`Almost half' farmers in North expect to lose out.

Byline: By Jennifer Mackenzie 

Almost half North farmers believe subsidy changes arising from the Mid-Term Review will leave them worse off, according to a new survey.

Research conducted by the Institute of Chartered Accountants' Farming & Rural Business Group (FRBG) found that 43pc ( four out of 10 ( of Northern farmers expected their business to suffer as a result of the review.

This was the highest in the country and compared to just 29pc nationally who felt the proposals would have a negative impact, according to the FRBG's annual farm profits survey.

Responses from North farmers also showed that 42pc thought the review would make no difference, with one in seven (14pc) believing they would "probably" be better off, as against the national average of 52pc and 16pc respectively.

Keith Proudfoot, the institute's regional manager, said: "These findings reflect the concern among Northern farmers about the possible impact of the single payment system.

"So it is perhaps timely that the Mid-Term Review will be one of the key issues being addressed at our first regional farming and rural business conference in Northumberland next week."

The event, at the Blue Bell Hotel, Belford, next Wednesday (July 20), will feature speakers from the North East Rural Affairs Forum, including chairman Miles Middleton.

A few places are still available and further details can be obtained from Marie Rice on [phone] or email [e-mail]

Meanwhile, Mark Hudson, president of the Country Land & Business Association, has warned a rise in farm profits should not be viewed as a sign of robust health for the sector, but "a reality check".

Speaking at the annual conference of the ICAEW's Farming & Rural Business Group in Peterborough, Mr Hudson said farmers must acknowledge the changing support structure under the new single payment scheme.

"Although the ICAEW's latest survey confirms an increase in farm profits, the challenge facing the sector now is to adapt to the new support regime, decoupled from production, or face a potential decrease in profits," he added.