§ Mr. Teddy Taylor
asked the Minister of Agriculture, Fisheries and Food what information he has about the average rate of interest charged to German farmers purchasing agricultural land on the Continent of Europe and in the United Kingdom, respectively; and if he will make a statement.
§ Mr. Wiggin
Interest rates throughout Europe vary considerably. It is not possible to produce an average rate of interest for the purchase of land in Europe which has any meaning.
A German farmer buying land in Germany would currently pay loan interest of 11.5 per cent. to 13.5 per cent. Where he is buying land adjoining his own, he could obtain a 3 per cent. loan from the state with capital repayments of 2.75 per cent. a year.
A German farmer purchasing agricultural land in England and Wales might obtain a loan from the Agricultural Mortgage Corporation for periods from five to 40 years at a fixed rate of 15½ per cent. or at a variable 80W rate, reviewed quarterly, of 16½ per cent. The corporation will not consider loans to foreign nationals who retain their foreign domicile.