NEW Government figures show another dramatic slump in farm incomes, a drop of 72pc since 1995.

Provisional figures, issued by MAAF, show a 29pc fall in the real value of Total Income from Farming, from £2.40 billion in 1999 to £1.71 billion in 2000. This is equivalent to £7,500 per farmer to cover both salary and the return on business investment.

"It is soul-destroying for farmers and growers who are trying to work their way through this recession, said National Farmers' Union president Ben Gill.

"The primary cause of this crisis is the strong pound, which has hurt our exports and sucked in food produces abroad. Government must face up to the fact that its economic policy is responsible for this."

The MAFF figures do not provide breakdowns for each sector but NFU work shows that amongst the hardest hit will be those in the dairy and arable sectors, even after the additional agrimoney compensation announced this year. The volume of milk produced has been hit with prices continuing at ridiculously low levels of around 10pc per pint. Meanwhile cereal prices are as low as £60 per tonne, only half of the price a few years ago.

Increased costs for fuel and fertilisers have contributed to the fall in incomes, as has autumn flooding.

Figures were also released forecasting a slight improvement in hill farm incomes to an estimated £4,000 per farm in the year up to February 2001. However, the recent 8.9pc drop in beef prices due to the BSE crisis on the continent has not been reflected in these figures.

Mr Gill added: "If hill farm incomes do improve, this will be very welcome but huge uncertainties still remain for this sector, not least the changes to the support system which are currently being thrashed out."