Dramatic decline in farm income demands action, Lib Dem says

The Scottish and UK Government is being urged to “listen carefully” to the plight of farmers after official figures reveal average farm income fell last year by 51% to £35,500, the lowest level since 2019-2020.

The Scottish Government's Farm Business Survey for 2023/34 reported all types of farms experienced declines on average. Cereal farm income fell by 63%, dairy farm income fell by 56% and lowland cattle and sheep farm income fell by 87%.

David Green, the Scottish Liberal Democrat candidate for Caithness, Sutherland & Ross, has raised concerns with Alistair Carmichael MP, the Chair of Environment, Food and Rural Affairs Committee.

The National Farmers Union responded with “deep concern” to the figures. The NFU said it highlights the “deepening financial pressures” facing Scottish farmers and urged the UK and Scottish governments to act. 

It comes after inheritance tax changes proposed by the UK Government, which would see farms passed to a son or daughter subject to much higher taxes than in previous administrations, has caused many to fear that farmers will become priced out of the industry.

Mr Green said: “We have been told for long enough that farmers are facing unprecedented pressures, from increased fuel costs, fertilizer costs, feed costs and increasingly unpredictable weather. The sharp decline in income is another wake up call. 

“Farmers are the backbone of our rural economy. We need them now more than ever to provide food security, restore nature and tackle the climate crisis.

“The last thing they need are new threats to their businesses. It's vital that both of Scotland’s governments listen carefully to their challenges and provide the support and funding they need to do what is best for our communities.

“That starts with the UK Government reversing the disastrous family farm tax and ruling out the importation of US food produced to lower standards than those required of UK farmers.”

ENDS

Notes to editors:

Official figures can be found here: Scottish Farm Business Income: Annual Estimates 2023-24