Scottish farming sees income boost — yet instability still grips sector

Scottish farm incomes have surged by 30% — but NFU Scotland has warned the rebound masks “fragile” finances and ongoing instability across the sector.

Latest Scottish Government figures show average Farm Business Income (FBI) rose to around £58,800 in 2024–2025, a sharp increase on the previous year.

However, the union said the rise follows a steep downturn and does not signal a return to long-term stability.

NFU Scotland President Andrew Connon said the figures offer “some welcome signs of recovery” after “an exceptionally difficult year for Scottish agriculture”.

But he added: “This is a recovery from a very low base, not a return to stability or sustained profitability.”

The previous year saw average FBI fall to roughly £35,500, underlining what Mr Connon described as the sector’s continued exposure to instability.

“That volatility hasn’t gone away - it remains one of the defining features of Scottish agriculture,” he said.

Despite the overall uplift, the picture remains uneven across sectors.

Livestock producers have benefited from stronger market prices, while dairy businesses have seen a notable rebound.

However, arable farms continue to face a tightening margin squeeze, with falling output prices and rising fixed costs putting pressure on returns.

Crucially, the data also highlights the sector’s reliance on support payments.

Only around 41% of farms are profitable without support.

“That means the majority of Scottish farm businesses still depend on that support to remain viable,” Mr Connon said.

He added this reliance reflects the wider role of agriculture, noting: “It reflects the unique role that farming plays in Scotland… Direct support is fundamental to maintaining that.”

A thriving farming sector is essential to Scotland’s food security, economy and environment — but NFU Scotland warned that mounting pressures continue to threaten its resilience.

Farm businesses are facing rising labour costs alongside external risks including global market shocks, geopolitical instability and increasingly unpredictable weather linked to climate change.

The union said escalating tensions in the Middle East are already contributing to renewed volatility in energy and input costs, highlighting how quickly conditions can shift.

“These figures reinforce a clear message – profitability at farm level remains fragile,” Mr Connon said.

“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 agricultural support through its Rural Support Plan, describing it as an important step towards greater certainty.

“Securing clarity on future support has been a major priority… But certainty must now be matched with delivery,” Mr Connon said.

“Farmers need the confidence to invest, innovate and plan for the long term.”

Looking ahead, the union said decisive action will be needed to strengthen resilience, including maintaining direct support, improving supply chain fairness and addressing cost pressures.

Mr Connon said the figures ultimately highlight both progress and persistent challenges.

“The 2024–2025 FBI figures paint a mixed picture,” he said. “There are signs of recovery, but the underlying challenges… remain significant.”

He warned that without sustained action, parts of the sector risk being left behind.

“Our focus must now be on working with government and partners to create the conditions for a resilient, profitable and sustainable future for Scotland’s farmers and crofters — or risk leaving many businesses struggling to survive.”

NFU Scotland’s priorities are set out in its 2026 manifesto, which calls on the next Scottish Government to back domestic food production through long-term funding, fair policies and greater certainty.