HC Deb 31 March 2004 vol 419 cc1472-3W
Bob Spink

To ask the Secretary of State for Environment, Food and Rural Affairs when she expects real total income from farming to return to the level of 1995; and if she will make a statement. [162876]

Alun Michael

Total income from farming in the UK is estimated to be £3.2 billion in 2003, having increased for the third year in a row. In real terms this is 28 per cent. above the 2002 level and 77 per cent. above the low point in 2000. It remains 50 per cent. below the peak in 1995.

Total income from farming in 1995 was exceptionally high due primarily to the combined effects of currency movements the UK's exit from the Exchange Rate Mechanism and favourable world commodity prices.

Government policy is to facilitate the right economic framework to enable farmers to succeed, compete successfully internationally and have a profitable future.

The Government's Strategy for Sustainable Farming and Food, was published on 12 December 2002. The strategy provides a clear and strategic long-term direction towards a more sustainable future. The Government will work in partnership with industry and other stakeholders to implement the strategy, providing the leadership to allow farmers to flourish by their own efforts and to become better connected to markets and consumer requirements.

Bob Spink

To ask the Secretary of State for Environment, Food and Rural Affairs what action she proposes to take to maintain the growth in net farm income for(a) dairy, (b) cereals, (c) cattle and sheep (less favoured areas) and (d) cattle and sheep (lowland); and when she expects each to reach, in real terms, the levels of 1995–96.[162878]

Alun Michael

In the year ending February 2004, net farm income in England is expected to have increased on dairy farms, cereal farms and cattle and sheep farms (less favoured areas) in comparison to the previous year. Incomes on lowland cattle and sheep farms are expected to have been broadly unchanged. The increases in incomes are mainly a reflection of higher market prices and support payments in that year which, in turn, are mainly a result of market forces and movements in currency exchange rates.

The level of net farm income in 1995–6 was exceptionally high due primarily to the combined effects of currency movements following the UK's exit from the exchange rate mechanism and favourable world commodity prices.

Government policy is to facilitate the right economic framework to enable farmers to succeed, compete successfully internationally and have a profitable future.

The Government's Strategy for Sustainable Farming and Food, was published on 12 December 2002. The strategy provides a clear and strategic long-term direction towards a more sustainable future. The Government will work in partnership with industry and other stakeholders to implement the strategy, providing the leadership to allow farmers to flourish by their own efforts and to become better connected to markets and consumer requirements.

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