§ Mr. MitchellTo ask the Minister of Agriculture, Fisheries and Food in which of his Department's publications the basis and operation of the ecu basket of currencies and national green currencies used for calculating price support for agricultural products is described; and what assessment he has made of the extent to which these mechanisms influence the net farm income available to farmers in the United Kingdom(a) currently and (b) following the introduction of the euro. [57484]
§ Mr. RookerThe precise basis and operation of the current agrimonetary regime is not outlined in any of my Department's publications.
The agrimonetary regime has sheltered farm incomes from the full effect of the strong pound by slowing down the rate at which currency strength feeds through to the sterling value of CAP prices and direct payments. UK farm incomes are also benefiting from the current green rate freeze, which has been worth £400m to UK farmers over the last two years.
The Commission's draft regulations, which are still under discussion, propose a move to daily market rates, but also include measures for 100% EU financed compensation for any cuts in direct payments in 1999. This would cushion the impact of the end of the green rate freeze on UK farm incomes, and has been welcomed by UK farming organisations.