In the survey, farmers have recorded the highest level of optimism and the second-highest level of prosperity in 12 years. Those engaged in arable farming reported the most positive results, with 91% stating their business was profitable in their last complete financial year, a rise of 16% on the previous year.

Only hill farming reported a fall in profitability, dropping 19% to 65% of farms. Across all farm types, 82% recorded a profitable financial year.

Investments made in 2007 exceeded forecasts by about a third, with plant and equipment being the main beneficiary.

Plans suggest an expansion in the arable and dairy sectors, while beef, sheep and pig farming numbers are likely to contract.

Source: The Herald