Understanding the Bigger Picture: Join the Scottish Farm Business Survey
As farmers we are听facing a听once in a generation听period of adjustment.听The most recent听set of听results from the Scottish Farm Business Survey (SFBS) show that average Farm Business Income (FBI), or net profit,听for听the sample of听400听commercial听farming businesses in Scotland听fell by more than 50 per cent in听the last set of published figures,听compared to the previous year鈥檚听ten听year听high.听听
That headline figure听at the time听(March 2025)听caused concern, particularly at a time when many producers are experiencing strong livestock prices. However, these results reflect the crop year to May 2024 and therefore听lag behind听more recent market improvements. Even so, they underline a fundamental truth听about running a farming听business: volatility is now a defining feature of farm听business management and performance.听
And听so听with that听context,听there is听real value in听stepping back听from the day to day听to examine the bigger financial picture for your business.听It can be hard to step away from听daily routines and duties, book time in the office or at the kitchen table, dig out the accounts,听run some reports from the bookkeeping,听and prioritise some strategic financial planning.听However,听it is important to take time to evaluate your businesses performance.听听
Yet听understanding how to look at the听trends听in your business听over several years 鈥� rather than relying solely on annual tax accounts 鈥撎齝an help you be better informed to make听strategic听decisions.听Looking at multi-year trends in听your听costs,听your overall farm听output and听your听profit,听can give you the听real evidence听of how听your听business is performing and where corrective action may be听required.听It can also help with听demonstrating听the听creeping听rises in input costs which erode margins听over time in a听stealthier听manner.听听
Participation in the SFBS can听help to support听this understanding听for your business. By听joining the 鈥淪urvey鈥澨齛nd sharing your farm accounts听data听with听the听team at SAC Consulting,听you will听receive detailed management听account type听reports that allow听you to compare your听year on year听financial performance. You will also receive听a听benchmarking听report听against businesses听similar in size and type to your own.听The service is free, requires about 2 hours of your time, with a little more in your first year. Your data听will be听anonymised prior to being sent to Scottish Government, and that听data听will be听utilised for statistical purposes only.听听
The听external reference point听of independently verified financial reporting听can听be听reassuring听for your business, or it can act as听a discussion point听for change听in your business.听Solid financial evidence can also听help听to听ground听occasionally challenging听family or partnership听conversations, rather than听individuals'听perceptions听based on current听market听prices听or the last trip to market.听听
The survey data is equally important beyond听your听farm gate. SFBS results听and data听are used extensively by Scottish Government and research institutions to model the economic impact听and viability听of policy change, and potential scheme design.听听
At a time of ongoing uncertainty around future support payments, climate and conditionality requirements, and recent changes to inheritance tax reliefs, this independently gathered evidence matters听for farm businesses.听The dataset helps to听shape how policy is designed,听and听this in turn shapes the impact of policy change on听individual businesses.听听
We ask you for a digital record of your receipts and invoices from your farm accounts, and about two hours of your time to answer questions. You are听allocated听to one of the members听in the SAC Consulting听team, and they take your anonymity seriously.听听
Its听free to join, and you get back in return:听听
- The farm business report: includes a net worth assessment of the assets in your farm business completed at yourfinancial year听end. You can use this to help guide any succession planning discussions you are having with your accountant. You also get a set of detailed management accounts that allows you to compare your costs and productivity year on year for up to three years.听听
- 2.The Individual performance benchmark report:this comes out at the end of March sometime after your accounting year end. However, it gives you the opportunity to compare your farm鈥檚 figures to other businesses like yours, so you have an external comparison. This can reassure you that you are on the right track or give you something to aim for in any changes that you need to make to your system.听听
You can find out more about the Scottish Farm Business Survey听from one of our听participants听here.听听听
Sascha Grierson, Principal Consultant, Sascha.Grierson@sac.co.uk
Posted by SAC Consulting on 16/01/2026
