§ Miss McIntoshTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the impact of the Common Agricultural Policy reform package of 26 June on tenant farmers in the UK.[143553]
§ Mr. BradshawNo specific assessment has been undertaken of the impact of the CAP reform proposals on tenant farmers. However, we have assessed the impacts of the proposals on farming and other businesses generally in England, including an analysis by farm activity, and a summary of these is included in the Regulatory Impact Assessments which have been lodged in the House Libraries. An additional analysis looking at the impact on distribution of payments of various options for operating the Single Payment Scheme has also been carried out and a copy has been placed in the Library of the House. Our economists are continuing to analyse the potential impact of different methods of making the Single Payment.
For the first time, the bulk of farm subsidy will not be dependent on what or how much farmers produce. As with the previous system, subsidy would be paid to the farmer, whether owner or tenant, will continue to hold the subsidy entitlement. Tenant farmers, along with other farmers, will therefore be free to produce what they judge the market wants and so be better able to cut costs and increase profits. Farmers will also be freed from some of the bureaucracy associated with the subsidy schemes which are being replaced by the new decoupled subsidy.
§ Mr. WillsTo ask the Secretary of State for Environment, Food and Rural Affairs what the total cost of the common agricultural policy in the United Kingdom was to(a) consumers and (b) taxpayers; and what the costs were to (i) United Kingdom taxpayers and (ii) consumers, broken down by agricultural 254W commodity supported by the common agricultural policy in the most recent year for which figures are available.[144459]
§ Mr. BradshawThe consumer cost of the CAP can be estimated by examining the difference between UK and world prices for agricultural food products. Our latest provisional estimates for 2002 show a cost of the CAP to consumers of around £3.3 billion.
The notional taxpayer contribution to CAP expenditure can also be estimated though, in practice, UK taxpayers contribute to the whole EU budget rather than to specific components. We estimate that, in 2002, this notional cost to UK taxpayers of expenditure under the CAP was around £3.5 billion.
The following table shows an approximate breakdown of consumer support between agricultural commodities. These estimates have, in the main, been compiled using the methodology utilised by the OECD to produce their estimates of the Consumer Support Estimate. It should be noted that the aggregate estimates will be more robust than estimates for the individual commodities. It is particularly difficult to determine the appropriate gap between UK and world prices for products whose specification varies, such as fruit and vegetables, or pigs, eggs and poultry.
UK taxpayers contribute to the entire EU budget rather than to specific programmes. Whilst it is possible to provide an illustrative estimate of the notional contribution to the FEOGA budget, it is not feasible to do so by commodity. However, the following table sets out the share of FEOGA spending by sector.
£ million Commodity Cost Cereals 30 Sugar beet 130 Milk 920 Beef and veal 770 Pigs, eggs and poultry 700 Fruit and vegetables 290 Others 470
CAP categories Share of expenditure (percentage) Arable crops 43 Sugar 3 Oils, fats and protein plants 6 Fruit and vegetables 4 Wine 3 Tobacco 2 Milk products 5 Meat, eggs and poultry 18 Various markets 3 Other operations 3 Rural development 10