Roger T. Garland
Question:377 Mr. Garland asked asked the Minister for Agriculture and Food if he will outline (1) the amount of the average farm income at present as opposed to ten years ago and (2) the way in which this income is constituted.
Written Answers. - Farm Income.
According to the national farm survey the average family farm income in 1990 was £7,545. The 1980 farm management survey, which was the predecessor of the national farm survey gave the average farm income for that year as £2,353. The 1980 survey was based on an entirely different sample from that used for the national farm survey after 1984 and the two figures are, therefore, not directly comparable.
Family farm income is composed of gross output less total net expenses. Gross output takes into account direct supports such as headage grants and premia. Family farm income represents the total return from the farm enterprise and consequently does not include State transfers such as pensions or unemployment assistance nor does it include any income from non-farm sources.
The household budget survey gives a more complete picture of the average income of farm households. According to this source the average weekly gross income of farm households in 1980 was £106.80, which grosses up to an annual income of £5,554. The average weekly gross income of farm households in 1987 was £242.64 which grosses up to an annual income of £12,595. The 1987 household budget survey is the latest of these surveys.
In the household budget survey gross income is composed of all direct income including that from investments and property plus all State transfers but does not take into account direct taxation or social insurance payments.