§ Mr. Laurence RobertsonTo ask the Secretary of State for Environment, Food and Rural Affairs what assessment she has made of the future profitability of farms following the introduction of the single farm payments scheme. [173691]
§ Alun MichaelThe Single Payment will decouple direct subsidies from the type or level of production. This will encourage farmers to respond to market signals rather than produce according to individual subsidy regimes. Decoupling payments from production is expected to lead to higher farm prices and consequently higher farm incomes. Defra economists estimate that overall, UK farm incomes will increase by around 5 per cent. of the forecast Total Income from Farming for 2003. This is an aggregate figure and the change in farm profitability will vary between different farm types and sizes. Further information can be found in the Economic Position of the Farming Industry report published on the Defra website at http://statistics.defra.gov.uk/esg/reports/repfi.pdf.
§ Mr. DrewTo ask the Secretary of State for Environment, Food and Rural Affairs what plans she has to provide more assistance to(a) owner-occupiers and (b) tenants of small intensive livestock farms after the introduction of single farm payments. [169740]
§ Alun MichaelWe have no plans to differentiate payments to reflect the numbers of livestock kept on individual farms. Basing payments on stocking densities would create an incentive to increase production. By freeing up payments from the volume of production, producers will in future be free to meet market needs.