HC Deb 15 October 2002 vol 390 cc568-71W
Llew Smith

To ask the Secretary of State for Environment, Food and Rural Affairs what incentive schemes are in place to(a) encourage farmers to avoid over-production, (b) increase the sustainability of farmers, (c) to make alternative use of surplus agricultural land and (d) extend the programme of crop growing for energy production. [73557]

Mr. Morley

The Government is committed to moving rapidly towards a more sustainable, competitive and diverse farming industry. Key to this is reform of the Common Agricultural Policy (CAP), where we want to phase out market price support and production controls, reduce direct payments and decouple them from production. We are also seeking to shift towards the CAP's "second pillar", expanding the opportunities available for targeted support for rural development and agri-environment schemes. In this context, we welcome the proposals brought forward by the Commission as part of the CAP mid-term reviews.

In England, the schemes covered by the England Rural Development Programme play a significant role in delivering the Government's objectives for sustainable production and land management, including those listed in the question. These schemes are the Environmentally Sensitive Areas Scheme, the Countryside Stewardship Scheme, the Organic Farming Scheme, the Hill Farm Allowance, the Woodland Grant Scheme, the Farm Woodland Premium Scheme, the Rural Enterprise Scheme, the Vocational Training Scheme, the Processing and Marketing Grant and the Energy Crops Scheme. The budget for the Programme is £1.6 billion over the period 2000–2006. Similar schemes specific to Welsh needs operate within the Rural Development Plan for Wales, the total budget for which is £450 million over the same period.

In addition, there are incentives under some of the CAP subsidy regimes to limit production, for example through livestock extensification and some schemes under the "national envelopes".

The Government is working with stakeholders to develop and deliver a new strategy for sustainable farming and food in England, to be published in the autumn, which may include further measures of this kind. The devolved administrations are pursuing their own strategies. For example, the strategy for agriculture in Wales, "Farming for the Future", prepared in association with industry and countryside interests, was published last November.

Mr. Breed

To ask the Secretary of State for Environment, Food and Rural Affairs how many farmers have been declared bankrupt per month in each of the last 10 years; and if she will make a statement. [74188]

Alun Michael

Data are available for England and Wales only on a quarterly basis. The level of farm bankruptcies and insolvencies tends to be in the order of a few hundred a year (as at June 2002 there were approximately 210,000 main and minor agricultural holdings1). The annual number of total insolvencies in the last five years (1997–2001) was 240 which is nearly 40 per cent. lower than the average number in the previous 5 years (1992–1996). In 2001, the total number of insolvencies rose by 14 per cent. Quarter 1 figures are available for 2002 and show a 9 per cent. increase over the same period for 2001.

Table 1 Number of Quarterly Bankruptcies in the Agriculture and Horticulture Sector: England and Wales 1991–2002
Year Quarter Individual Bankruptcy Orders2 Company Insolvencies3 Total Insolvencies4
1991 Q1 68 32 100
Q2 64 37 101
Q3 53 27 80
Q4 81 39 120
1992 Q1 89 38 127
Q2 89 46 135
Q3 62 57 119
Q4 73 50 123
1993 Q1 86 41 127
Q2 63 42 105
Q3 63 27 90
Q4 65 47 112
1994 Q1 60 63 123
Q2 70 35 105
Q3 43 35 78
Q4 58 33 91
1995 Q1 80 40 120
Q2 65 21 86
Q3 36 17 53
Q4 37 21 58

Jan Feb Mar Apr May Jun Aug Sep Oct Nov Dec Month unknown Annual total
1989 7 7 2 3 3 9 7 6 8 8 6 6 72
1990 10 4 7 8 8 6 5 5 9 5 3 6 76
1991 3 7 12 13 2 3 6 7 8 7 5 4 77
1992 5 10 9 4 3 5 8 6 5 4 5 8 72
1993 9 4 6 8 7 8 10 3 8 4 8 3 78
1994 3 6 9 6 5 7 11 1 8 2 4 4 1 66
1995 7 7 6 5 4 4 1 4 7 4 6 2 57
1996 8 5 3 11 7 4 4 3 6 4 2 8 65
1997 3 8 3 5 4 7 3 5 9 3 5 4 59
1998 4 2 5 13 7 5 4 2 6 6 8 10 72
1999 5 2 4 5 12 6 5 7 6 3 6 9 70
2000 7 8 3 4 4 6 5 4 5 6 5 2 59

Source:

Office for National Statistics

Table 1 Number of Quarterly Bankruptcies in the Agriculture and Horticulture Sector: England and Wales 1991–2002 Year Quarter Individual Bankruptcy Orders2 Company Insolvencies3 Total Insolvencies4 1996 Q1 45 23 68
Q2 39 17 56
Q3 54 27 81
Q4 30 22 52
1997 Q1 42 13 55
Q2 46 10 56
Q3 37 17 54
Q4 30 11 41
1998 Q1 42 14 56
Q2 29 16 45
Q3 39 23 62
Q4 47 12 59
1999 Q1 54 22 76
Q2 50 14 64
Q3 45 16 61
Q4 34 23 57
2000 Q1 53 18 71
Q2 35 13 48
Q3 52 10 62
Q4 33 26 59
2001 Q1 44 22 66
Q2 48 25 73
Q3 44 20 64
Q4 47 23 70
2002 Q1 42 30 72

Notes:

1Defra statistics

2Figures for individual insolvencies comprise bankruptcy orders and individual voluntary arrangements under the Insolvency Act 1986 and deeds of arrangement under the Deeds of Arrangement Act 1914.

3The figures for company insolvencies are made up of compulsory liquidations (winding-up orders made by the courts) and creditors' voluntary liquidations registered at Companies House.

4Individual Bankruptcy Orders plus Company Insolvencies

Source:

Department for Trade and Industry

Mr. Breed

To ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of trends in farmers' suicides in the past 12 years; and how many such suicides have taken place per month in the last 12 years. [74189]

Alun Michael

There were the following number of farmers' and farm workers' deaths classified as suicides per month in the 12 years 1989–2000 in England and Wales:

Figures for 2001 are not yet available.

In the Department of Health's "National Suicide Prevention Strategy for England", published in September 2002, farmers (and agricultural workers) are identified as a high risk occupational group. A suicide prevention strategy for England has been formulated by an expert advisory group through consultation with mental health professionals, researchers, survivors of suicide attempts, the voluntary sector, and others with relevant experience. The target is to reduce the death rate from suicide and undetermined injury by at least a fifth by the year 2010. The implementation plan will be the responsibility of the National Institute for Mental Health in England (NIMHE).

Prior to this, the Government launched the Rural Stress Action Plan in 2001 with the aim of working in partnership to deliver support to make a difference to those in distress in rural areas. Its objectives are:

  1. 1. building on existing partnerships, and initiate new ones where there is little provision, to bring together organisations offering a range of types of support to rural people;
  2. 2. direct assistance to farming families, both financial and practical; and
  3. 3. effective publicity to encourage those in need to make contact with helping agencies.

I recently announced the extension of the Plan for a third year, 2002–03; in total nearly £1m of public funding has been provided. Its existence proved of great value during last year's outbreak of foot-and-mouth disease. We hope that this modest funding will go a long way to help convey the message that advice and information is available to those suffering distress in rural areas.