Nearly half of Scots farmers failed to make enough money to pay themselves the minimum wage last year, new figures have revealed.
According to the latest farm business income report, 43% fell below the minimum agricultural worker pay packet in the 2012/13 financial year.
Horrendous weather – many farmers were forced to rip up crops out of the ground – and poor prices for produce resulted in a 34% drop in the average farm income to £30,000.
The reduction came against a backdrop of increased costs – up £6,000 for the average business to £37,000.
According to the report, without additional sources of income from areas such as farm shops and subsidy support from the European Union’s Common Agricultural Policy (Cap), the average farm business made a loss of £22,000 from farming activities last year.
Beef and sheep farmers were the worst hit, suffering a 57% drop in farm incomes, while the average Scottish dairy farm suffered a 47% income cut to £45,000.
The National Farmers Union for Scotland said the “deep and painful” figures would come as no surprise to those in the industry.
The union’s head of policy, Jonnie Hall, said the outlook for the 2013/14 year was brighter, but farmers would feel the aftermath of 2012 for years to come.
He said it was vital the Scottish Government ensured all Cap support was targeted at active and productive farmers to ensure they were able to stay in business. His comments come days after the Scottish Government closed a consultation on how to implement changes to the way Cap money is distributed in Scotland.
Rural Affairs Secretary Richard Lochhead last night said the government was still waiting for clarity from Westminster on a number of key pointers before it can announce its Cap plans.
This includes a decision on coupled support – extra money paid to help beef farmers – and the percentage of Scotland’s Cap budget that can be targeted to that area. Scotland is currently allowed to use 8% of its budget for coupled support, however it is hoping for an increase to 13%.
The farming industry hopes that extra money will support sheep farmers and beef producers.
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