Ten days have passed since Emmerdale Farm Limited was formed. Jack has supposedly joined Marian on her cruise and Jameson's Farm now belongs to the partnership of the Sugdens and Wilks. Sam parades around in his new suit - acquired from part of the money he received for selling his share of the farm to Henry. Preparations are underway for the sheepdog trials. Amos is running the beer tent with the help of Jerry, a local man. Trash, a well known tramp is wandering around the showground and three local youths try to chat up three girls. Henry discusses the possibility of Marian joining the local hunt set with the local squire, George Verney. Jim Latimer, a local youth follows one of the girls - Sharon Crossthwaite - as she makes her way home along the river, he catches up with her and makes her feel very uneasy.