An 87% drop in lowland cattle and sheep farm income for 2023/24 in the Scottish Government’s Farm Business Survey shows the cost pressures farms have been under in recent times, says the National Sheep Association (NSA).

Higher livestock prices are pleasing to see, but rising costs and productivity challenges have plagued the bottom line in the government’s latest annual reckoning, said Peter Myles, NSA Scottish Region Chairman.

The survey also reveals that Farms in Lesser Favoured Areas (LFA’s), traditionally a sheep stronghold, had also struggled. For LFA sheep farms, no farms in the survey made a profit without support payments, down from 8% of farms in the previous year

Mr Myles says: “The survey tells a familiar tale, that after rental figures and manual and managerial labour are imputed into margins, farm businesses struggle to wash their face.

“However, with flock contraction seen in Scotland and the wider UK, there is a growing feeling of jeopardy within the sheep sector, made worse by various land use policies that hinge on destocking upland areas.

“Hills are empty that once had flocks of hundreds or thousands and the worry is that the skills and culture disappear when the sheep do.

“But to run a business, you must have confidence, and the current lamb trade should be a green flag to those continuing and entering into the industry. With quick turnovers and low fixed costs, sheep farming is often a good step on to the farming ladder. Let’s hope those with profitable systems aren’t hampered by anti-farming policies.”