FARMERS are struggling to survive on half the average national wage, according to figures released yesterday.

A new survey has revealed that the continuing crisis in agriculture has left farmers in the North-East and North Yorkshire earning an average of less than £200 a week, with the national average farm income down to £9,500 a year.

The situation has fuelled forecasts that an increasing number will be forced to sell up.

Dairy farmers in the region are among the worst hit, with a drop in profits of 37 per cent over the past 12 months.

The figures were compiled by the Institute of Chartered Accountants in England and Wales, whose spokesman for the North, John McGrother, said it painted a gloomy picture of the industry's future.

He said: "Some farmers are going to face a stark choice - diversify or sell up. I can see a situation where we will have fewer farmers, as those who decide to continue buy up neighbouring land and work bigger areas."

"The overall picture is one of a steadily dripping tap of continuing decline."

The survey showed half the farms were continuing to see a fall in profits, with one in five reporting making a loss.

An NFU North-East spokesman said the findings confirmed earlier research which showed hill farmers taking home just £2,000 last year and pig and poultry farmers losing an average of £8,000.

He said: "Clearly this is unsustainable and in ten years time there will be a lot fewer farmer than we have now."

He said the biggest problem was the strength of the pound, which made UK farmers uncompetitive against EU rivals, but the NFU was also pressing the Government to cut the amount of red tape in the industry.