The weakening of the postwar nexus of a productivist agriculture and a
distinctive system of regulating the rural economy has created new ch
allenges for British rural institutions. The task of diversifying rura
l and farm economies has required the institutions to change how they
operate. Using the concept of the local mode of social regulation (MSR
) we explore the interrelationships between the development of alterna
tive farming systems and the institutional regulatory environment, usi
ng as a case study an area in northern England. We conclude by demonst
rating how institutions cope with new policy challenges. The diversity
of local responses to this challenge is illustrated and the links bet
ween local and national MSRs are explored.