ANNEX A
1. Net income 1950/51 (estimate)
2. Target 1951/52
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£ million
3. Excess income in 1951/52, at present,
costs, prices and production levels would be
4. Increase in costs
5. Of which carried in 1950/51 notwithstanding
excess income over target
6. Balance of increased costs to be borne in
1951/2
7. Excess income at present prices and
production levels
8. Shortfall of income
9. Allowance (see note)
10. Recoupment needed:
2991/
273
26
87/12/2
34
53-12
-261
27
10
37
Minister of
Food
70
11. Alternative offers:
Food Prices
Wool Price
35
93
44
12. Capital withdrawal
10
342
Agricultural
Ministers
40
4 to 9
44 to 49
10
341 to 393
13. Recoupment needed (line 10)
37
37
14. Thus even after withdrawal of
capital, farmers will only be under-recouped by
21
21/2
or, on the alternative basis, over-recouped by
2층
NOTES:
The Agricultural Ministers point out that with these levels of recoupment proposed, if farmers' incomes turn out as planned, they will, after the withdrawal of £10 million capital injection, receive from £23 million to £29 million less income than it is at present estimated they will receive in 1950/51.
Item 1. The estimated net income includes £442 million for increased value of stocks. Although this is income, it is not available as cash to the farmers, and we cannot tell whether it will be repeated in 1951/2; this depends on cost increases in that year. Some allowance for this factor has therefore been made in the calculation (see note onPage 19df 587
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