Section A Aggregate Output, Input and Income
Introduction
The aggregate output, input and income figures reflect the estimated value of outputs from, and inputs to, Scottish agriculture over the calendar year.
Results for the UK are published in 'Agriculture in the United Kingdom 2008'. An electronic copy of the UK report is available at: http://statistics.defra.gov.uk/esg/publications/auk/
Aggregate Results
Total Income From Farming ( TIFF) is estimated to have decreased by around 1.8 per cent (£11.9 million) over the previous year before inflation is taken into account. In real terms, this represents a fall of around 5.6 per cent.
Farm Crops
The value of cereal output rose £52.1 million (15.6 per cent), reflecting a higher cereal harvest and high prices in the early part of the year. Most of this increase was in wheat, with a rise of £33.8 million (35 per cent), with barley also increasing by £20.4 million (9.1 per cent).
The value of 'other crops' fell £29.9 million (11.4 per cent) due primarily to decreases in the value of potatoes of £18.0 million (8.6 per cent). The value of oilseed rape also fell by £8.6 million (22.5 per cent).
Horticulture output rose £3.6 million (1.7 per cent). This was mainly due to rises in the value of vegetables of £7.9 million (8.5 per cent). The value of fruit also rose by £5.3 million (8.5 per cent) whilst a decrease of £9.6 million (17.1 per cent) was observed in flowers and nursery stock.
Livestock and Livestock Products
Overall, finished livestock values increased by £94.0 million (14.1 per cent) in 2008, with the majority of this rise coming from the value of finished cattle and calves, which increased by £76.8 million (19.7 per cent). There was also a rise in finished sheep values of £6.9 million or 5.3 per cent. Increases were also observed in the pig sector of £4.0 million (7.1 per cent) and the poultry sector output values also rose by £6.0 million (8 per cent).
The output value of Total Livestock Products (milk and milk products, eggs for food, clipwool and other livestock products) increased by £51.8 million (17.2 per cent). An increase in the average price paid per litre of milk contributed to a rise of £40.1 million (15.3 per cent) in the value of milk and its associated products.
Payments
In 2008, the Single Farm Payment ( SFP) was valued at £431.4 million, an increase of £37.7 million (9.6 per cent) on the 2007 levels, mainly due to a more favourable exchange rate in 2008 (as SFP is initially valued in Euros). It should be noted that in 2008 a higher rate of overall modulation (12.4 per cent) was applied than in 2007 (9.3 per cent). This modulation simply reflects a percentage of SFP being 'top-sliced' and routed into EU and UK agriculture schemes.
Inputs
There was an overall increase in the cost of input items in 2008 of £216.6 million (16.7 per cent) mainly due to rises in feedingstuff costs, fuel and oil and fertiliser and lime of £69.9 million (18.5 per cent), £37.1 million (48.6 per cent) and £72.1 million (50.5 per cent) respectively. The cost of seeds rose by £8.7 million (16.2 per cent) and other machinery expenses increased by £3.0 million (12.7 per cent).
Very few input costs fell in 2008, with Veterinary expenses and medicines falling by 7.7 per cent to £43.4 million, Leasing of Quotas falling by 4.3 per cent to £10.5k and Landlord farm maintenance costs falling by just over 1 per cent to £6.9 million.
Balance Sheet
The amount of interest paid in 2008 decreased by £17.6 million (13.6 per cent) due to lower interest rates and a fall of 4.4 per cent in advances to agriculture. Hired labour costs have also increased by £13.6 million (4.8 per cent) due to increased wage costs for farm workers (particularly full time males) and a higher than average amount of overtime worked in 2008.
Overall the total value of assets is estimated to have increased by £375 million to £15.26 billion. This is mainly due to increases in the value of Land and Buildings, Livestock and Financial Assets.
Total liabilities are estimated to have increased by £15 million to £1.97 billion. The estimated net worth of the industry in 2008 (calculated by subtracting total liabilities from total assets) has increased by 2.7 per cent to £13.29 billion. Net worth as a percentage of total assets is unchanged at 87 per cent.
Additional notes
The aggregate results for 2008 are provisional and are based on the latest information that was available in late 2008. In some cases, full information becomes available later than the publication deadline. The 2008 estimates are, therefore, subject to revision in the next Annual Review in January 2010.
The 2008 forecasts for Scottish agricultural output, input and income are shown in Table A1. Total Income From Farming ( TIFF) measures business profits plus income to workers with an entrepreneurial interest (farmers, partners, directors and their spouses, and most other family members who work on the farm).
Subsidy payments are recorded on an accruals basis ( i.e. amounts that were allocated to a particular year, irrespective of when actual payments were made).