Future of upland farming

Sustainable Uplands & Moors for the Future Research Note No. 13 September 2007

How did we get where we are now?Farming in historyUK uplands have been grazed by livestock for thousands of years. By medieval times there had already been a long history of woodland clearance and grazing. From the 12th to the 14th Centuries, the monasteries introduced extensive sheep grazing in the uplands to produce wool. This pre-dates the use of moorlands for grouse shooting, which only became popular in the 18th Century. In the second half of the last Century, changes in agricultural subsidies and economic pressures vastly increased upland sheep numbers, while rising costs and lack of skilled labour meant that some management, like shepherding, became less intensive. Now, new changes to agricultural policy and the changing way that uplands are perceived and valued poses some serious challenges for future upland farming.

moorlands because prices were guaranteed regardless of demand for lamb.

Despite attempts to address imbalances though quotas and set aside, major reform did not begin until the early 1990s. Building on previous reforms, the Agenda 2000 reforms focused on paying farmers directly instead of supporting prices, and greater investment in agri-environment schemes and rural development. However, these direct payments still paid farmers for production and this led to over-stocking and further degradation of uplands.

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Common Agricultural PolicyThe Common Agricultural Policy (CAP) was established in 1957 when the EU negotiated rules for the common market. The purpose of CAP was to secure a fair standard of living for farmers and secure food supplies at affordable prices within Europe.

CAP started operating in 1962 but ran into problems early on when guaranteed payments for goods led to overproduction and surpluses. The Peak District alone saw a 275% increase in sheep numbers between 1950-1976. Fixed prices encouraged farmers to graze more sheep on

The most recent CAP reform began in 2003. It seeks to remove production-based subsidies and replace them with Single Farm Payments attached to cross compliance with environmental and health standards and Good Environmental and Agricultural Conditions. It is hoped that these measures will encourage farmers to reduce sheep densities so that upland habitats can recover. These payments are gradually being reduced as funding is shifted towards payments for training, business diversification and agri-environmental schemes.

Upland farmers can receive further payments through Less Favoured Area (LFA) and Environmentally Sensitive Area (ESA) schemes, designed to supplement incomes from upland farming and maintain distinct upland landscapes.

LFAs are locations that have limited productive capacity, making them unsuitable for intensive

Where are we now?

Recent changes to CAP are designed to encourage farmers to reduce their livestock holdings and become countryside stewards, providing environmental goods and services, like flood prevention, biodiversity and recreation opportunities, demanded by government and the public. Upland stocking rates decreased by 8% between 2004-2006 and there is now less intensive sheep farming on moorlands coupled with more intensive farming lower down. It is still unclear whether the new CAP and other schemes will encourage management that can deliver the desired goods and services, and in overgrazed areas, habitat recovery may require more than just a reduction in sheep numbers.

Where are we going?

farming. Since 2001, farmers get area payments linked to good farming practice rather than per head of livestock.

In 1996 there were 43 ESAs in the UK covering 34,000 km2. ESAs aim to reduce stocking rates in sensitive uplands. The scheme is voluntary and farmers are paid to reduce their stocking to between 0.1-0.225 livestock units per hectare and remove 25% of their stock from the moors between October-February.

Although existing ESA agreements will run their course, ESAs have now been replaced by a two-tier Environmental Stewardship Scheme. It is made up of a less demanding, lower-payment Entry Level Scheme and a more demanding higher-payment Higher Level Scheme. There are currently proposals to revise this scheme to deal with specific upland issues by introducing an Upland Entry Level Scheme.

The centuries-long association between farming and the landscape means that many of the upland landscapes we value look the way they do because of farming. The problem is that more intensive farming systems tend to replace the traditional farming systems that have shaped the landscape. A study by the Peak District Rural Depravation Forum found that farming incomes in the Peak District decreased by 75% between 1994 and 2004. Without subsidies, the average farmer would be in debt by £2300 a year. If government and the public want uplands to provide certain services then we will have to find ways to pay for it.

