Volume 12: Livestock Farming
2. Key features of UK agriculture
Government's influence on the agricultural economy

2.2 Since the Second World War successive Administrations have sought to increase domestic food production in order to reduce reliance on imported food,and to foster rural economies. This policy was developed by providing guaranteed returns to farmers under the Agriculture Acts of 1947 and 1957. At the same time the Government extended the provision of advisory services to farmers, funded research and development, and provided grants to encourage investment in more effective and efficient production systems. Statutory bodies promoted the marketing and distribution of certain agricultural products.

2.3 These measures helped bring about significant increases in crop yields and livestock production from the late 1940s. In the livestock sector, productivitygains resulted from genetic improvement of existing breeds, the introduction ofnew breeds from other countries, improved nutrition and reductions in diseaseand parasitism.

2.4 After the UK joined the European Economic Community (EEC) in 1973, there were further increases in the UK's agriculture output, not only in response to various CAP support regimes but also because of the development of exports to other Member States. Reforms to the CAP since the early 1980s, such as the introduction of milk quotas in 1984, sought to curb the production of some surplus agricultural commodities.

2.5 Between 1986 and 1995 the UK was nearly 60 per cent self-sufficient in food and feedstuffs. By contrast it was only 50 per cent self-sufficient in the 1960s, before joining the EEC. Between 1986 and 1995 the agricultural workforce declined as a result of changes in farming practice, greater mechanisation and the shift towards highly productive larger holdings. In 1986, 11 per cent of holdings accounted for 55 per cent of output, while the smallest holdings, making up 44 per cent of farms, produced only 3 per cent of output. ¹

2.6 In the mid-1980s, farming in the UK was relatively prosperous. It had available to it government-funded advisory, veterinary and marketing services which had long assisted farmers to increase output, and to improve animal health and welfare. It had a long tradition of financial support from both the UK government and the EU, ² in the form of market support schemes and compensation payments. It was developing valuable export markets and was noted for its high level of efficiency and productivity.

2.7 Between 1986 and 1995, as well as coping with the impact of the BSE epidemic, farmers had to come to terms with significant changes to their traditional relationship with government. In 1987 the Government largely withdrew the provision of free advisory services to farmers, cut back near-market research and in 1993 abolished the Milk Marketing Boards. During this period farmers were also faced with significant reforms of the EU's CAP. In particular, the CAP reforms of 1992 sought to reduce over-production of the main agricultural commodities (eg, cereals, oil seeds, beef and milk) by cutting support prices and reducing access to intervention.