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Farm Subsidies

Volume 450: debated on Monday 23 October 2006

To ask the Secretary of State for Environment, Food and Rural Affairs how much Government paid to farmers in subsidies in each of the last 20 years in real terms. (93791)

The table shows subsidies and other payments paid direct to farmers in the United Kingdom between 1986 and 2005 in real terms at 2005 prices and also the retail price index. The data include subsidies and other payments funded by the EU. They exclude compensation for losses due to foot and mouth disease in 2001 and other capital transfers.

Agreement on CAP reform was reached in May 1992 (The “McSharry Reforms”). Major changes were made to a number of commodity regimes and an agri-environment initiative was agreed. In particular, there was a shift from market support for cereals and beef to direct payments to farmers.

Subsidies and other payments made to farmers in real terms at 2005 prices: United Kingdom

Year

Retail Price Index

Coupled subsidies1

Decoupled subsidies and other payments2

Total subsidies and other payments

2000=100

£ million

1986

57

111

81

858

1987

60

734

19

753

1988

63

714

18

732

1989

68

667

28

695

1990

74

682

24

706

1991

78

949

35

984

1992

81

1,115

45

1,160

1993

83

2,406

259

2,664

1994

85

2,246

348

2,594

1995

88

2,713

343

3,056

1996

90

3,498

306

3,803

1997

92

3,154

230

3,384

1998

96

2,871

247

3,118

1999

97

2,755

369

3,124

2000

100

2,465

334

2,800

2001

102

2,129

594

2,723

2002

103

2,323

612

2,935

2003

106

2,302

659

2,961

2004

110

2,436

602

3,038

20053

113

212

2,831

3,043

Note:

Data exclude compensation for losses due to foot and mouth disease in 2001 and other capital transfers.

1 Payments directly linked to the production of agricultural products, e.g. sheep annual premium, beef special premium scheme, less levies, e.g. milk super levy.

2 Payments not linked to the production of agricultural products, e.g. single payment scheme, agri-environment schemes, support for less favoured areas.

3 Data for 2005 are provisional.