New Scottish Government Farm Business Income (FBI) data for 2024–2025 shows average incomes rising to around £58,800 – an increase of roughly 30% on the previous year. However, the Union said the improvement comes off the back of a particularly poor 2023–2024, when incomes fell sharply to about £35,500.
NFU Scotland president Andrew Connon said the figures highlight recovery, but not stability.
“The latest Farm Business Income figures provide some welcome signs of recovery following what was an exceptionally difficult year for Scottish agriculture,” he said. “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 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.”
Performance across sectors remains mixed. Livestock enterprises have benefited from stronger market returns, while dairy businesses have seen a notable rebound. In contrast, arable farms continue to face tightening margins, with weaker output prices and rising fixed costs squeezing profitability.
NFU Scotland said the figures again underline the sector’s reliance on direct support, with only around 41% of farms profitable without it.
“That is not a weakness,” Mr Connon said. “It reflects the unique role farming plays in Scotland – delivering food, supporting rural communities, managing landscapes and contributing to climate and biodiversity goals. Direct support is fundamental to maintaining that.”
The Union also flagged ongoing pressures from rising labour costs, volatile input markets and wider global uncertainty. Geopolitical tensions and climate-driven weather extremes continue to add to the risk facing farm businesses.
“These figures reinforce a clear message – profitability at farm level remains fragile,” Mr Connon added. “Even in a year of improved income, too many businesses are struggling to generate returns that allow for reinvestment or to properly reward labour.”
NFU Scotland welcomed the Scottish Government’s commitment to future funding through its Rural Support Plan, describing it as a key step in providing certainty.
However, it stressed that delivery must now follow.
“Farmers need the confidence to invest, innovate and plan for the long term,” Mr Connon said.
Looking ahead, the Union is calling for:
- Long-term certainty on direct and coupled support
- Policy that delivers both income stability and environmental outcomes
- Action on labour, land and regulatory costs
- Fairer supply chains and improved farmgate returns
- Greater investment in productivity and innovation
“The 2024–2025 figures paint a mixed picture,” Mr Connon concluded. “There are signs of recovery, but the underlying challenges remain significant.
“A thriving farming sector is essential to Scotland’s food security, economy and environment. It cannot be taken for granted.”
