Agriculture and land use: Demand for and supply of agricultural commodities, characteristics of the farming and food industries, and implications for land use in the UK

Agriculture is the largest type of land use in the UK, accounting for about 77 per cent of the total area, compared with an average 50 per cent for the EU27. But in common with most high-income countries, agriculture's contribution to UK GDP and employment is low, at about 0.5 and 1.8 per cent, respectively, although the regional importance of the sector (and its associated food and farming industries) varies considerably.Of the 17.5 million ha used for agriculture, about 28 per cent is allocated to crops, and 67 per cent is grassland. The grassland includes 4.4 million ha of sole-owned rough grazing and 1.1 million ha of common land in mainly upland “disadvantaged areas,” primarily used for beef and sheep production. This has a major influence on land use, especially in the northern and western parts of the UK.From the 1930s until the mid-1980s, UK policy promoted increases in agricultural productivity to feed the nation from its own resources. An array of income and production support measures encouraged intensive farming, including a relative switch to arable farming in eastern areas. Since the early-1990s, policies have sought simultaneously to make UK agriculture internationally competitive and environmentally benign. These policies, evident in the Agenda 2000 Reforms of the Common Agricultural Policy, point the way forward for the future. It is likely that a greater distinction will emerge between policies to protect natural resources and enhance the flow of non-market ecosystem services from rural land, and agriculture and food policies intended to encourage an appropriate proportion of national food requirements to be met from domestic sources.It seems likely that over the next 50 years, the UK's land area will be required to deliver an increasingly diverse range of private and public goods to meet growing human needs and aspirations. This will require a balance of policy-driven goals and market forces. It will also need a much improved understanding of the trade-offs between food production and environmental goals and of the institutional arrangements required to achieve a balance of economic, social and environmental outcomes.