The National Sheep Association (NSA) says that positivity is needed after report shows “grim” sheep profit figures.
The Scottish Government’s Farm Business Survey has revealed an 87% drop in lowland cattle and sheep farm income for 2023/24, showing the cost pressures that farms have been facing in recent times, says the NSA.
Rising costs are affecting the bottom line
NSA Scottish Region chair Peter Myles notes that although higher livestock prices are “pleasing to see”, rising costs and productivity challenges have plagued the bottom line for farmers.
The Farm Business Survey has also revealed that Farms in Lesser Favoured Areas (LFA’s), traditionally a stronghold for sheep, had also struggled. For LFA sheep farms, no farms in the survey made a profit without support payments, down from 8% of farms in the previous year.
“To run a business, you must have confidence, and the current lamb trade should be a green flag to those continuing and entering into the industry.”
Peter Myles, Scottish Region chair
Myles commented: “The survey tells a familiar tale, that after rental figures and manual and managerial labour are imputed into margins, farm businesses struggle to wash their face.
“However, with flock contraction seen in Scotland and the wider UK, there is a growing feeling of jeopardy within the sheep sector, made worse by various land use policies that hinge on destocking upland areas.
“Hills are empty that once had flocks of hundreds or thousands and the worry is that the skills and culture disappear when the sheep do.
“But to run a business, you must have confidence, and the current lamb trade should be a green flag to those continuing and entering into the industry. With quick turnovers and low fixed costs, sheep farming is often a good step on to the farming ladder. Let’s hope those with profitable systems aren’t hampered by anti-farming policies.”
