This work developed an index of short-term and long-term viability to understand and explain how change has occurred in Scottish agriculture from 2000-2010.
The proportion of viable farms in the sample increased from 40% in 2000 to over 60% in 2010. If a farm is both short- and long-term viable in one year, it has a high probability of remaining in that state for the next year. Non-viability was found to be driven by lower size, the farm being a tenancy rather than owner-occupied, upland based operations and having higher nature value farming status.
The briefing argues that viability should be a headline indicator for policy makers as it captures the changing income and management of resources at farm level. Changes to the CAP will affect short- and long-term income prospects and further work at SRUC will model the reform scenarios that were agreed in June 2013 with respect to viability.
Download the Research Briefing
Assessing Farm-Level Viability in Scotland