The report is divided into two sections. Part I analyses physical and financial data collected from 381 farms in the eastern counties of England (Bedfordshire, Cambridgeshire, Essex, Hertfordshire, South Lincolnshire, Norfolk and Suffolk) for the harvest year 1998. Performance is analysed by district, farm size group and type (mainly cereals, mixed cropping, dairy with arable, pigs and poultry, mixed farms and fen arable). A review of the farming environment in 1998/99 is also included. Part II looks ahead to future policy developments which may result from both internal and external forces. Internal forces include the England Rural Development plan whilst external pressures will arise from World Trade Organization discussions. Key findings are: (i) the lowest farm incomes (for ten years) were recorded on combinable crop and livestock farms; (ii) returns on pig farms declined further; (iii) low prices prevailed for commodity cereals, combinable break crops, milk and all meat; (iv) sterling strengthened against European currencies; (v) exceptional potato prices were available in 1998 restoring fortunes of Fen Arable and Mixed Cropping farms; and (vi) borrowing was inexpensive in a year when indebtedness by farm business increased.
