Arable Farmland (Hansard, 7 November 2000)

§ Mr. Nick Brown

[holding answer 6 November 2000]: MAFF's agricultural land prices series are derived from returns made to the Valuation Office Agency of the Inland Revenue. Arising from changes in the manner in which

£ million
	FEOGA years¹
Measure	2000	2001	2002	2003	2004	2005	2006	Total
Investment in Agricultural Holdings
Total	0.0	1.0	1.5	2.3	3.3	3.7	4.8	16.6
Of which:
EU Contribution	0.0	0.5	0.8	1.1	1.6	1.8	2.4	8.3
Exchequer Contribution	0.0	0.5	0.8	1.1	1.6	1.8	2.4	8.3
Training
Total	0.0	2.1	2.5	3.6	4.0	4.0	5.7	22.0
Of which:
EU Contribution	0.0	1.1	1.3	1.8	2.0	2.0	2.9	11.0
Exchequer Contribution	0.0	1.1	1.3	1.8	2.0	2.0	2.9	11.0
Less Favoured Areas
Total	42.4	43.8	40.9	37.4	34.8	27.2	27.2	253.8
Of which:
EU Contribution	11.4	7.1	7.1	7.1	7.1	7.1	7.1	54.0
Exchequer Contribution	31.0	36.7	33.9	30.3	27.8	20.1	20.1	199.8
Agri-environment
Total	83.6	111.3	122.1	137.6	153.5	169.2	183.8	961.1
Of which:
EU Contribution	34.8	34.5	29.1	23.7	18.3	16.2	13.7	170.3
Exchequer Contribution	48.8	64.6	71.5	80.6	90.0	99.8	108.8	564.1
Modulation Receipts	0.0	12.2	21.5	33.3	45.2	53.2	61.3	226.7
Improving Processing and Marketing of Agricultural Products
Total	0.0	2.2	6.3	8.0	8.0	8.0	11.4	44.0
Of which:
EU Contribution	0.0	1.1	3.2	4.0	4.0	4.0	5.7	22.0
Exchequer Contribution	0.0	1.1	3.2	4.0	4.0	4.0	5.7	22.0
Afforestation of Agricultural Land
Total	15.5	20.3	23.9	26.1	27.1	29.1	30.1	172.0
Of which:
EU Contribution	5.3	5.7	6.6	6.9	7.3	8.0	6.6	46.4
Exchequer Contribution	10.2	13.0	15.4	17.2	17.8	19.1	19.7	112.3
Modulation Receipts	0.0	1.6	1.9	2.0	2.0	2.0	3.8	13.3

152W

the data were transmitted and compiled last year, there were some changes in definitions occasioning a break in the series. This break occurs in 1993; hence it is not possible to have a comparable series before and after that year. The latest available data refer to the year 1999 (and figures for this and the two preceding years are still provisional). The MAFF series are not defined directly for arable farmland but there is a categorisation by predominant grade of land. It is probably the case that Grades 1 and 2 land would be closest to arable land for most situations and this general assumption is made for the purpose of these valuations. The average price of Grades 1 and 2 farmland in England rose from £3,617 per hectare in 1993 to £7,172 in 1999, representing an increase in current (nominal) price terms of 98.3 per cent. The increase was not continuous and peaked in 1997 when the price was £7,339 per hectare; it declined to £6,941 in 1998, before rising somewhat again last year. In real (constant 1995 price) terms the overall increase for the period 1993 to 1999 amounted to 68.8 per cent.