§ Mr. Robert Atkinsasked the Minister of Agriculture, Fisheries and Food if he will make a statement on the outcome of the 1985 annual review of agriculture.
§ Mr. JoplingA White Paper setting out the conclusions of the 1985 annual review of agriculture will be laid before Parliament today. The White Paper shows that gross output in current prices is forecast to rise by 6 per cent. in 1984 to £12,349 million. This reflects increases in the value of output of nearly all major commodities but most noticeably in the arable sector where production was helped by the exceptionally favourable growing conditions. The only major sector to show a decline in output was milk and milk products. This was due in part to the milk qouta scheme and in part to the very dry summer.
Due largely to the exceptional weather conditions, farm incomes showed a significant recovery during 1984 and on one measure, "farming income", increased by some 22 per cent. to £1,826 million. In real terms, however, farm incomes remain some 8 per cent. below the 1982 level and well below the levels achieved in the mid-1970s. The profitability of the intensive livestock sectors showed a welcome improvement during the year. Otherwise there has continued to be an imbalance between the relatively prosperous arable sectors and the livestock sectors. This underlines the urgent need for reform of the CAP.