17 March 1999
‘CAP reform holds hope for UK farming’

THE Home-Grown Cereals Authority (HGCA) believes that last weeks European farm policy deal offers some hope for farmers.

The HGCA says that in the financial year 1998/99 the average UK arable farm is operating at just above break-even level.

But it expects that the first two years of changes under Agenda 2000 would see incomes start to recover.

The HGCA specialists reached the overall conclusion that much will continue to depend on exchange rates and world prices.

The Agenda 2000 reforms must be approved later this month by European Union heads of government before they can be implemented.