European agricultural and environmental policy has evolved considerably over the last\ud 15 years. In this paper the changes in farm businesses in an Environmentally Sensitive Area in\ud England are evaluated based on two surveys with the same farmers at the start and end of this\ud period. The rate of participation in the environmental scheme had increased significantly at a\ud time when Government led goals in this area had developed and become more output\ud focussed. A combination of policy, market and animal health status changes had encouraged a\ud number to leave cattle production, and though remaining with stock and grass they had\ud decided against any extensive development in the direction of pluriactivity – with or without\ud Government encouragement. This left the future of this group in some uncertainty given that\ud two significant forms of financial support, the environmental scheme and the Hill Farm\ud Allowance, were due to close
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