SHEEP producers must look for alternative ways of earning income to survive.

"Look away from lamb to the landscape," said Dr Tony Waterhouse, head of the Scottish Agricultural Colleges hill research centre, telling farmers they could no longer rely on income from their flocks.

The environment, tourism and direct sales should all be thoroughly investigated.

Many sheep producers had difficult decisions to make. "But if we work hard, change and adapt, then we can find a future," said Dr Waterhouse.

He believed it was not just farmers who were having to change their attitudes but many of the conservation groups and bodies such as national parks.

Flexibility was a key quality required for the future.

Dr Waterhouse, who was addressing a BOCM Paul's meeting at Nawton, near Helmsley, gave some frightening statistics.

Sheep producers received four times more income through support payments than from their stock, he said, giving examples to show that only a lowland flock might survive without subsidies; the further up the hill the greater the inability.

A hill farm wanting an income of £20,000 from a flock of 1,100, producing 0.4 lambs per ewe, would need to increase numbers to 12,000 or earn £70 per lamb.

An upland farm wanting the same income from a flock of 800, producing 0.75 lambs per ewe, would need to increase numbers to 1,600 or increase the lamb price from £27 to £52.

Sir Donald Curry's Food and Farming Commission report said the environment was one way forward.

"I think it has to be the answer; it has to be the way forward," said Dr Waterhouse. "We have to look away from lamb to the landscape, tourists and the historical landscape."

A survey had shown that people genuinely did want livestock in the hills and in a tidy countryside. "The key is that we have to try and help these folk, who do not understand farming, see how to make conservation and farming come together," he said.

His own 2,500-hectare tenanted farm has improved access and gives walkers and visitors a leaflet to help them find their way around. It also has 16 wooden, heated, "wigwams" which received grants from the Scottish National Trust.

"The income from 16 wigwams is more than from our 2,600 sheep," said Dr Waterhouse.

They were very popular and were even fully booked last weekend. They cost only £4,500 each but can hold as much as a £40,000 lodge.

They were also planting a forest on a 1,000 hectare hillside which originally had only one tree. "There are now half a million trees and footpaths for tourists and walkers," said Dr Waterhouse.

Tenants were limited in what they could do on their holdings but that would have to change. They must be allowed to diversify and seek fresh income.

He believed those who wanted to remain as full-time sheep farmers would have to expand.

On the question of prices he said that, when price went down consumption went up, and vice-versa. "We are told the price to the consumer must come down but that producers must get a better price, so who is going to get squeezed out?"