British farmers have had to cut costs, diversify into new businesses and even embrace part-time status but many are still struggling to survive in an era of falling government support payments and farmgate prices.
Charles Matts, who farms near Northampton in eastern England with his brother John, has boosted his income by converting farm buildings to commercial offices and workshops and forming a joint venture with neighbouring farms to cut machinery costs.
"Is it enough, that is my question," he said, noting that the prices for his arable crops have fallen while energy and fertiliser costs have soared in recent months.
Total income from farming in Britain fell by 8.9 percent to 2.5 billion pounds ($4.36 billion) in 2005, according to a report issued by Britain's farm ministry.
"Many, many farmers have made significant inroads into their cost structure and we have seen a very significant surge in diversification," said David Hudson, chief agricultural adviser for the Agricultural Mortgage Corporation, a division of Lloyds TSB Group.
European Union agricultural policy in the 1970s and 1980s encouraged farmers to maximise production of certain crops which attracted subsidies rather than focus on costs or quality.
Major EU reforms have sought to break this trend and British farmers will this year for the first time receive a single farm payment from the government which is linked to environmental goals rather than growing crops.
"The premise has changed. The original farm support was to create a degree of food self-sufficiency. That has now gone down the agenda. It is now about environmental and landscape managership for public benefit," said Mark Hill, partner in charge of food and agriculture at Deloitte & Touche LLP.
Neil Ward, director of the Centre for Rural Economy at Newcastle University, said subsidies had helped to keep inefficient farms in business.
"English farming has been locked in a commodity approach and there has been a relatively recent focus on quality. Farmers are being feather-bedded less and inevitably finding it harder going," he said.
The cash-flow problems of many farmers this year have been exacerbated by the failure of the British government to meet several deadlines for making the new single farm payments.
Hudson said the development of farm properties for commercial uses had enabled some farmers to boost incomes without the high costs associated with options such as farm zoos for children.
He added, however, that farmers in remote locations had fewer opportunities.
Farmers have also been encouraged to add value to their crops through branding which emphasises their local character as consumers show increasing interest in the origin of their food.
"They (farmers) have to add value and derive a premium price for their product," said Hill, adding that interest in locally grown food is beginning to take off but remains a small part of the overall market.
Alex Albone, who farmed arable crops in a remote area, northern Lincolnshire, found this posed a major challenge.
"(British farm minister) Margaret Beckett told us to sell local produce to local people which seemed like a great idea until you realise that if you live in northern Lincolnshire there are no people here," he said.
Albone, whose crops included potatoes, developed a new brand of crisps and linked up with other small producers to develop flavours such as Anglesey Sea Salt and Sea Salt with Somerset Cider Vinegar. The marketing of the crisps highlights that they are "made by farmers."
"People are asking, where does my food come from?" he said, noting he gets products such as cheese, sea salt and pepper from small family businesses and sells the crisps through about 500 independent retailers across Britain.
Analysts said traditional farming skills may no longer be the key to thriving in the industry.
"Farmers must now have highly trained financial management skills," said Hudson, adding that talent at husbandry is no longer sufficient.
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