Vol. 337 No. 6
asked the Minister for Agriculture if he will state, in view of the inflation rate which is now in excess of 20 per cent and the greatly increased cost of farm inputs, if it is his intention to grant increases in cattle and sheep headage payments for 1982.
414.
asked the Minister for Agriculture the rates for headage payment for cattle and sheep for 1982 he has put forward to the EEC for formal agreement; the stage the discussions are at; and when an announcement will be made about the rates.
I propose to take Questions Nos. 413 and 414 together.
Cattle headage rates of payment were practically doubled in 1980 and sheep headage payments were increased substantially in 1981. In the light of these increases no further increase was provided for in the 1982 Estimates by the previous administration. The present Government have, however, taken a positive step for 1982 by allowing payment on up to 30 livestock units separately under each of the cattle and the sheep headage schemes. In accordance with normal practice, the headage rates that will apply in 1982 will be announced as soon as they have been cleared by the EEC Standing Committee on Agricultural Structures. It is hoped that this clearance will be given within the next few weeks.
415.
asked the Minister for Agriculture if it is his intention to extend to all sheep flocks in the disadvantaged areas the same headage rates and regulations as operate at present for mountain sheep (£9.50 for the first 150 ewes and £6.50 for the next 50 ewes at the 1981 rates).
The relevant EEC directive lays down the requirement that the level of headage payments rates be set by reference to the degree of permanent natural handicap affecting farming activities which is suffered by any particular area.
As the degree of permanent natural handicap in mountain areas is obviously greater than that suffered by lowland areas, some differentiation in treatment between those areas must be maintained as indeed applied under the previous administration.
416.
asked the Minister for Agriculture if, in view of the manifest unfairness of the present system whereby a farmer with as little as 50p in off-farm income in excess of the comparable income loses his entire headage payments, he will change the regulations to enable affected farmers to get headage payments less the amount by which off-farm income exceeds the comparable income.
The limit on non-farm income under the disadvantaged areas schemes is designed to ensure that the limited resources available are used to benefit those most in need of assistance, that is those who depend mainly on farming for their livelihood. While there will always be marginal cases the present cut-off point represents a substantial non-farm income and I do not propose to change the arrangements which also applied under the previous administration.
