Economic Report on Scottish Agriculture 2011 Edition

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Dairy

FBI decreased by £19,700 (25 per cent) from £78,446 in 2008/09 to £58,476 in 2009/10. Total output decreased by £12,346 (4 per cent), grants and subsidies increased by £6,959 (19 per cent) and total input costs increased by £15,142 (6 per cent).

Livestock output decreased by £10,829 (4 per cent) from £293,754 in 2008/09 to £282,925 in 2009/10. This was due to the large decrease in the value of milk output, which fell by £20,404 (9 per cent) to £214,358. This reflects the fall in milk price between 2008/09 and 2009/10. It can be seen that the average revenue price per litre for farms in the sample fell from 25.6p in 2008-09 to 23.0p in 2009-10. This fall was partially offset by rises in the value of cattle and sheep output, which rose £6,405 (11per cent) and £3,210 (128 per cent) respectively.

Average Single Farm Payment increased by £5,886 (18 per cent) from £33,314 in 2008/09 to £39,503 in 2009/10. Average LFASS payments also increased by £869 (85 per cent), partly due to fact that the average size (in hectares) of the dairy farms in the sample increased by 13 per cent. The overall effect was that total grants and subsidies increased by £6,959 (19 per cent).

Input costs increased by £15,142 (6 per cent) from £267,748 in 2008/09 to £282,890 in 2009/10. The largest increases were for land and building costs where costs rose by £4,299 (17 per cent), labour where costs rose by £3,541 (18 per cent) and machinery depreciation where costs rose by £2,346 (13 per cent).

Average income from diversified activities increased by £829 (58 per cent) from £1,428 in 2008/09 to £2,256 in 2009/10. More information is provided later in the separate section on diversification.

Chart B4(g): Selected outputs and inputs, Dairy

Chart B4(g): Selected outputs and inputs, Dairy

Table B4(g): Average cropping and stocking, output, inputs, and Farm Business Income by type of farm

Type of farm: Dairy

Small

Medium

Large

All Sizes

Number of farms in sample

8

6

7

7

40

38

55

51

2008-09

2009-10

2008-09

2009-10

2008-09

2009-10

2008-09

2009-10

Average size of business ( SLR)

1.6

1.6

2.7

2.8

5.0

5.2

4.1

4.3

Average size of farm (hectares)

84

84

90

98

143

165

125

141

Area of Cereals (hectares)

4

1

9

3

11

9

10

7

Number of ewes

0

0

42

57

34

60

31

52

Number of suckler cows

50

51

75

78

163

163

131

132

Number of dairy cows

50

51

75

78

163

163

131

132

Number of other cattle

63

67

137

140

224

236

186

196

Output Yield per Dairy Cow (ltrs)

5,521

5,696

5,741

6,527

7,064

6,948

6,603

6,705

Revenue Value Pence per Litre

25.20

21.60

25.24

22.68

25.77

23.44

25.59

23.06

Average output £ per farm

Crops: Cereals

1,840

191

4,949

1,699

6,158

5,062

5,345

3,775

Potatoes

0

0

0

0

200

238

135

160

Other crops

2,001

1,706

2,061

1,652

3,706

6,671

3,162

5,041

Total crop output

3,842

1,897

7,010

3,351

10,064

11,971

8,642

8,976

Livestock: Cattle

11,835

22,506

44,485

45,234

68,486

75,379

56,265

62,669

Sheep

0

0

2,648

4,931

2,981

7,037

2,516

5,725

Pigs

0

0

0

0

-3

0

-2

0

Poultry

0

0

1,182

836

9

0

232

167

Milk

69,304

63,322

118,494

115,380

300,843

272,035

234,762

214,358

Other livestock

0

0

12

-28

-30

17

-18

6

Total livestock output

81,139

85,827

166,821

166,353

372,285

354,467

293,754

282,925

Miscellaneous

3,311

2,506

3,580

3,361

7,593

5,059

6,248

4,397

Total Output

88,291

90,230

177,410

173,064

389,943

371,498

308,644

296,298

Subsidy and Payments

13,933

12,862

23,908

27,545

44,025

53,359

36,123

43,081

(of which LFASS)

(719)

(1,149)

(709)

(2,339)

(1,168)

(1,894)

(1,019)

(1,888)

(of which SFP)

(12,367)

(10,097)

(22,736)

(24,502)

(40,953)

(49,469)

(33,617)

(39,503)

Average inputs - £ per farm

Feed

27,021

29,054

53,545

57,340

126,934

126,110

99,433

100,102

(of which home produced)

(631)

(197)

(2,592)

(1,721)

(5,383)

(4,418)

(4,209)

(3,346)

Other livestock expenses

9,586

8,525

13,968

16,808

32,210

35,837

25,672

28,582

Seeds

967

63

692

685

2,237

2,655

1,770

1,934

(of which home grown)

(0)

(0)

(193)

(0)

(0)

(0)

(37)

(0)

Fertilisers

5,168

6,670

11,890

13,987

23,889

25,370

19,071

20,731

Other crop expenses

980

637

1,365

1,124

4,814

4,628

3,638

3,424

Labour

1,455

710

2,900

6,357

27,464

31,818

19,260

22,801

Machinery costs and fuel

15,191

12,941

20,830

21,823

42,660

45,488

34,782

36,646

Machinery depreciation

8,679

8,332

12,073

16,414

21,901

24,124

18,239

20,586

Land and building costs

7,865

7,377

14,475

17,551

32,217

37,700

25,542

29,841

Miscellaneous

11,066

9,069

8,323

9,079

25,607

22,679

20,340

18,243

Total average inputs

87,977

83,379

140,060

161,167

339,932

356,409

267,748

282,890

Diversification Margin

-84

0

597

0

1,965

3,348

1,428

2,256

of which: Diversification Output

991

0

600

0

2,871

6,442

2,183

4,342

Diversification Input

1,076

0

3

0

906

3,095

756

2,086

FARM BUSINESS INCOME

14,163

19,713

61,855

39,442

96,001

71,795

78,446

58,746

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