PART I: CLASSIFICATION OF FARMS
1. Type of Farm
The classification is based on detailed sub-types as defined in the EC farm typology, which have been grouped together where required to give the types shown below. These groupings were revised in 2002 throughout the United Kingdom such that types are now comparable between countries.
The classification is based on the relative importance of the various crop and livestock enterprises on each farm assessed in terms of standard gross margin (an economic measure of output less variable costs). The method of classifying each farm is to multiply the area of each crop (other than forage) and the average number of each category of livestock by the appropriate standard gross margin, the proportions of the total contributed by the various enterprises determining the type of farm. The list below defines the main types that are dealt with in this booklet.
Type | Definition |
|---|
Specialist Sheep ( LFA) | Farms in the less-favoured areas with more than two-thirds of the total standard gross margin coming from sheep. |
Specialist Beef ( LFA) | Farms in the less-favoured areas with more than two-thirds of the total standard gross margin coming from cattle. |
Cattle and Sheep ( LFA) | Farms in the less-favoured areas with more than two-thirds of the total standard gross margin coming from sheep and beef cattle together. |
Cereals | Farms where more than two-thirds of the total standard gross margin comes from cereals and oilseeds. |
General Cropping | Other farms where more than two-thirds of the total standard gross margin comes from all crops. |
Dairy | Farms where more than two-thirds of the total standard gross margin comes from dairy cows. |
Lowground Cattle and Sheep | Farms NOT in the less-favoured areas with more than two-thirds of the total standard gross margin coming from sheep and beef cattle. |
Mixed | Farms where no enterprise contributes more than two-thirds of the total standard gross margin. |
2. Standard Gross Margin
The gross margin of an enterprise is its enterprise output less its variable costs. Enterprise output is revenue adjusted for valuation change, plus transfers out and the value of produce used, less transfers in and purchases. Variable costs are those that can be readily allocated to an enterprise and vary in proportion to the size of the enterprise. Standard gross margin is the Scottish average for the years 1998 to 2002.
3. Size of Business
Since 2003/04, this has been defined in terms of standard labour requirements. Standard labour requirement is equal to 1900 hours of labour per year. The size groups are:
Size Group | SLR definition | Description |
|---|
Small | 0.5 < 2.00 SLR | This represents broadly a one- two person full-time farm. |
Medium | 2 < 3 SLR | This represents broadly a two- three person full-time farm. |
Large | 3 + SLR | This represents approximately full-time farms with more than three people full-time. |
Note: Actual farm employment may be above or below the labour requirements listed in the table above; the values quoted refer to an average position.
On all farms the large size group is defined as 3 SLRs and over.
Where figures for All Sizes are shown, these refer to the above groups weighted together.
4. Weighted Averages
The figures for All Sizes and All Types are weighted averages based on the 2005 census distribution of agricultural holdings in Scotland by type of farming and size of business.