A STARTLING 2,000 Yorkshire farm businesses have quit the industry in just five years.

In 1997 there were nearly 10,000 full-time farm businesses in the region but in June 2002 there were only 7,876 - a fall of 21pc. These figures are contained in the annual Farming in Yorkshire report compiled by Askham Bryan College for Defra.

The lost businesses have been victims of the economic recession in the industry.

The report says many of the 200 farms in its sample recorded a modest improvement in the 2002 harvest year, recording a management and investment income of £5,511 compared with just £632 the previous year.

Dairy farms, however, suffered a 50pc drop in income through lower milk prices. They reported the largest fall in management and investment income - down from £26,370 in 2001-2 to £12,100 in 2002-3. Milk prices fell by 12pc from 19.6ppl to 17.3ppl, while milk yields rose by 4pc to 6,900 litres a cow. The average herd size in the sample was 114 cows.

Other livestock farms reported an improvement in income, with hill farms showing the largest rise. The main reason for the upturn was the significant increase in sheep output, mainly through higher prices for finished lambs.

Crop yields were good, with wheat yields averaging 8.9t/ha on the farms sampled - a record for the survey in the region. Lower wheat prices of £64/t meant total wheat output, including area payment, per farm was very similar to the previous year at just under £800/ ha.

Barley recorded good yields of 6.7t/ha, but low prices of £62/t. Oilseed rape saw a 20pc improvement in output with better prices of £160/t and yields of 3.5t/ha compensating for a lower area payment.

Sugar beet yielded 50 clean t/ha and potato yields averaged 39t/ha. A fall in potato prices saw output fall by 8pc.

The report says the current financial year should see some further improvement in farm incomes. Cereal prices are significantly higher and there has been a small rise in the milk price. The sheep sector also remains strong.

However, the report says the changes must be set in the context of the dramatic decline in the sector.

Askham Bryan is the only college taking part in the Farm Business Survey for Defra. Copies of Farming in Yorkshire 2002/03 are available from the college, price £15. Contact Anne Allison on 01904 772 219.