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It is recognised that following the reform of the Common Agricultural Policy (CAP) farmers may go through a period of transition where they evaluate the different production alternatives available to them according to their existing situation, expectations and preferences. Drawing on a survey of Scottish beef and sheep producers undertaken in mid-2006, the purpose of this paper is to analyse the preferences of producers in relation to a number of possible economic strategies for production adjustment following CAP reform. The results show that the nature of adjustment is still uncertain, reflected in the high numbers of farmers that do not know what strategy to follow or that will maintain the same production levels despite the reform. However, a sizable percentage of farmers indicate their intentions to concentrate on the production of high quality output.


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