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Farm Business Incomes in Scotland, 2007/08

Farm Business Incomes in Scotland, 2007/08. David Cruickshank. Content. Introduction & Background Relationship between FBI and NFI Impact of definitional differences Comparisons of FBI and NFI by farm tenure, type and size International Comparisons Diversification Conclusion.

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Farm Business Incomes in Scotland, 2007/08

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  1. Farm Business Incomes in Scotland, 2007/08 David Cruickshank

  2. Content • Introduction & Background • Relationship between FBI and NFI • Impact of definitional differences • Comparisons of FBI and NFI by farm tenure, type and size • International Comparisons • Diversification • Conclusion

  3. Introduction and Background • Public consultation between Nov ’06 & Sept ’07, aimed at producing more relevant farm income figures • Income from entire farm business • Rest of UK moved away from NFI to FBI • Changes to FAS – e.g. first time data collected on income from diversified activity

  4. Relationship between FBI and NFI • NFI:represents the return to the farmer and spouse for their manual and managerial labour on the tenant-type capital in the farm business (i) Return to farmer and spouse alone (ii) Tenant farming basis, even for o/o (iii) Covers only agricultural activity

  5. Relationship between FBI and NFI FBI: (i) Return to all with entrepreneurial interest in farm business by excl imputed unpaid labour (ii) Treats tenure as is, by excl imputed rent and incl ownership income (iii) Includes net interest payments, reflecting the actual cost of loans and interest earned (iv) Includes income from diversified activities to reflect all income from farm business

  6. Impact of definitional differences

  7. Impact of definitional differences (cont.)

  8. Comparisons of FBI and NFI by farm tenure

  9. Comparisons of FBI and NFI by farm tenure (cont.)

  10. Comparisons of FBI and NFI by farm type

  11. Comparisons of FBI and NFI by farm type

  12. Comparisons of FBI and NFI by farm size

  13. International Comparisons UK comparison of FBI by farm type, 2007/08

  14. Diversification • Diversification defined as: 'the entrepreneurial use of farm resources for the purpose of producing non-agricultural commodities'. • First time info on diversified activities have been collected. • Incomplete data for some farms – working to improve quality in 2008/09 survey.

  15. Diversification (cont.)

  16. Diversification (cont.)

  17. Conclusion • FBI is now headline measure of incomes and included in FIS publication. • FBI provides more relevant & accurate estimate of income at farm business level. • NFI still published to preserve trends. • FBI includes info on diversified activity for first time. • FBI more closely aligned to TIFF.

  18. Any Questions?

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