YET MORE bad news was given to North Yorkshire farmers today after a top agricultural college revealed that farm profits have dropped 25 per cent on last year.

A report on 233 Yorkshire farms by Askham Bryan College's rural business research unit shows nearly all types of farms suffered a fall in profits in 1996/97.

The average management and investment income was £27,309 compared to £36,266 in the previous year.

The biggest falls in profits were on the general cropping farms. This was due to the big drop in returns from potatoes.

Steven Prest, of Castle Farm near Slingsby, farmed around 120 acres of potatoes last year.

He said: "Potato prices have been depressed for more than two years now - and they're on the way down even further."

The report also showed that wheat output per hectare dropped by 10 per cent due to the fall in market price for corn. In the livestock sector dairy output also fell slightly as a result of lower cull cows and calf values.

On a more positive note, the report also shows that the 1996 cereal harvest was successful with wheat averaging 8.6 tons per hectare, and barley 7.2 tons per hectare - record average yields for Yorkshire. It was also an exceptional year for oilseed rape with record yields averaging 3.9 tons per hectare.

Robert Hicks of Malton NFU, said: "Since last year things have got catastrophically worse. There are a great number of farmers that are suffering real hardship - and a majority will go out of business over the next few months.

"Some farmer's profits are not only down on a couple of years ago - they're practically non-existent."

Meanwhile, the NFU's new president Ben Gill was meeting today with Agriculture Minister Jack Cunningham and European farmers' leaders.

On the agenda were issues including the UK presidency of the European Union, Agenda 2000 and the WTO negotiations.

Mr Gill said: "This is a crucial time for UK farming, particularly as the UK holds presidency of the EU. It is vital that a strong and constructive dialogue is maintained with Government and with Europe in order that farming's best interests be fully served."

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.