THE agricultural recession shows no sign of abating.

A random survey of 236 farms in Yorkshire and Cleveland has shown that each made a major loss for the second year running.

The survey by Askham Bryan college reveals that each recorded a negative management and investment income of £8,635 in 1999/2000.

The report, which is used by MAFF to forecast farm incomes and trends, says the only consolation was that the losses were not as high as reported in the previous year.

But it goes on to state: "Unfortunately there is little prospect of any respite in the current financial year, especially in the arable sector, with further falls in product prices and rises in input costs."

Wheat yields in 1999 reached 8.6 tonnes a hectare, equal to the record harvest of 1996. but the average price of £75 a tonne, compared with the 1996 figure of £100, a tonne puts the situation in perspective.

Barley yields were also higher than the previous year at 6.4t/ha and most crops showed some improvement, except for potatoes, which fell by 44pc, mainly because of lower prices.

The livestock sector saw a 2pc increase in output, with modest price rises in some sectors.

Fat cattle rose by 8pc to average £480 per head while average milk returns fell by 7pc per cent to 17.7p a litre.

Askham Bryan, which is the only college taking part in the farm business survey, said the negative management and investment income (MII) was a clear indication of the continuing serious financial position of the agricultural sector.

The MII is the difference between the total output and the total costs, including the value of the manual labour of the farmer and his wife.

It is the amount left to pay for the managerial skill of the farmer and to cover the interest on tenant-type capital invested, whether borrowed or not.

The report, Farming in Yorkshire 1999/00 is available from Askham Bryan college for £15. Contact Anne Allison on 01904 772219.

l Many farmers could be entitled to claim the working families tax credit, which could be worth more than £80 a week depending on circumstances.

The Country Land and Business Association say it is available to farming families just as it is to other employed or self-employed people.

Capital in the business including land, machinery and livestock, the value of the home and personal possessions are excluded from the calculations.

The Tax Credit Helpline can advise on 08456 066668.