THE annual Oxford Farming Conference puts a finger on the pulse of British agriculture.

This year it reflected concern at a decline in public sympathy for farmers, once so strong, which had been eroded since we embraced the CAP, with its ill-regulated production subsidies, stimulating over-production of "milk lakes", "butter mountains" and vast stocks of surplus grain. It was seen as a gravy-train for farmers.

Adopting the Continental system had meant the abandonment of the well-balanced British support for farmers, with aid payments capped by standard quantities which prevented wasteful over-production.

This system had avoided surpluses and was seen, I believe, as fair both by the tax-paying public and the farming community.

Reform of the CAP became inevitable. Now it has come at last and farmers must earn their living from selling their produce without the cushion of production subsidies. They will have complete freedom of choice in what they grow. They will be entitled to an annual "single farm payment" so long as they safeguard the countryside. Schemes to enhance the landscape and encourage wildlife will provide further support.

This 59th Oxford Conference focussed on Seizing the Initiative in a New World for Farming.

Lord Whitty, Minister for Food, Farming and Sustainable Energy, spoke about the UK's perspective in a global market.

"A vital key to the future must be a better relationship between farmers and growers and the rest of the food chain," he said.

"The farmer's share of the retail price of food was below 50 per cent in 1950; by 2002 it had fallen to less than 40 per cent and now stands round about 34 per cent."

Canada's Deputy Minister of Agriculture, Leonard Edwards, spoke of the problems of surviving in the Global market.

Food exports are the key to Canada's economy in a competitive field where Brazil has now overtaken Canada as the third-largest food exporting country.

"We are working to brand Canada as the world leader in food safety, innovation and environmentally-responsible production," he said.

"Our hard-grain bread wheat is the best. Almost two-thirds of our exports go to the USA and it was a disaster when their border was closed to our beef following a single case of BSE."

As always at Oxford, the most stimulating contributions come from farmers who have made their own success stories.

Donald Macpherson, from Berwick-upon-Tweed, gained a Nuffield Scholarship to find out why the Australians and Americans are 10 years ahead of us in producing consistently good beef.

He has built his considerable business on direct sales, mainly in farmers' markets, of well-hung and tender Angus beef.

He urged the adoption in the UK of a beef quality grade such as MSA (Meat Standards Australia) to reassure customers and give the catering sector more faith in the consistency of British beef.

Kent farmer Douglas Wanstall built up a big retail business from small beginnings with free range eggs. He extended the family partnership from 650 acres to over 4,500, with vegetables and wholesaling, as well as biofuel production, converting used vegetable oil into biofuel. A food processing enterprise, started in 2003, turns agricultural produce into ready meals.

William Chase built up a big potato enterprise at Tyrrells Court Farm, Herefordshire, to supply supermarkets.

"But there became too many growers supplying a shrinking market as people turned to convenience foods," he said. To research crisp production he went to Spain, Canada and USA, after tests with a small fryer. By June 2002, after set up costs of £2m, his first samples came from his half-finished factory.

Angus Janaway acknowledges the enterprise of his grandfather who had built up a big business from his farm in Dorset supplying goods for soldiers going to the First World War, as well enormous quantities of hay. He bought more land and went on buying farms through the Depression.

"This has given us a very big agricultural base of 1,200 acres in Hampshire and 100 in Berkshire, and enabled me to diversify widely," explained Angus.

"We focus on seed production, including herbage seed and morphine poppies. We are also involved in industrial and residential property, road reconstruction and film locations. Other activities include a Polish estate, a farm shop, seed potatoes in Scotland and cauliflowers in Cornwall."