A MAJOR review of the competition laws should be carried out to help UK farmers compete in the new world after CAP reform.

Both Richmond MP William Hague and Ben Gill said farmers were being urged to co-operate and collaborate, but competition rules made it too difficult.

Imports were coming in from companies and co-operatives which dominated their markets in countries such as Denmark, Sweden and New Zealand yet, if UK farmers tried to co-operate, competition rules prevented or severely hampered them.

"We cannot inhibit our own producers with competition rules which limit them to a very small share of the UK market when there is an international market out there," said Mr Hague.

CAP reform will free farmers from the subsidy system, allowing them to grow and produce for the consumer and the market. It should allow producers to receive the market price for what they produce.

Mr Gill said it was important that trust was developed between all parties in the food chain. - and with politicians.

Mr Hague had been against the Ministry of Agriculture being axed and was highly critical of Defra, saying: "There is less focus in Westminster on agriculture than I have known since I have been there."

Mr Hague said Defra was not well run and highlighted a Commons committee which had recently accused it of failing in key areas. He did not find Defra ministers sympathetic to rural issues, but hoped the focus on agriculture could be re-established in the future.

Agriculture played a very important part in the British economy. "We have lost 67,000 jobs in six years - 15pc of the entire industry - but it still matters hugely," said Mr Hague.

In Richmondshire, tourism had bounced back after foot-and-mouth but it would not have been as successful if agriculture had not made the environment look the way it did.

Internal regulations and CAP reform must be checked to make sure they provided opportunities for farmers to create a profit.

He spoke of "inspirational" examples locally - the food and drink festival in Wensleydale, farmers' markets, and the Wensleydale Creamery and the farmers who worked with it.

It was a million miles away from ten or 20 years ago when consumers saw farmers as whingers wanting help from the state. "Farming is beginning to help itself and try to chart its own future. It is very welcome," said Mr Hague.

He warned, however, there were too few young people in agriculture and said that had to be addressed.