Tir Gofal good for rural economy, says new study

Rural Europe, February 2005

The Welsh agri-environment programme Tir Gofal created the equivalent 112 full-time jobs in the wider local economy in 2003, as a result of increased farmer spending - and represented an important driver of farm management change in Welsh agriculture.

This was the conclusion of a new socio-economic evaluation carried out by Agra CEAS Consulting for the Countryside Council for Wales (CCW) and the Welsh Assembly Government.

Almost three-quarters of survey respondents indicated that they would not have made the management changes that they did without the support of the scheme.

More far-reaching change

Even where changes would have been made, support under the scheme ensured that they were more far-reaching. However, these findings differed by farm size, with larger farms (with more than 200 hectares) more likely to require support to make management changes than mid-sized and smaller units.

The main aim of Tir Gofal is environmental, but the Agra CEAS research shows that the scheme also has a small but positive economic impact, both on-farm and in the wider economy.

Whilst the scheme does not have a significant impact on revenue, it changes the pattern of expenditure in favour of contractors with specialist skills, and away from fertiliser and plant protection products.

The majority of farmers surveyed who had experienced an increase in household income claimed that Tir Gofal had been a positive influence, with a quarter claiming that the scheme was the main reason their household income had increased since participation.

70 extra labour days per year

However, the scheme also results in increased labour requirements, amounting to around 70 extra days per year. Almost half of this additional labour demand is met by contractors, with a similar amount met through existing farm resources.

The study found that every pound paid out under Tir Gofal in 2003 resulted in £1.50 spent in the wider economy. Of this, almost three-quarters went to Welsh industry, almost a quarter to Welsh households and the balance to taxes and imports. Although the impact in the wider economy is fairly small, this is likely to be targeted in remote rural areas where it will have a disproportionate impact.

The CCW press release for this work can be found at:
http://www.ccw.gov.uk/news/index.cfm?action=Press&ID=747&lang=en

For more information please contact Dr. Dylan Bradley in the Wye office.

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