CAB129-45 — Page 71

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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