To ask the Secretary of State for Environment, Food and Rural Affairs what his estimate is of the average percentage of (a) net profits and (b) turnover for (i) small farms and (ii) large farms which is represented by the Integrated Pollution Prevention and Control Regulation charges of (A) £1,471 and (B) £1,844.
The Integrated Pollution Prevention and Control (IPPC) Regulation charges quoted are the pro rata charges which the Environment Agency would apply in respect of permits for intensive livestock installations issued in August 2007 covering the period to March 2008. The annual permit charges thereafter are currently set at £2,229 and £2,794 for small and large installations respectively.
IPPC applies to intensive poultry rearing installations with places for more than 40,000 birds, and to intensive pig rearing installations with places for more than 2,000 production pigs or 750 sows. For charging purposes, any installation with places more than 10 times these thresholds is regarded as "large".
Information on profits and turnover is held on a basis in which large farm businesses are those considered sufficient to occupy two or more standard labour requirements. Standard labour requirement (SLR) for a farm business represents the labour requirement (in full-time equivalents) for all the agricultural activities on the farm. All intensive livestock installations subject to IPPC are "large" in these terms.
For poultry installations, annual charges for IPPC permits represent on average 0.2 per cent. of turnover and 5.0 per cent. of net profits, or 0.3 per Cent. and 6.2 per cent. respectively if it is a "large" installation for IPPC purposes. For pig installations, the corresponding figures are 0.4 per cent. and 3.5 per cent, or 0.5 per cent and 4.4 per cent.