HC Deb 03 May 1984 vol 59 cc528-9
4. Mr. Farr

asked the Minister of Agriculture, Fisheries and Food what will be the effect on beef cow numbers of recent decisions by the European Economic Community Council of Ministers of Agriculture.

Mr. MacGregor

It is too early to forecast the precise effect of the recent CAP price settlement on beef cow numbers, but specialist beef producers will benefit significantly from the Government's recent decision to double the rate of suckler cow subsidy payable in Great Britain to the maximum amount permitted under Community rules. Those in marginal areas will also benefit from the introduction next year of hill livestock compensatory allowances as a result of the recent extension of the less-favoured areas.

Mr. Farr

Notwithstanding those two useful points, is it not a fact that the recent decision on milk has been a major blow to what one would call the balance of agriculture? Must it not now be the chief concern of my hon. Friend the Minister of State and my right hon. Friend the Minister to seek to restore that balance to try to give some encouragement to those engaged in livestock production in Britain?

Mr. MacGregor

If my hon. Friend is referring to the milk arrangements, I must tell him that much will depend on the reactions of individual producers. I think that they will vary widely. The amount of meat available on the market could have the short-term effect of depressing prices. However, the more stable and better balanced conditions for milk over the period ahead will help to balance the market in the medium to long term. We have taken a number of steps, some of which I have referred to. The retention of the beef variable premium scheme, which is still at a better level than in 1982, the new carcase classification grid and achieving a better balance between cereal and livestock prices will all help.

Mr. Key

Will my hon. Friend also undertake to consider the position of farmers who are excluded from taking advantage of the changes in the arrangements? I refer to the small dairy farmers who, because of their farm agreements, are specifically forbidden to undertake anything but dairy farming and who now have nowhere to go.

Mr. MacGregor

My hon. Friend refers to the impact on the conditions of the development plans. We are examining that matter closely.