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Farming Subsidies

Volume 407: debated on Wednesday 25 June 2003

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To ask the Secretary of State for Environment, Food and Rural Affairs pursuant to her answer of 11 June 2003, Official Report, column 875W, on farming subsidies, if she will break down the figure for subsidy in 2001–02 indicating (a) what was subsidised, and by how much and (b) how much of the subsidy was supplied from each funding source; and if she will make a statement. [120014]

In 2001–02 public expenditure under the CAP and on national grants and subsidies was £4,664 million. The amount is broken down in table 9.1 of the Defra publication "Agriculture in the United Kingdom 2002", which is available in the Library of the House. This indicates the amounts falling either to the EU or the UK budget. Payments for market support and certain payments for rural development will not all have been received directly by the farming industry.In addition, UK farmers benefited from the effect of the market regimes and import tariffs, which kept the price of many commodities in the EU higher than elsewhere. The cost of this will have fallen to consumers. In 2000, the latest year for which UK figures are available, we estimate that the CAP cost UK consumers around £3.5 billion through higher prices.