Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of the effect of reduced milk prices on dairy farmers.

The latest forecast of Farm Business Incomes for 2015-16 indicates that average incomes are expected to fall on dairy farms to £46,500. This reflects the impact of lower milk prices which started to fall in March 2014. It is important to note the wide variation in milk prices with some farmers receiving considerably more or less than the average. Reductions in milk price have been offset slightly by increased milk production together with reduced input costs, particularly feed.

We understand the pressures facing dairy farmers and have taken action to ease their cash flow problems. The £26.2 million aid package we secured for the UK from the European Commission and paid out in November and December provided some relief to hard-pressed farmers.