| Summary: | The problem of a tendency to low incomes in agriculture is outlined, which is particularly marked on small farms, the problems of farm size definition and income measurement are considered, the relative importance of small farms indicated, and the general relationship of farm size and farm returns is examined. The underlying causes of income trends in agriculture are considered, as well as several possible moons of raising farm incomes, The usual explanation of low farm earnings is given some attention, and the effects of rapidly changing technology and economies of scale on the position of the small scale producer provide an explanation of a good deal of the low return to the operator's labour. Policies of general agricultural support and those more specifically aimed at small farmers are reviewed. An evaluation is carried out of the Small Farm (Business Management) (Scotland) Scheme, 1965, which is the most recent of the specific policy schemes, with the conclusion that such schemes are unlikely to offer a solution to the problem of low incomes on small farms, A more likely solution lies in structural adjustment in agriculture and various aspects of this process are examined. It becomes evident that agricultural adjustment cannot occur in isolation as it has profound effects in rural depopulation. To avoid depopulation, yet still allow some of the farm labour force to achieve occupational mobility requires regional development to take place at the sometime as agricultural adjustment, A policy to bring about a better agricultural structure, better employment opportunities in rural areas and a modernised settlement pattern is outlined, and shown to be financially feasible within the present public expenditure on agriculture and regional development.
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