A RETAIL regulator should be appointed to stop supermarkets amassing large profits at the expense of farmers, the Liberal Democrats urged today.

They want councils to use planning powers to encourage local farmer markets.

Country of origin labelling should be vigorously enforced and the high welfare and hygiene standards of British agriculture promoted.

Colin Breed, Liberal Democrat rural affairs spokesman, said: "Supermarket dominance is damaging British farmers and destroying the traditional markets.

"Farmers should be supported in getting a fair price for their produce."

Unveiling his party's Roots to Recovery rural policy, he warned all EU countries should treat European directives in the same way.

He stressed the UK "gold plated" many directives while other countries interpreted them to suit their needs.

The rural document also states that:

Regulation hampering agriculture must be cut.

Farmers should not have to bear the costs of regulation - this should be recovered in the market or from the taxpayer.

Farmers should be rewarded, rather than just compensated, when they take on environmental and social roles in protecting the countryside.

Modulation should be increased to release greater funds for rural development. This scheme should be tiered to protect smaller farmers.

More Common Agricultural Policy funds should be allocated to rural development.

Rural development schemes should be administered through a single Countryside Management Contract.

Organic farming, integrated crop management and energy crops should be encouraged.

The Liberal Democrats want a five-year moratorium on commercial growing of genetically modified crops while their safety and benefits are investigated.

They are also calling for changes to pension and benefits payments to be postponed until the future of the post office network has been secured.

Funding formulae for local government should also take greater account of the cost of providing services in sparsely-populated areas.