CASTLE Howard is to pull out of dairy production as it struggles to beat the farming crisis.

The stately home follows Ampleforth Abbey to become the second prestigious producer to abandon dairying in North Yorkshire in recent months.

Several hundred acres of Castle Howard will now be given over to organic farming.

Duncan Peake, agent for the farm, explained: "We need additional investment for new buildings and dairy equipment and the whole thing is not viable. As a result we are putting a large part of the farm into the organic conversion scheme."

Mr Peake said most of the Estate's 220 strong herd, which he described as "in the top 10 per cent performing herds in the country", would be sold.

The younger animals will be kept to create the farm's organic herd. A total of 500 acres is to be given over to organic production over the next 12 months.

Mr Peake said it was possible the farm will move into organic beef production instead. These changes wwould affect employment on the estate.

Mr Peake said: "It is extremely unfortunate. In the short term it will have an impact on jobs, but in the longer term we hope this will be a positive way forward for the farming strategy of Castle Howard."

Mr Peake said it was too early to say how many jobs would be affected, but confirmed at least two would be lost.

Simon Howard, owner of the estate, said: "The decision to withdraw from dairying has been an extremely regrettable and difficult decision to make, but given the lack of profitability in dairying, and the overwhelming need of the businesses at Castle Howard to support the restoration of the estate we are left with little choice.

"The decision to examine the organic farming option is nevertheless a positive one, and will hopefully help to sustain farming in the long term at Castle Howard."

John Greenway, MP for Ryedale, commented: "I think this just indicates this current recession and crisis within the farming industry is not restricted to just a few unprofitable small farms. They are all gradually being squeezed out of business."

Mr Greenway said the strength of Sterling was making matters worse and the Government was doing nothing to help the situation.

A spokesman for the National Farmers' Union said he was unable to comment on this individual case but said farmers were today receiving around 16 pence a litre for milk (10 pence a pint) when in 1970 they were receiving, in real terms, 35 pence a litre.

Back in April, Ampleforth Abbey threw in the towel and sold its dairy herd, which numbered 197 cows.

The Abbey blamed the break-up of the herd on dwindling milk prices and the prospect of having to buy expensive new equipment.

Peter Bryan, business manager for Ampleforth Abbey and College, said at the time: "This is the result of falling dairy prices which have made this part of our work unsustainable. The farm will continue and will stay in agriculture. It's just we're withdrawing from the dairy side."