Introduction

The agricultural policy of the New Labour governments has been central in their approach to governing the countryside. This is highlighted in the rhetoric of multifunctional agriculture, which stresses the contribution that farmers make to the delivery of a wide range of policy objectives – not only in food production but also in rural development, environmental sustainability, animal welfare and food quality. Thus in a speech to the Royal Agricultural Society in July 2006, David Miliband, the newly appointed Secretary of State for Environment, Food and Rural Affairs, commented that “farming is at the heart of our society, our economy and our cultural heritage. It's about people, food, landscape and the environment. It touches every member of society every day.… It is important not just for the countryside but for the whole country” (Miliband, 2006).

This chapter discusses the main issues that have structured the agricultural policy agenda since 1997. This has involved a combination of old and new problems, for example: bovine spongiform encephalopathy (BSE), bovine TB and avian influenza; recurring issues – the stagnation of agricultural incomes; the pursuit of long-standing policy commitments at the international level – radical reform of the Common Agricultural Policy (CAP) and greater liberalisation of world trade; and organisational reform – the creation of the Department for Environment, Food and Rural Affairs (Defra) and the impact of devolution. The chapter also links agricultural policy to New Labour's approach to the modernisation of the policy process, especially the emphasis on joined-up governance, evidence-based policy, learning from experience and other countries, and consultation with stakeholders (Cabinet Office, 1999).

Agricultural crisis and policy development

In 2004 the agri-food sector accounted for 7.6% of the total value of the UK economy and 14% of employment (nearly 3.8 million jobs). However, the agricultural industry now accounts for less than 1% of the economy and just 1.8% of total employment, although there are important variations between territories and between production sectors (Defra/SEERAD/DECP/DARD, 2005). Crucially for New Labour, its election coincided with the onset of a severe recession in the agricultural economy that led to a substantial reduction in farming incomes, which reached their lowest level in real terms for 75 years. Total income from farming in the UK in 2005 was estimated at £2.5 billion and while this was 40% above the nadir reached in 2000, it was still 60% below the 1995 high point for farming profitability.