HC Deb 05 July 1984 vol 63 cc272-4W
Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food whether he will publish in the Official Report a table showing the return on capital employed in hill and upland (less favoured areas) cattle and sheep farms on the same basis as given in his answer of 7 June, Official Report, column 265, about dairy fanning.

Mr. Jopling

The estimated return on capital in 1982–83 derived by expressing management and investment income as a percentage of average tenant's capital is shown for the categories of hill and upland (less favoured area) cattle and sheep farms for which data are available.

Estimated return on capital on hill and upland (LFA) cattle and sheep farms 1982–83
Size of business
Country Small per cent. Medium per cent. Large per cent.
England 8 10½ ..
Wales 4 13½ ..
Scotland 5 11½
Northern Ireland .. .. ..

Notes:

1. Return on capital is defined as management and investment income (including breeding livestock stock appreciation) as a percentage of average tenant's capital. Management and investment income is here defined provisionally as the value of total farm output including breeding livestock stock appreciation minus all inputs except the salaries of paid management and interest on farming loans but including the manual labour input of farmers and their spouses.

2. See notes to tables 26 and 27 of annual review White Paper (Cmnd. 9137) for definition of business sizes.

3. Figures not available.

4. Year ends February 1983.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food whether he will publish in the Official Report a table showing the return on capital employed in specialised cereal growing on the same basis as given in his answer of 7 June, Official Report, column 265, about dairy farming.

Mr. Jopling

The estimated return on capital in 1982–83 derived by expressing management and investment income as a percentage of average tenant's capital is shown for the categories of specialist cereal farms for which data are available.

Estimated return on capital on specialist cereal farms 1982–83
Size of business
Country Small per cent. Medium per cent. Large per cent.
England -5 16½
Wales .. .. ..
Scotland .. 12½
Northern Ireland .. .. ..

Notes:

1. Return on capital is defined as management and investment income (including breeding livestock stock appreciation) as a percentage of average tenant's capital. Management and investment income is here defined provisionally as the value of total farm output including breeding livestock stock appreciation minus all inputs except the salaries of paid management and interest on farming loans but including the manual labour imput of farmers and their spouses.

2. See notes to tables 26 and 27 of annual review White Paper (Cmnd. 9137) for definition of business size.

3. .. Figures not available.

4. Year ends February 1983.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food, further to his answer of 7 June, Official Report, column 265, concerning the return on capital in dairy farming, whether the results were significantly affected by interest charges and the level of actual or inputed rents; if he will adjust the figures to exclude these items; and if he will publish a table showing for each country and each of the three sizes of business the return for owner-occupied dairy farms.

Mr. Jopling

The return on capital in the farm management surveys, as measured by management and investment income—including breeding livestock stock appreciation — as a percentage of average tenant's capital, is calculated before the deduction of interest on farming loans. The level of interest charges does not therefore affect the result. The estimated return on tenant's capital is affected by the level of rent and it would not be meaningful to produce a measure of management and investment income excluding rent. Data of return on capital according to type of tenure are not available.

Mr. Austin Mitchell

asked the Minister of Agriculture, Fisheries and Food, further to his answer of 7 June, Official Report, column 265, concerning the return on capital employed in dairy farming, whether he will publish in the Official Report a table showing the rate of return on the basis of historic costs throughout and (a) the actual capital, (b) the amount deducted from income on account of the manual labour input of farmers and their spouses, (c) the inputs by way of paid management and (d) the inputs by way of interest on farming loans.

Mr. Jopling

Data are not available of rates of return on tenant's capital calculated on the basis of historic costs, or of interest on farming loans. Details of average tenant's capital, the value of the manual labour of farmer and spouse and of paid management on small, medium and large dairy farms in 1982–83 are given in the table.

Average tenant's capital, value of farmer and wife manual labour input and paid management on small, medium and large dairy farms in the United Kingdom in 1982–83 Year ending February 1983
Size of business * Average Tenant's Capital †Value of Farmer and Wife manual labour input ‡Value of paid management
Small
England 41,082 5,784
Wales 36,490 5,530
Scotland 30,327 5,509
Northern Ireland 30,303
Medium
England 97,257 5,916 36
Wales 90,345 5,067
Scotland 79,715 8,018
Northern Ireland 78,388
Large
England 229,246 4,308 458
Wales 175,582 4,795 391
Scotland 167,558 5,914 35
Northern Ireland
* This is the average of the opening and closing valuation of glasshouses, permanent crops and machinery (at current cost), livestock (both trading and breeding) and other assets such as stocks of harvested crops not yet sold and stocks of purchased feed, seed and fertiliser etc. growing crop valuations, sundry debtors and cash in hand and bank.
† The time devoted to manual labour on the farm by the farmer and his wife valued at the appropriate rate of comparable paid labour.
‡ This is the sum paid to farm managers for their manual and managerial contributions to the day-to-day running of the farm.
║ Data not available.