Hill Farming (Hansard, 21 November 1990)

§ 5. Mr. Buchanan-Smith
To ask the Secretary of State for Scotland when he expects to complete the autumn review of hill farming; and if he will make a statement.

§ 9. Mr. Kirkwood
To ask the Secretary of State for Scotland when he next plans to meet the Scottish National Farmers Union to discuss the future of hill farming in Scotland.

§ Mr. Rifkind
I met the farmers' unions on 23 October to discuss the economic situation in the hills and uplands. We are considering the arrangements that will apply to next year's hill livestock compensatory allowance scheme and will announce details as soon as possible.

§ Mr. Buchanan-Smith
Will my right hon. and learned Friend acknowledge that farmers in the hill and upland areas have suffered a particularly rough autumn, with a big fall in prices for store lambs and calves? Does he agree that that has serious implications not only for the livelihood of those who work in the area but for the viability of communities in such areas? Will he consider increasing the HLCAs to the maximum allowed, thereby compensating for the heavy losses incurred in this important sector of Scottish agriculture?

§ Mr. Rifkind
My right hon. Friend is certainly correct that, both this year and last, there have been significant falls in income, for the reasons to which he referred, although that follows two years during which there were considerable improvements. This is a difficult situation and that is why Agriculture Ministers are considering the whole question of the level of HLCAs.

§ Mr. Kirkwood
Does the Secretary of State accept that the latest estimates suggest that net farm income has dropped by 20 to 30 per cent. in the current financial year? That constitutes a crisis in the upland farming sector in Scotland. Will the right hon. and learned Gentleman heed carefully the words of the right hon. Member for Kincardine and Deeside (Mr. Buchanan-Smith) and use the HLCA payments, which he has it in his gift to increase by £20 for a hill cow and £4 for a hill ewe? That help is essential to keep farming communities in Scotland alive.

§ Mr. Rifkind
Farm incomes in the sector fluctuate significantly from year to year. In 1987–88 and 1988–89, they rose in real terms by 45 per cent. and 16 per cent. respectively. But I do not seek to conceal from the hon. Gentleman or the House the fact that, for the reasons that he suggested, this is a difficult year.

§ Mr. Macdonald
May I support the call by the right hon. Member for Kincardine and Deeside (Mr. Buchanan-Smith) to increase the allowances to the maximum? Does the Secretary of State accept that 25 per cent. of any increase would be funded by the EEC and only the remainder would have to be met by the United Kingdom Government? Such an increase is necessary to help sustain the morale of communities that are facing considerable hardship.

§ Mr. Rifkind
The hon. Gentleman is correct about the funding arrangements. I acknowledge that the health and viability of the hill farming sector are important not only to those who work in the sector but to the viability of the rural economy as a whole, especially in Scotland where more than 90 per cent. of land is in the less-favoured areas.

§ Sir Hector Monro
Does my right hon. and learned Friend agree that, although it has been a particularly difficult autumn in the livestock sector, the maximum increase in the suckler cow subsidy was a substantial help, as was the advance payment of sheep premium? However, will my right hon. and learned Friend do everything possible to help hill farmers, bearing in mind, as my right hon. Friend the Member for Kincardine and Deeside (Mr. Buchanan-Smith) said, their importance to the rural community?

§ Mr. Rifkind
My hon. Friend is correct. More than £20 million has been made available to specialist beef producers under the suckler cow premium. The increase to which my hon. Friend referred was worth £1.6 million to farmers in Scotland, where over 90 per cent. of the suckler herd is located in less-favoured areas.