§ 16. Mr. David ShawTo ask the Minister of Agriculture, Fisheries and Food what assessment he has made of the effect a 2 per cent. increase in interest rates would have on farm incomes.
§ Mr. GummerNo such assessment has been made, but it would inevitably have a negative effect on farm incomes. This would be extremely bad news for farmers as it would for everyone else. That is why the Government will bring down interest rates as quickly as it can.
§ 19. Mr. Nicholas WintertonTo ask the Minister of Agriculture, Fisheries and Food whether he will make a statement on the level of farm incomes in real terms in the last two years for which figures are available.
§ Mr. GummerThe index for total income from farming, which gives the returns to farmers, partners, directors and their spouses, and family members working on the farm, was 102.1 in real terms for 1990 and is forecast to be 90.8 in 1991. Both figures relate to a base of 100 in 1985.
§ 24. Mr. Robert HicksTo ask the Minister of Agriculture, Fisheries and Food if he will make a statement on the level of farm incomes in the south-west; and if he will make a statement.
§ Mr. GummerThe results of the farm business survey for the sample of 176 farms in the region have recently been published by the agricultural economics unit of Exeter university in "Farm Incomes in South-West England 1990–91". These show that on average the level of net farm income for all types of farm in the south-west fell by about one third between 1989–90 and 1990–91. Since that time, increases in cattle prices, the higher rates of hill livestock compensatory allowances and sheep subsidies in 1991 and increases in cereal yields and prices are expected to bring improvements for most farm types.