AVERAGE FARM incomes in Scotland have decreased by 48% in the last year, leaving farming families a return of just £12,600 – which broken down to hourly income for unpaid labour would put almost two-thirds of farmers and family members below the legal minimum agricultural wage for paid workers.

These latest figures, released by Scotland’s Chief Statistician, examine a number of financial indicators for the accounting period 2015-16, which focuses on the 2015 crop year, and are based on annual audits of 500 commercial farms in Scotland.

A triple whammy of poor farmgate prices, rising input costs and falling support levels had seen industry incomes fall by 75% in five years ,placing huge financial pressure on Scotland’s farmers and crofters said NFU Scotland, which called on both the food supply chain and politicians to wake up to the bleak prospects facing primary producers.

Director of policy Jonnie Hall said: “These bleak income figures provide hard evidence of the sustained financial damage to farm businesses across a range of sectors. 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," he said. “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," said Mr Hall.

“As we enter a period of even greater uncertainty, with the potential to further undermine confidence, it is essential that producers are given unequivocal signals that new trading deals and support arrangements will put the prosperity of farming businesses top of the agenda.

“There is also a further onus on those further up the food and drink chain to urgently address the imbalances," he said. "Scotland’s food and drink sector, lauded for its ongoing success and ambitious targets, must start to deliver for those at the farmgate and who have seen their incomes fall by more than 75% since the start of the decade.”