§ 25. Mr. Banksasked the Minister of Agriculture, Fisheries and Food what is the current level of investment in the agriculture industry compared with the levels of the previous five years.
§ Mr. BishopThe current level of investment is being considered in the course of the annual review which has now started. Information on vehicles, plant and machinery and new buildings and works is given in table 11.8 of "National Income and Expenditure 1965–1975". Information on work in progress and stocks is published in Annual Review White Papers.
§ Mr. Shepherdasked the Minister of Agriculture, Fisheries and Food what was the level of investment in the agricultural industry which originated from generated profits for the financial year 1975–76; what it was for each of the preceding five years; and, in each case, what it represented as a percentage of gross profit.
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§ Mr. BishopThe information requested is not available for the agricultural industry as a whole in the United Kingdom.
Farm account balance sheets are collected from a subsample of farms as part
AVERAGE LEVEL OF NEW GROSS INVESTMENT FINANCED FROM RETAINED NET FARM INCOME * ON ALL TYPES OF FULL TIME FARM (EXCLUDING HORTICULTURE) IN ENGLAND AND WALES £ per farm Years ending mid-February 1970–71 1971–72 1972–73 1973–74 1974–75 Number of farms in sample 556 632 685 661 743 New investment financed from retained net income during the year 642 1,850 2,670 3,619 1,776 * Net farm income represents the return to the farmer and his wife for their own labour and management and the return on tenant-type capital. It is calculated before tax and deduction of interests on loans and also excludes interest on any financial assets owned. Valuations are at market prices and depreciation is based on original cost. All farms are treated as rented and an imputed rental value is charged as an expense in the accounts of owner-occupiers. New investment financed from retained net farm income earned during 1973–74 and 1974–75 represented 50 per cent. and 28 per cent. respectively of total net farm income in those years. Comparable information is not available for the earlier years.
§ Mr. Shepherdasked the Minister of Agriculture, Fisheries and Food how much capital which originated from outside the industry was invested in the agricultural industry in the financial year 1975–76 and for the preceding five years; and what the main source of this capital was.
§ Mr. BishopI regret that full annual balance sheets for the United Kingdom over the past five years are not available, but data about the total external liabilities of the agricultural industry at June 1974 show that the main component at that date was bank loans and overdrafts.