<b>Capital Investment – 2023 Farmer Intentions Survey Briefing Note</b>

<p dir="ltr">Key Findings: </p><p dir="ltr">• Capital investment in farm businesses was positively related to farm turnover and profit. </p><p dir="ltr">• Investment was also related to socio- economic factors, notably age and whether a successor was identified, with younger farmers and those planning for succession more likely to report having increased investment. </p><p dir="ltr">• The proportion of farmers who reported having increased investment was above average in traditionally strong agricultural regions, Lothian, Fife, Scottish Borders and North- East Scotland, and below average in Shetland, Na h-Eileanan an lar, and among respondents who identified as crofters. </p><p dir="ltr">• Changes in investment were also associated with the reported influence of external market, political and regulatory factors (prices for fertiliser; feed; energy; commodities; labour availability; land availability; subsidies; regulations; and EU- exit). Those reporting that their business had been significantly impacted by changes in external factors were more likely to report a change in investment, either an increase or a decrease. </p><p dir="ltr">Takeaways: </p><p dir="ltr">• Associations between investment, age and succession status highlight the importance of farm family life-cycle factors to future investment. Providing support for succession planning could help to increase investment. </p><p dir="ltr">• Lower reported investment among islands respondents likely reflects constraints within these communities, identified by prior research </p><p dir="ltr">• The variable (positive and negative) response of farmers investment to changes in external factors requires further investigation.</p>