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European agricultural and environmental policy has evolved considerably over the last 11 years. In this article the changes in farm businesses in an Environmentally Sensitive Area in South Shropshire are evaluated based upon two surveys with the same farmers in 1997 and 2008. The rate of participation in the environmental scheme had increased significantly at a time when Government led goals in this area had developed and become more output focussed. A combination of policy, market and animal health status changes had encouraged a number to leave cattle production and though remaining with stock and grass they had decided against any extensive development in the direction of business diversification or pluriactivity with or without Government encouragement. The participation in the environmental scheme did not appear to be an aspect of farmers’ entrepreneurial tendencies. A pilot sample of farmers was then classified using the conceptual framework developed by McElwee and found to be predominantly Type I, characterised by traditional land-based economic activity. This leaves the future of this group in some uncertainty with two significant forms of financial support, the environmental scheme and the Hill Farm Allowance due to close.

Empirical evidence from the sugar sector of the UK has revealed that farmers in this sector adjusted to the EU reform of the Sugar Regime either by diversifying production or by specialising in a small number of crops. This article hypothesises that these strategic choices were influenced by a number of economic and non-economic drivers. A probit analysis conducted with a sample of ex-sugar beet farmers was used to test this hypothesis. The result showed that only non-economic drivers (i.e., social-psychological variables) were significant in explaining the strategic choices made by the farmers. This suggests that traditional analyses based purely on economic considerations have to be considered with caution.