FARMING profits have fallen by more than a quarter in the past year, according to a new survey.

Evidence of an industry beset by marginal profits, limited diversification and a rapidly ageing workforce has been published in a survey by the Institute of Chartered Accountants.

The institute's farming and rural business group conducted the survey looking at 255 farms across England and Wales in the year leading up to April 30.

The study found the average farm profit had fallen by 26 per cent to £23,484, or £10,800 for each farmer.

It found that almost two-thirds of a tenant farmer's profit would be taken up by market rent, leaving only £30 per acre to cover both labour and return on capital.

These falling profits were the same across farms in the arable, dairy, beef, pig and horticulture sectors, with only poultry showing any increase.

The survey also looked at non-financial statistics about life on the farm, which showed damning prospects for the long-term future of the industry.

Almost half the farms surveyed reported that no family succession had been established to ensure the business was passed on to safe hands for the future.

It found the average age of the youngest full-time working member of the family was 43, with the average age of the oldest working member on the farm being 60.

This corresponds with the fact that the average age of a North Yorkshire farmer is now 58 - a figure which continues to rise. There was even an 89-year-old man still working full time.

The report stated that the promised diversification of farming into new businesses was failing to materialise. It found most diversification income still arose from "agricultural-related" activities.

North Yorkshire National Farmers' Union chairman Rosey Dunn said despite depressing statistics such as these, many farmers were cautiously optimistic for the future.

She said many farmers were concerned with the reform of the Common Agricultural Policy and not all diversification projects were proving a success.

"Generally we are a little bit brighter, but we would not like to go mad about it and say we are on the road to recovery or anything daft like that," she said.

Updated: 10:11 Thursday, July 03, 2003