HC Deb 02 March 1964 vol 690 cc910-3
29. Mr. Shinwell

asked the Minister of Agriculture, Fisheries and Food what were the average earnings of farms up to 50 acres and between 51 and 150 acres in the last five years, respectively.

Mr. Soames

My information on farm incomes in England and Wales is obtained from a sample of farms through the Farm Management Survey carried out by agricultural economists at the universities. As the answer requires a number of figures, I will, with permission, circulate them in the OFFICIAL REPORT.

Mr. Shinwell

Would not the right hon. Gentleman agree that the figures in his possession indicate that the conditions of small farmers, those with from 50 to 150 acres, are at present far from satisfactory? Are not those farmers very discontented? Although the Conservative Party claim to be the friends of the farmers, does this not demonstrate that after 12 years in office the Conservative Government have hopelessly failed?

Mr. Soames

As the right hon. Gentleman will be aware, the commodity which has caused the chief trouble, particularly in the case of the smaller farmers, is milk? By virtue of the fact that milk production has been increasing faster than has the consumption of liquid milk, the pool price—that is, the price received by the farmer—has been eroded. It will also not have escaped the notice of the right hon. Gentleman that with regard to the situation today the balance is much healthier than it was some years ago. With regard to the confidence which the agricultural industry feels in the present Government, I am sure the right hon. Gentleman will be aware that there is a buoyant and thriving demand for farms of all sizes, including the sizes he has enumerated, on the market at the present time.

Mr. Pearl

Is the right hon. Gentleman aware that from 1947, from the beginning of the production drive, up to 1951–52 the real incomes of farmers went up by 20 per cent. and that production went up by 20 per cent? But that is not the situation now, and there is anxiety in the farming community. Why are farmers angry if everything is satisfactory?

Mr. Soames

The hon. Gentleman has referred to years in which, as he well knows, all the emphasis had to be on production at almost any cost. There is a totally different situation today compared with what it was then. Indeed, with all the difficulties that we are facing, I believe that the agricultural industry has a considerable degree of confidence in the steps that we are taking.

Mr. Pearl

Then, why is it that N.F.U. branches all over the country are angry about the Government's policy?

Mr. Soames

I am aware that N.F.U. branches all over the country are demanding increased prices at this Review. I do not think it is the first time this has happened.

The following is the information:

Average Net Income per farm for Identical Samples of Farms in England and Wales
Farms of 50 acres and under Farms of 51–150 acres
£ per farm
1958 580 1,033
1959 526 902
1959 537 897
1960 610 992
1960 611 985
1961 623 1,088
1961 676 1,098
1962 665 1,145
30. Mr. Shinwell

asked the Minister of Agriculture, Fisheries and Food what is the amount required in the next three years to bring average farm incomes up to the level of additional costs in relation to prices of farm products.

Mr. Soames

It would be impossible to speculate with any accuracy about changes in farm costs, prices, and incomes over the next three years. The Annual Reviews will provide the opportunity of taking into account all the relevant features of the economic condition of agriculture year by year.

Mr. Shinwell

Does this really mean that the Minister can hold out no hope for these farmers who are now complaining about their conditions and about their average incomes? Is that what it means—that the Minister can offer no hope to them? Is that the best he can say? Although we are not accusing him of seeking to make the farmers' conditions worse than they are, nevertheless will he not agree that this is the fault of the Government as a whole and that they can do nothing for the farmers and that nothing will be done until a Labour Government come to power?

Mr. Soames

The right hon. Gentleman is putting a completely false interpretation on what I said. He said "Does it mean so-and-so?" It means what it says and nothing more. What the farmers are waiting for is not his interpretation of my words but what will happen at the forthcoming Price Review.

Mr. Snow

The right hon. Gentleman talks about there being a big demand for small farms. Who is creating this demand? Is it real farmers or speculators?

Mr. Soames

Certainly there is a considerable demand, not only for farms to purchase but also on behalf of potential tenants for the farms.