THIS year was one of opportunity and also a watershed year for agriculture, said Reg Haydon, national chairman of the Tenant Farmers' Association.

In spite of uncertainty and concern over how CAP reforms would work, it would offer the chance to take stock and make decisions about the future which might have been impossible before.

The new Single Payment Scheme meant producers could review farm enterprises purely on the basis of their market returns, said Mr Haydon.

"Looking at current farm gate prices, it might be difficult to foresee which enterprises will continue to be profitable without direct subsidy," said Mr Haydon. But it was also difficult to predict how those prices would respond to changing production at national level.

Opportunities might also arise for some to retire from, or otherwise give up, farming, as well as for new entrants.

"A significant number of owner occupiers are considering scaling back to give opportunities to new entrants and others to farm their land," said Mr Haydon. "Many with land on insecure tenancy agreements will let go of land they no longer require on shorter-term agreements.

"Smarter landlords, particularly of grassland, should develop secure arrangements with tenants to farm their land at rents in keeping with market realities, so as not to be left with land surplus to requirements."

The new Environmental Stewardship Scheme, with entry and higher level options, would give farmers, for the first time, an opportunity to enter at least a basic level environmental scheme.

Changes to tenancy legislation, agreed through the Tenancy Reform Industry Group, come into force towards the end of this year, giving tenants opportunities for more flexible arrangements with landlords and Mr Foster hoped landlords would grasp the opportunity to be more open handed with consent for diversification.