THE RURAL DEVELOPMENT PROGRAMME FOR ENGLAND 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 overview of the agriculture, food and forestry sectors in England, the rural economy and employment, the demographic and resource situation, and the state of the environment. It draws out key variations between regions in England, and highlights key points of difference between the rural and urban economy. 3.1.1 The general socio-economic context of the geographical area 3.1.1.1 Rural areas in England 2. England is a country of some 50,351 square miles (130,410 square kilometres), and had a total population of 50.8 million in 2006. Roughly, 19% of the population in England lives in rural areas, using the rural definition (a National Statistic used for England and Wales) and data from the 2001 Census. England has borders with Scotland of 60 miles (95 km) and with Wales of 150 miles (240 km), and 5,325 miles (8520 km) of coastline. Definitions of Rural Areas 3. The data given for rural areas in this section are drawn from a variety of sources. These may define “rural” in different ways. In 2004, to try to achieve some consistency in rural statistics, the Government introduced a rural definition for identifying rural areas in England and Wales, which is a National Statistic1. The OECD uses a different approach to defining rural territories across its Members. The OECD definition of rural areas is commonly used by the EU and is mentioned in the Implementing Regulation and in the Community Strategic Guidelines for Rural Development. There are advantages and disadvantages to both of these definitions. 4. The OECD definition of rural and urban areas is based on identifying territorial levels within countries, and then classifying each territory as Predominantly Rural (PR), Intermediate (I) or Predominantly Urban (PU). Territories are classified according to the proportion of population living in the relevant population density. PR areas are defined by more than 50% of the population of the territory living in an area with a population density of less than 150 people/km2. 5. The OECD territories are defined at the UK‟s NUTS32 level of geography (e.g. at County Council rather than Local Authority District level). Because England is relatively urbanised and densely populated compared to much of the rest of the EU, the OECD definition means that England actually has no PR areas3 and therefore zero population classified as living in PR areas4. Therefore, this definition is not useful for examining rural issues in England, which is characterised by more heterogeneous regions than may be the case in other OECD or EU countries. 6. An advantage of England‟s own rural definition is that it takes into account population density as well as the distances between settlements. The OECD 1 Scotland, which has more remote areas than England, has developed its own definition of rural areas. 2 The abbreviation NUTS stands for "Nomenclature des Unités Territoriales Statistiques”. NUTS is the geography used as a harmonised base for European statistical purposes (NUTS