A NEW survey has shown that farmers are feeling positive about the industry in spite of uncertainty surrounding the implementation of the Common Agricultural Policy.
The annual Bank of Scotland Agricultural Survey, released yesterday, also showed that farmers have mixed views on the efficacy of the Scottish Government.
The survey, which received a response rate of 16%, found 25% of respondents were either optimistic or very optimistic about the future of agriculture in Scotland, with 79% saying their business was profitable during the last financial year.
However, 30% of farmers said their business was profitable without the single farm payment (SFP), a figure down 6% from the previous year.
Donald MacRae, chief economist for the Bank of Scotland, suggested that this figure reveals just how crucial the SFP is to the industry.
Aside from traditional farming income and SFP, 45% of farmers surveyed were using other income streams to bolster profits.
These income streams typically came from property, renewables and bed and breakfast facilities. Farmers also showed a level of disagreement with the Scottish Government regarding CAP implementation.
The government is currently in a consultation period with the industry regarding the CAP. It is understood its preferred method of division for basic payment rates is splitting Scotland into two.
Of the farmers surveyed, 19% agreed with this, but a majority of 37% preferred splitting the country into three sections. Mr MacRae commented: "Farmers are clearly not supportive of what the Scottish Government propose.
"It's a pretty clear result - it shows at the time of completing the survey, farmers were pretty aware of what was being proposed.
"Farmers would rather have a little more complexity and have three areas."
In general opinion, the Scottish Government scored 34% good or very good, but scored low on its performance on CAP reform and in landlord tenant relations.
Mr MacRae said: "A stronger 2013 harvest has seen an upward trend on the forecast for a profitable 2014. This, coupled with a growing global population and rising demand for food, means that there is a high level of optimism in the sector.
"The relatively high confidence levels being reported by this survey are against a backdrop of uncertainty that surrounds the industry in the Common Agricultural Policy reform.
"It is therefore particularly pleasing to see that farmers are still planning to invest, further reflecting optimism."
l For in-depth news and views on Scottish agriculture, see this Friday's issue of The Scottish Farmer or visit www.thescottishfarmer.co.uk
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