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Milk Production (Subsidies)

Volume 976: debated on Thursday 20 December 1979

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asked the Minister of Agriculture, Fisheries and Food what is the amount of EEC subsidy granted to farmers for relinquishing milk production; how many farmers in the United Kingdom have accepted the subsidy; what was the total payment; and if he will indicate whether the subsidy is attracting the small or the large farmer.

Premiums are payable under the EEC non-marketing of milk and conversion premium scheme on the quantity of milk and milk products delivered by a farmer in a 12-month reference period. The rates of premium per 100 kilograms are as follows:

Non-Marketing Premiums
20 units of account (£14·95) on the first 30,000 kilograms
18 units of account (£13·46) on the next 20,000 kilograms
13·5 units of account (£10·09) on the next 70,000 kilograms
11 units of account (£8·22) on the remainder
Conversion Premium
17·5 units of account (£13·08) on the first 120,000 kilograms
11 units of account (£8·22) on the remainder.
Up to the end of November 1979, 4,731 applications from farmers in the United Kingdom were approved under the two sections of the scheme.Instalments of premium amounting to £18·86 million have been paid on approved applications. It is estimated that further payments of £38·8 million will be made in respect of all applications received up to 31 March 1980 and approved.Of the approved applications since the scheme was introduced in 1977, 31 per cent. relate to farmers with herds of 14 cows or less and 15 per cent. to farmers with herds of 50 cows or more. For approvals since 1 January 1979 these proportions have changed to 24 per cent. and 28 per cent., respectively.