asked the Minister for Agriculture the increase in guaranteed farm prices which would be justified in the forthcoming price review on the basis of the objective method; and if he will explain how this calculation is made.
Written Answers. - Farm Price Review
224.
The calculation referred to is done by the EEC Commission on the basis of data obtained from member states. The Commission's calculations for the year 1981/82 have not yet been made available to member states and it is not possible, therefore, to say at this stage what price increases the "objective method" would justify for that year.
The methodology used is rather complex. Broadly, the Commission take into account trends in member states of farm incomes and costs over recent years, monetary fluctuations and adjustments, inflation and productivity increases, as well as developments in incomes in non-farm sectors. A detailed outline of the methodology is given in Commission document RI/CC 478 of 19 October 1976, a copy of which I am arranging to send to the Deputy.