Livestock production post CAP reform: implications for the environment

On 1 January 2005, the direct support schemes directed at UK livestock farmers as part of the Common Agricultural Policy (CAP) were replaced with a Single Farm Payment, decoupled from production. In practical term, this means that farmers now have freedom of choice over the particular farm enterprises they engage in since their income support is no longer dependent on their type of production. Farmer policy-response will be dependent on their previous dependence on the direct subsidies being replaced, which, as the paper shows, is considerable for UK livestock farmers. The paper suggests a dichotomous shift of farmer objective in the livestock sector in the future, with ‘environmental managers’ and ‘market managers’ focusing on different outputs. The outcome will be a significant down-sizing of the UK livestock sector but with probable net gains to the environment.