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Farming profits set to hit new high in Scotland
Agricultural industry profit increases in 2025
Early estimates suggest 2025 could be a record-breaking year for Scottish farming, with total income from farming (TIFF) reaching around £1.5 billion.
That’s the official way of measuring profit across the industry – basically what’s left after costs are taken off output – and it’s looking strong. So what’s behind the boost?
Higher output combined with fairly steady costs compared to 2024 meant better profit margins overall. The value of agricultural output is up 8% to £5.1 billion, helped by strong commodity prices—especially for cattle, milk and potatoes.
Costs are estimated at about £4.1 billion. While many expenses have eased since their peaks in 2022 and 2023, there are still some pressures, particularly around labour and seed.
Beef continues to lead the way as Scotland’s biggest agricultural sector, with a record value of £1.1 billion in 2025 thanks to firm market prices. The dairy sector also had a solid year, with higher production and strong prices lasting through to the end of 2025. Sheep farmers benefited too, as rising livestock prices pushed up the value of their output.
It was a mixed picture in cropping. Potato production had a great year, with the sector worth over £0.4 billion. Cereal output dropped for the second year running overall, but there was a bright spot for Scottish wheat – higher yields helped boost output despite lower prices.
Support payments remain an important part of the picture, making up around 40% of total farming profit in 2025. Looking at the longer term, they’ve accounted for about 64% of profit on average over the past decade.
Want to dig deeper?
You can read the full report and data tables here:
https://www.gov.scot/publications/total-income-from-farming-estimates-2025
Note: These are initial estimates for 2025, and figures may be revised as more data becomes available.
