Britain: An official handbook > 1977

AGRICULTURE, FISHERIES AND FORESTRY
287
OTHER
GOVERNMENT
ASSISTANCE
AND ACTION
Agricultural
Credit
Smallholdings
pay producers for their produce. In the case of milk there are five boards cover¬
ing different areas; the Government pays the guaranteed price on a specified
gallonage termed the standard quantity or the total gallonage sold off farms,
whichever is the less. Any milk produced in excess of the standard quantity
would be sold for manufacturing and the returns from these two sources
averaged by the boards to give the ‘pool price’ paid to producers.
For wool a fixed price is guaranteed to the British Wool Marketing Board
for every pound of fleece wool it buys from producers. This enables it to fix in
advance a schedule of producers’ prices, based on types and quality, after
making allowance for the board’s marketing costs.
For potatoes ministers fix each year a target area designed to achieve self-
sufficiency. In Great Britain the Potato Marketing Board ensures, as far as
possible, that this area is planted and may with government agreement under¬
take support buying of any surplus, re-selling as much as possible for stock-
feed. In Northern Ireland the Department of Agriculture undertakes any
support measures. Most of the cost is met by the Government. Any deficiency
payment arising is shared between the Potato Marketing Board and the
Department of Agriculture and can be used to meet the cost of support buying.
In England and Wales finance for the purchase or improvement of agricultural
land and buildings is available from the Agricultural Mortgage Corporation
Ltd. whose funds are derived mainly from public issues of stock, with some
government support. Loans for agricultural purposes secured on agricultural
land in Scotland are granted by the Scottish Agricultural Securities Corpora¬
tion Ltd. which works on a similar financial basis to the Agricultural Mortgage
Corporation Ltd.
In Northern Ireland loans are available to farmers from the Agricultural
Loans Fund, administered by the Department of Agriculture and financed out
of public funds. Short-term finance for agricultural machinery is arranged on a
hire purchase basis, whilst medium- or long-term loans are arranged for such
purposes as the purchase of livestock, the erection and improvement of farm
buildings and farm dwellings, and the purchase of land for amalgamation and
subsequent restructuring.
The Government can make loans in Great Britain to help finance the pur¬
chase of land acquired for approved amalgamations of small farms and ap¬
proved remodelling expenditure. These loans may be granted up to 90 per
cent (100 per cent for certain small amalgamations) of the valuation of the
combined unit determined by the Agricultural Mortgage Corporation Ltd. in
England and Wales and the Scottish Agricultural Securities Corporation Ltd.
in Scotland, which act as the Government’s agents.
Where a farmer or grower requires a bank loan for improvements to or
purchase of buildings, machinery, plant, equipment, livestock or working
capital, but cannot provide sufficient collateral, he may be eligible to obtain
medium-term credit through the Agricultural Credit Corporation Ltd.
The corporation guarantees some or all of the money borrowed from a bank
and the scheme extends to farmers’ and growers’ co-operative associations.
In England and Wales, about 10,000 smallholdings are provided by local
authorities and about 800 lettable holdings by the Ministry of Agriculture,
Fisheries and Food. For financial assistance in improving smallholdings,’
authorities can obtain the amalgamation and capital grants available to farmers
generally. The minister and local authorities may make loans of up to 75 per
cent of required working capital to their smallholding tenants.