Scottish farm profits hit record £1.5 billion in 2025

Scotland’s farming profits hit a record £1.5 billion in 2025, driven by strong commodity prices and steady costs, according to Scottish government estimates.

Total income from farming — the official measure of the profit (output minus costs) of the agricultural industry in Scotland — is forecast to reach its highest level on record, marking a significant uplift on 2024.

Stronger output combined with broadly stable costs helped drive the increase. Agricultural output rose by 8% to £5.1 billion, underpinned by firm prices across key commodities.

Cattle, milk and potatoes were among the biggest contributors, with sustained market strength boosting overall returns. At the same time, total costs are estimated at £4.1 billion.

Although many expenses have fallen from the peaks seen in 2022 and 2023, some pressures remain. Labour and seed costs both recorded increases, tempering the overall decline in input prices.

Beef retained its position as Scotland’s largest agricultural sector, reaching a record value of £1.1 billion as market prices remained strong.

The dairy sector also posted gains, with increased production and high prices through much of the year lifting its value. Elsewhere, rising livestock prices helped push up returns in the sheep sector.

Potatoes were a standout in the cropping sector, with their value climbing to more than £0.4 billion. In contrast, total cereal output fell for a second consecutive year.

However, it was a strong year for Scottish wheat, where higher volumes helped offset weaker prices and supported overall output.

Support payments continued to play a crucial role in farm profitability, accounting for 40% of total profit in 2025. While still significant, this is below the longer-term average of around 64% seen over the past decade.

The figures remain provisional and may be revised as more data becomes available, but they point to a notably robust year for Scotland’s agricultural industry.