§ Mr. Biffenasked the Minister of Agriculture, Fisheries and Food what would be the estimated percentage addition to net farm income if the green pound were aligned to current inter-EEC exchange rates.
§ Mr. BishopIt is difficult to make worthwhile estimates of this kind. If the United Kingdom representative rate was adjusted downwards to the present market value of the pound, the sterling value of Community institutional prices would rise by about 20 per cent. But the effect of such a change on the returns actually received by farmers and the price paid for feeding stuffs and store cattle is uncertain since these are in large measure determined for most commodities by market circumstances. The effects on producer returns would also depend on any consequential decisions taken by the United Kingdom Government on guaranteed prices and on the monthly target prices for beef.