§ Mr. Welshasked the Secretary of State for Scotland if he will publish in the Official Report the figures he has available to him comparing the rise in hill farming costs with hill farming incomes; and what representations he has had on these problems.
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§ Mr. Hugh D. BrownThe specimen net incomes for different types of farm published in the 1979 annual review White Paper (Cmnd. 7436) show that, between 1976–77 and 1977–78, average net income (excluding breeding livestock stock appreciation) per farm fell from £6,336 to £5,997 on Hill Sheep farms and from £5,730 to £5,556 on upland farms. On hill sheep farms costs rose by £2,239 and output by £1,900, while upland farms costs rose by £2,463 and output by £2,289. I have received representations on these matters from the National Farmers' Union of Scotland and the Scottish Landowners Federation.
§ Mr. Welshasked the Secretary of State for Scotland what evidence he has on the effects current high interest rates are having on the Scottish hill farming industry; and if he has figures to show the proportion of hill farming incomes necessary to service such loans during each of the past six years.
§ Mr. Hugh D. BrownThe effect of interest rates cannot readily be isolated from that of other factors affecting the hill farming industry. The table below shows interest payments expressed as a percentage of net farm income, excluding breeding livestock stock appreciation.
INTEREST PAYMENTS AS A PERCENTAGE OF NET FARM INCOMES Hill Sheep farms Upland farms 1973–74 2.6 8.8 1974–75 4.5 11.8 1975–76 3.0 11.6 1976–77 3.2 15.8 1977–78 3.7 13.1 In 1978–79, the percentages are likely to have risen, but to remain below the earlier peak levels. These interest payments relate to borrowings for both capital and trading purposes.