Poor farmgate prices, rising input costs and falling support levels have been blamed as figures show Scottish farm incomes halved in a year.
The steep, downward spiral in farm incomes is placing 'huge' financial pressure on Scotland’s farmers and crofters, says NFU Scotland.
The farming union described the figures as an 'income shocker' for Scotland's farmers and crofters.
Latest statistics from Scottish Government estimate that average farm incomes have decreased by 48 per cent in the last year alone, leaving farming families a return of £12,600.
The downward slide in farm incomes, since a peak in 2010/11, has seen a devastating 75 percent fall over five years.
Scottish Government states that when converting farm income estimates to hourly income for unpaid labour - such as farm owners, family members and business partners - the income generated from almost two-thirds of farm businesses wouldn’t have been enough to meet the legal minimum agricultural wage for paid workers.
'Growing imbalance'
NFU Scotland is calling on Scotland’s 'booming' food and drink sector to address 'immediately' the growing imbalance between the growth and profitability being enjoyed by retailers and processors and the returns to those producing the raw materials at the farm gate.
The farm income figures also bring into sharp focus the need for post-Brexit farm policy and support structures that will secure profitability and stability at farm level.
NFU Scotland’s Director of Policy Jonnie Hall said the bleak income figures provide evidence of the 'sustained financial damage' to farm businesses across a range of sectors.
He said: “Anecdotal comments and suspicion around how difficult it has been for farms and crofts to make a profit in recent times are now backed by fact.
“The viability, let alone profitability, of every Scottish farming business relies on three cogs working together – costs, markets and support.
“Given the deterioration in farm incomes, the evidence is now clear that no part is currently working for farmers or crofters. Whether producing livestock, crops, milk, poultry, pigs, fruit or veg, farmers and crofters continue to face rising input and compliance costs, declining market returns and an erosion of support payments that are conspiring to threaten the very existence of many.
“These figures highlight the absolute requirement to drive down all costs, ensure a much fairer share of the margins in the supply chain to the primary producer, and the vital need for governments to commit to ongoing support targeted at active farm businesses.”
