§ Sir Peter Millsasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the outcome of the 1983 annual review of agriculture.
§ Mr. Peter WalkerA White Paper setting out the conclusions of the 1983 annual review of agriculture is presented to Parliament today. The volume of net agricultural production rose by 10 per cent. in 1982, principally because of the cereals harvest which set a new record. Estimates of self-sufficiency show that over the past two years we produced 62 per cent. of our total food needs, or 76 per cent. in the case of indigenous-type food.
While agricultural incomes substantially recovered, they have not recovered in real terms to the levels prior to the decline in farm incomes that started in 1977. Between the mid-1970s and 1980 there was a drop of more than 50 per cent. in farming income in real terms. But the improvement in the last two years has brought about a substantial recovery on this position. The level of bank borrowing increased again, but this was connected with a 17 per cent. increase in the volume of new fixed investment.
The improvement in the proportion of the domestic market enjoyed by British products and the improvement in our volume of exports has made a very real contribution to our improved balance of payments. The improvement in productivity have undoubtedly benefited the consumer and, as the latest figures for food price increases show, food prices have increased over the last 12 months by a lower amount than at any time in the last 15 years.
The White Paper shows that Government policies and the industry's excellent productivity record have contributed to continued recovery. This is good news for all who work in British agriculture, for those employed in associated industries and, indeed, for the economy as a whole.