§ Paul FlynnTo ask the Secretary of State for Environment, Food and Rural Affairs what percentage of farm gate prices of farm produce are less than the cost of production. [28939]
§ Mr. Morley[holding answer 21 January 2002]: The cost of production and the farm gate price of any particular commodity vary from producer to producer and over time. It is not possible therefore to determine a fixed proportion of the farm gate price that is attributable to the cost of production. At the whole farm level, the incidence of selling at below the cost of production is indicated by data from the Farm Business Survey. They show the incidence of negative farm incomes, where total costs 269W exceed total output from the farm. In 1999–2000, 36 per cent. of farms in the Farm Business Survey in England had negative net farm incomes.