§ Lord Elis-Thomasasked Her Majesty's Government:
What estimates they have produced of the effect of changes in the level of hill livestock compensatory allowances on farm incomes, and what number of hill farms are in the position whereby headage payments received are greater than residue of farm income taking into account all overhead costs.
The Parliamentary Secretary, Ministry of Agriculture, Fisheries and Food (Earl Howe)The reduction in HLCAs will, on the vast majority of farms, be offset by increases in the level of annual premium brought about by changes in the green pound and in the increases in the supplement to producers in the less favoured areas. Statistics are not available on the number of farms for which headage payments are equal or greater than the residue of farm income taking into account all overhead costs. However, in 1991–92 results from the farm business surveys show that on average HLCAs accounted for about 63 per cent. of net farm income on livestock farms in the LFA in the United Kingdom. The proportion is estimated to decrease to about 54 per cent. in 1992–93 as the net farm income of these farms is expected to rise.