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Is diversification the future of upland farming?

Many farming households now earn a living from direct marketing of speciality crops and animals, accommodation, or recreation and leisure, as well as farming. Diversification has been popular in policy since the 1980s as a way to help farmers earn a living through traditional agriculture. In the 1980s, around 42% of farms were involved in one or more activities outside conventional farming and this grew to nearly 60% in the 1990s.

However, diversification is less common in uplands. While some farmers have been able to diversify into services such as bed and breakfast accommodation, camp sites, cafés and farm shops, these options are not open to everyone. There are also limited opportunities for farming households to supplement their income from the leisure industry. While approximately a quarter of jobs in the Peak District National Park are in tourism and retail, they are also some of the lowest paid jobs available. There has also been a long-term decline in the number of people visiting the countryside. Therefore encouraging more farmers to diversify into tourism may not be sustainable.

The contribution that farmers make to maintaining the landscapes and heritage essential for tourism is poorly recognised. Although CAP and other payments are now helping farmers provide environmental goods and services, there are no direct payments from tourism. Capital generated by tourism could be used to pay farmers, either through road charging or by encouraging the tourist industry to purchase and run farms or contribute financially to local farms.

Alternatively, the environment may be used as a trademark. The Peak District Environmental Quality Mark (EQM) is the first of its kind in the UK. The EQM certifies goods and services within the Peak District National Park based on environmental practices. So far over 30 businesses, including farms, have been awarded the EQM and they say that it has brought economic benefits. However, such voluntary schemes may not encourage environmentally friendly practices if the costs involved are not balanced by increased business.

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Contact Us

Moors for the Future Partnership, The Moorland Centre, Edale, Hope Valley, S33 7ZA

Tel: 01629 816581

www.moorsforthefuture.org.uk

Email: moors@peakdistrict.gov.uk

Funded by the Rural Economy & Land Use Programme, a joint Research Councils programme co-sponsored by Defra & SEERAD

Sustainable Uplands Project, Sustainability Research Institute, School of Earth & Environment, University of Leeds, Leeds LS2 9JT

Tel: 0113 3433316

www.see.leeds.ac.uk/sustainableuplands

Email: sustainableuplands@env.leeds.ac.uk

The Moors for the Future Partners are:

Natural England, National Trust, Peak District National Park Authority, United Utilities, Severn Trent Water, Yorkshire Water, Sheffield City Council, Moorland Association, Defra, Country Land and Business Association, National Farmers Union

Other Research Notes in this series:

1 - Breeding Bird Survey of the Peak District moorlands

2 - Peak District Moorland Gully Blocking in Deep Peat

3 - Peak District Moorland Stream Survey

4 - Heavy Metal Pollution in Eroding Peak District Moors

6 - Monitoring of Burning in Uplands A Rapid Assessment Protocol

9 - Air Pollution in the Peak District

12 - Carbon Flux

13 - Future of Upland Farming

14 – Looking after moorland habitats

15 - Soil & water conservation: opportunities to combat climate change

16 - Tourism & recreation: opportunities and threats of the visitor economy

As with many other UK uplands, the Peak District has undergone significant demographic changes. New residents have retired there or bought holiday homes, and younger, unskilled workers have been priced out of local housing markets. The population of the Peak District National Park is now slightly older than the national average and there are labour shortages for traditional land management practices. 12% of residents in the National Park are farmers and national average age for a farmer is 58, but low incomes, particularly in uplands, do little to attract young farmers.

How is upland society changing?Rising house prices and planning restrictions on new builds, have made it expensivev for farmers to buy even unprofitable farms. It also encourages intensive farming as farmers try to make back their initial outlay. These prices reflect the value of the landscape and its amenity value to second home owners who often earn considerably more than local people. This means that house prices in the Peak District National Park are driven more by external economic conditions than by the local economy.