Farm Incomes Rise – But Challenges Remain for Scottish Agriculture

Scottish farm incomes have shown signs of recovery, but industry leaders warn the picture remains far from stable.
New figures from the Scottish Government show average Farm Business Income (FBI) for 2024–2025 has risen to around 58,800 – an increase of roughly 30 per cent on the previous year. However, NFU Scotland says the improvement follows a sharp drop in 2023–2024, when average income fell to around 35,500.
NFU Scotland President Andrew Connon said the latest figures should be viewed as a recovery from a very low base rather than a return to long-term stability.
The sharp fall in incomes last year underlines just how exposed our sector is to volatility, he said. That volatility hasn’t gone away.
The data highlights a mixed picture across the industry. Livestock and dairy farms have benefited from stronger market prices, while arable farms continue to face pressure from falling output prices and rising costs.
NFU Scotland also pointed to the sector’s continued reliance on direct support payments, with only around 41 per cent of farms operating profitably without them.
Mr Connon said: That is not a weakness. It reflects the vital role farming plays in Scotland – producing food, supporting rural communities and helping deliver environmental goals.
The Union also warned of ongoing pressures from rising labour costs, global market uncertainty and increasingly unpredictable weather linked to climate change. It added that international tensions are already impacting energy and input costs, creating further instability.
Despite the challenges, NFU Scotland welcomed the Scottish Government’s Rural Support Plan, describing it as an important step towards providing long-term certainty.
However, it stressed that more action is needed to support the sector, including maintaining direct payments, addressing rising costs and ensuring fair returns for producers.
Mr Connon added: Even in a year of improved income, too many businesses are struggling to generate sustainable returns.
A thriving farming sector is essential to Scotland’s economy, environment and food security. It cannot be taken for granted.
The Union is now calling on the next Scottish Government to prioritise long-term funding, fair policies and support for innovation to help secure the future of farming and crofting across Scotland.