all farms observed an increase in profit, LFA cattle farms saw the highest income. LFA cattle farms steered a profit increase of £19,100 compared to the previous year, a percentage change of 88%. 

As mentioned above the sales price for cattle and sheep was the main driver for farmers managing to improve their profits. Of the average LFA beef and sheep farms, we saw the price per head for fat lambs increase by 35%, equating to roughly £20/hd. Meanwhile, fat cattle price has increased by an average of 5% on last year, representing an increase of £37/hd. 

For livestock farms in the survey, costs varied. Fertiliser and feed costs reduced and whilst the average LFA farms saw a decrease in labour costs, lowland cattle and sheep costs increased due to the increase in property and land costs.   

Benchmark your farm 

Every year the SFBS produces a group average dataset for farmers to benchmark their business against. This allows businesses to assess their financial performance with farms of the same type and size across all of Scotland. By using a benchmark tool, it allows businesses to recognise factors affecting their profits. They can evaluate where costs are too high and what outputs could be improved.  

The whole farm benchmarking tool can be found on the FAS website. It will allow you to select your farm type and download a pdf or excel file so you can compare your own figures to three key areas: variable costs, fixed costs and Farm Business Income (FBI).  By using the benchmarking tool annually, it will allow you to identify trends, make decisions and set business goals. The tool is available for you to use and download now: 

Whole Farm Benchmarks Tool 2024-25 | Helping farmers in Scotland 

 

Join the survey 

The Farm Business Survey is recruiting farms to report on the 2025/26 year. Farms within the survey receive a detailed set of management accounts in the form of a farm business report and a whole farm benchmarking report, which allows you to compare your business with other similar businesses and see yearly progress. If you are interested in taking part, please contact scottishfarmbusinesssurvey@sac.co.uk 

 

Louise Young