§ Mr. FlynnTo ask the Minister of Agriculture, Fisheries and Food how much has been paid in subsidy to farmers for growing flax and hemp during each of the past five years. [135503]
§ Ms QuinThe total amount of subsidy paid in the last five UK Exchequer financial years was as follows:
£000 Flax Hemp 1995–96 10,951 24 1996–97 11,614 621 1997–98 11,796 1,788 1998–99 10,681 1,173 1999–2000 10,011 233 All of the hemp subsidy was paid direct to farmers. For flax there are three payment scenarios. The normal arrangement is for 25 per cent. of the aid to be paid to flax contractors who have concluded cultivation contracts with farmers whereby the farmers renounce ownership of their crop. The remaining 75 per cent. of the aid is paid to processors who have concluded contracts with the contractors.
Under the second method 100 per cent. of the aid is paid to contractors who have the straw processed on their behalf. Under the third method 25 per cent. of the aid is paid direct to farmers who have contracts with processors and the remaining 75 per cent. of the aid is paid to the processor.
Under all three methods, the amount of aid passed on to farmers for growing the flax is dependant on the contractual arrangements they have concluded with either the contractors or the processors.