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Common Agricultural Policy

Volume 124: debated on Wednesday 9 December 1987

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To ask the Minister of Agriculture, Fisheries and Food if he will give details of expenditure in 1986–87 and 1987–88 by the agricultural departments on agricultural grants and subsidies, excluding market regulation, under the common agricultural policy.

Details are given in the table of the outturn for 1986–87 and the latest forecast of outturn for 1987–88.

(£ million)
Outturn 1986–87Latest fore-cast of out-turn 1987–88
Price Guarantees
Wool8·12·5
Potatoes
8·12·5
Support for capital and other improvements
Environmentally sensitive areas3·6
Agriculture and Horticulture development scheme45·343·1
Guidance premiums3·22·0
Farm accounts0·70·7
Farm structure0·30·2
Northern Ireland agricultural development programme4·02·2
Agriculture and Horticulture grant scheme25·61·9
Agriculture improvement scheme (EC)7·529·8
Agriculture improvement scheme (National)8·98·6
Others0·20·5
95·792·6
Support for agriculture in special areas
Hill livestock compensatory allowances121·7114·8
Additional benefit to farmers in special areas under AHDS, NIADP, AHGS, AIS(EC) and AIS(nat)29·925·3
Others4·93·8
156·5143·9
Other payments
Milk outgoers scheme9·510·9
Weather aid 1985
Sheep compensation scheme4·31·0
Cooperation grants2·72·5
Producer organisation1·00·8
Forage groups0·40·4
17·915·6
Grand total278·2254·6
Some of this expenditure attracts contributions from the European agricultural guidance and guarantee fund. These are mainly received in the following year. In 1987–88, £36.7 million is expected to be received from the fund, compared with £41.5 million in 1986–87.The individual figures may not add up to the totals shown due to roundings.

To ask the Minister of Agriculture, Fisheries and Food if he will provide details of expenditure in 1986–87 and 1987–88 by the Intervention Board for Agricultural Produce and the agricultural departments on market regulation under the common agricultural policy.

Details of the outturn for 1986–87 and the latest forecast of outturn for 1987–88 are as follows:

(£ million)

Outturn 1986–87

Latest forecast of outturn 1987–88

(i) Expenditure by the intervention board for agricultural produce

Cereals114·5191·1
Beef and Veal229·7243·0
Pigmeat-2·4 -1·7
Sugar114·9136·8
Processed Goods41·645·5
Milk Products299·6282·1
Oil Seeds118·4195·9
Sheepmeat102·3124·7
Others18·128·8
1,036·71,246·2

(ii) Expenditure by the agricultural departments

Payments to milk producers giving up milk production51·0
Milk Non-Marketing Premiums
Suckler Cow Premium Scheme26·937·0
Annual premium on ewes101·7143·8
Small cereals producers3·4
Grand Total128·6235·2

Expenditure includes the beef and sheepmeat variable premium schemes (net of clawback for sheepmeat and charges on beef exported and sold into intervention), the premium schemes for the non-marketing of milk and the conversion of dairy herds, suckler cow premium scheme, annual premium on ewes, payments to producers giving up milk production, scheme to aid small cereal producers, refunds on imports and exports (net of levies), the school milk subsidy, and the net cost of buying commodities into intervention less proceeds from sales. It also takes account of certain receipts treated as negative expenditure, namely monetary compensatory amounts levied on intraCommunity trade and the co-responsibility levies on cereals and milk producers and supplementary levy on milk producers. Of the estimated outturn for 1987–88 £1,333.1 million is expected to be financed from the European agricultural guidance and guarantee fund (EAGGF), the balance being financed from Exchequer funds. In 1986–87, £1,439–3 million was financed from EAGGF. Some of the expenditure shown above benefits consumers and trade interests rather than United Kingdom producers.