THE RURAL DEVELOPMENT PROGRAMME FOR 2007-2013

3 Analysis of the situation, the strategy and the ex ante evaluation ...... 3-3 3.1 Analysis of the situation in terms of Strengths and Weaknesses ...... 3-3 3.1.1 The general socio-economic context of the geographical area ...... 3-3 3.1.1.1 Rural areas in England ...... 3-3 3.1.1.2 The demographic situation ...... 3-6 3.1.1.3 In and out migration in rural England ...... 3-9 3.1.1.4 Peri-urban pressures and remoteness ...... 3-10 3.1.1.5 Economic drivers, productivity and growth in rural England .. 3-11 3.1.1.6 The labour market ...... 3-12 3.1.1.7 Land use in rural England...... 3-17 3.1.2 Performance of the agricultural, forestry and food sectors ...... 3-31 3.1.2.1 Competitiveness of the agricultural, forestry and food sectors .... ` ...... 3-31 3.1.2.2 Analysis of structural disadvantages and identification of restructuring and modernisation needs for the agricultural, food and forestry sectors ...... 3-41 3.1.2.3 Human capital and entrepreneurship ...... 3-49 3.1.2.4 Potential for innovation and knowledge transfer ...... 3-52 3.1.2.5 Quality and compliance with Community standards ...... 3-55 3.1.2.6 Overall assessment of the range of information presented ..... 3-60 3.1.2.7 Summary table for competitiveness of the agricultural, food and forestry sectors ...... 3-62 3.1.3 Environment and land management...... 3-65 3.1.3.1 The handicaps facing farms in areas at risk of abandonment and marginalisation ...... 3-65 3.1.3.2 Overall description of biodiversity ...... 3-70 3.1.3.3 Water quantity and the role of agriculture ...... 3-80 3.1.3.4 Water quality and the role of agriculture ...... 3-83 3.1.3.5 Implementation of the Nitrates and Water Framework Directives on farmland ...... 3-89 3.1.3.6 Air pollution and the links to agriculture ...... 3-92 3.1.3.7 Action to reduce ammonia emissions and meet international targets ...... 3-95 3.1.3.8 Climate change and agriculture, including bio-energy ...... 3-96 3.1.3.9 Soil quality and protection ...... 3-101 3.1.3.10 Pesticide use ...... 3-102 3.1.3.11 Organic farming ...... 3-105 3.1.3.12 Animal welfare ...... 3-108 3.1.3.13 Extent of protective and protected forest areas ...... 3-108 3.1.3.14 Forest areas under high/medium fire risk ...... 3-109 3.1.3.15 Landscape ...... 3-109 3.1.3.16 Access ...... 3-113 3.1.3.17 Overall assessment of the range of information presented ... 3-115 3.1.3.18 Summary table for environment and land management ...... 3-117 3-1 3.1.4 Rural Economy and Quality of Life ...... 3-123 3.1.4.1 The structure of the rural economy ...... 3-123 3.1.4.2 Barriers to creation of alternative employment opportunities ...... 3-125 3.1.4.3 Micro business formation and tourism ...... 3-126 3.1.4.4 Provision of services in rural areas ...... 3-132 3.1.4.5 Infrastructure in rural areas ...... 3-134 3.1.4.6 Cultural heritage and the built environment in villages ...... 3-137 3.1.4.7 Human potential in rural areas ...... 3-137 3.1.4.8 Local capacity for development ...... 3-139 3.1.4.9 Overall assessment of the range of information presented ... 3-140 3.1.4.10 Summary table for rural economy and quality of life ...... 3-142 3.1.5 Leader ...... 3-147 3.1.5.1 Coverage during the 2000-2006 programming period ...... 3-147 3.1.5.2 Summary table for Leader ...... 3-149 3.2 The strategy chosen to meet strengths and weaknesses ...... 3-150 3.2.1.1 The Agricultural, Forestry and Food sectors ...... 3-150 3.2.1.2 Environment and Land Management ...... 3-155 3.2.1.3 Rural Economy and Quality of Life ...... 3-158 3.2.1.4 Leader ...... 3-161 3.2.1.5 The Delivery Strategy ...... 3-161 3.3 The ex ante evaluation and Strategic Environmental Assessment ..... 3-165 3.4 Impact of the previous Programming period ...... 3-166 3.4.1 Impact of EAGGF financial resources allocated to rural development ...... 3-166

3-2 3 Analysis of the situation, the strategy and the ex ante evaluation

3.1 Analysis of the situation in terms of Strengths and Weaknesses 1. This Chapter provides an