Scottish farm profits at £1.5bn record in 2025

Scottish farmers enjoyed a year of record profits in 2025, according to first estimates from the Scottish government, reflecting the dominance of a buoyant beef trade.

Total income from farming (Tiff) is the official measure of the sector’s profit, drawing on data from the June agricultural census,  the Farm Business Survey, and other bespoke surveys.

See also: Tight margins for UK beef sector as cattle prices decline

Initial estimates for 2025 put Tiff at about £1.5bn – an increase of about £300m (28%) on the 2024 figure – made up of £5.1bn worth of farm output, plus £589m of farm support payments, less around £4.1bn of costs.

This compared with a five-year low for Scottish farm profitability in 2023, when Tiff was recoded at just £783m, as market prices fell, while inputs were driven higher due to the war in Ukraine.

Beef impact

Scotland’s largest agricultural sector is beef, which accounted for almost two-thirds of livestock sector output in 2025, worth an estimated £1.1bn – a record value, despite a 5% fall in the national herd, as market prices remained strong.

“The value of the milk sector also increased (by 9%) as production increased and prices remained high until the end of 2025,” said a spokesman.

Rising livestock prices also drove increased values for sheep, while in the cropping sectors the value of potatoes rose to over £430m.

Total cereal crop output, however, fell for a second year, dropping back to pre-2022 levels .

Barley led the downturn, while wheat actually had a “great year”, with greater volumes outstripping price declines.

Meanwhile, support payments across the whole of Scottish farming accounted for 40% of profit, down from 53% in 2024 and significantly below the 64% average over the past 10 years.

Reaction

The better financial performance has been welcomed by NFU Scotland (NFUS), which noted the impact of stronger output values across key sectors such as beef, milk and potatoes, alongside relatively stable costs.

“However, these headline figures mask continued volatility and ongoing pressure from input costs, as well as significant variation between sectors,” said a spokesman.

“It is also important to recognise that support payments still account for a substantial share of farm profitability, underlining their continuing importance to farm business viability.”

NFUS added that, while stronger market returns are encouraging, they are not guaranteed.

“Stability, fair supply chains and a clear policy framework remain essential to sustaining a resilient and productive Scottish agricultural sector,” said the spokesman.