A NORTH Yorkshire farmer told others that, despite recent encouragement to diversify into alternative crops, they should stick with the major cereal crops.

John Moor, of Great Eppleton Farm, near Scotch Corner, was speaking at a joint Home Grown Cereals Authority/GrainCo marketing forum and said that, when it came to profitability, wheat and barley continued to be the only feasible options.

But, with margins tighter than they had ever been, they must concentrate on growing them with the utmost efficiency.

"I have looked into diversifying with crops such as short-rotation coppice but the economics simply do not add up and I am not convinced that there is a realistic end-market," he said.

Mr Moor, who farms 800 acres of combinable crops, including 300 acres of wheat and 200 acres of barley as well as oilseed rape and set-aside, believes local farmers are at an advantage because of the comparatively good choice of potential end-markets for these crops nearby.

"We are blessed with having several millers, maltsters and potential exporters, within a reasonable catchment," he said.

That message was supported by the HGCA, which is keen to encourage farmers to re-assess local opportunities, especially the growing export markets for those near major ports.

"What the recent Curry report failed to mention is the need for farmers to be profitable," said Mr Moor. "With the export market accounting for more than 25pc of production, it is vital and we should make more of it.

"About 10pc of my combinable crops already go for export and I hope to sell more via this route in future."

While Mr Moor sells most of his cereals through the co-operative, GrainCo, he markets a third of his wheat crop himself. He believes that combination of marketing methods suits him well, but may not appeal to every farmer.

"I am fortunate in having the storage and drying facilities which allow me to sell forward and make the most of the futures markets," he said. "But growers must find a way of marketing that they feel comfortable with, whether it's spot sales, forward pricing, co-op marketing or merchant pooling. Certainly, when using the futures markets, farmers often feel more confident in groups.

"But, whatever you do, get to know your merchant and work with them to identify your local markets and then grow with these needs in mind.