§ Mr. DrewTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on the impact of the(a) ending of the Over-Thirty-Months Scheme and (b) start of single farm payments on livestock holdings. [170136]
§ Alun MichaelThe information is as follows:
(a) If the Over-Thirty-Months Scheme were to end for cattle born after 1 August 1996 this would lead to an increase in domestic beef production, amounting to an additional 175,000 tonnes in 2005. Consequent changes in price will depend on the initial volumes and perceived quality of cow beef, the rate of import substitution, 22W market demand, and changes to the Date Based Export Scheme. Any losses to producers should be relatively short term and market prices for OTM cattle could, in the longer term, be expected to recover to levels close to the EU average. As the present OTMS compensation rate is below the EU market price for cull cows and demand for manufacturing beef is strong, UK farm prices for OTM cattle are expected to rise especially as exports open up leading to a positive effect on the incomes of dairy and suckler beef farmers.
(b) Under the single farm payment scheme, direct subsidies are being decoupled from production which will provide an opportunity for farmers to respond to market signals thereby producing products that consumers demand rather than producing those that they have historically produced, or which attract larger subsidies. Payments under the single payment scheme will initially be composed of an element based on farmers' historic payment in the reference period and an element based on their farm area. Area payments will be fully implemented by 2012. There will be some redistribution of monies within the regions defined by the area payments from the more intensive to the more extensive types of farming, but the impact on individual holdings will also depend on how they respond to opportunities presented by CAP reform.
§ Mr. Ben ChapmanTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on farm income levels for farmers in Wirral South. [170273]
§ Alun MichaelDue to the small number of farms in Wirral South, there are no robust data available on farm incomes for farmers in that area. Net farm income for farms in the EU North Region1 and for England over the last five years are show in the following table.
Net Farm Income £ EU North Region England 1998–99 8,272 10,359 1999–2000 8,659 7,981 2000–01 12,456 9,886 2001–02 16,457 13,558 2002–03 18,512 16,435 Source: Farm Business Survey Net farm income is the return to the principal farmer and spouse for their manual and managerial labour and to the tenant-type capital of the business.
1 Comprising Government Office Regions North East, North West and Yorkshire and the Humber.
§ Mr. MeacherTo ask the Secretary of State for Environment, Food and Rural Affairs if she will make a statement on farm income levels for farmers in Oldham, West and Royton in the past five years. [170880]
§ Alun MichaelDue to the small number of farms in Oldham West and Royton, there is no robust data available on farm incomes for farmers in that area over the last five years. Net farm income for farms in the EU North Region1 and for England over the last five years are show in the following table.
23W
Net Farm Income 1998–99 1999–2000 2000–01 2001–02 2002–03 EU North Region 8,272 8,659 12,456 16,457 18,512 England 10,359 7,981 9,886 13,558 16,435 Source: Farm Business Survey Net farm income is the return to the principal farmer and spouse for their manual and managerial labour and to the tenant-type capital of the business