FARMERS in North Yorkshire could be driven to bankruptcy because of unfair competition within the European single market, landowners claimed today.

"Our concerns for the future of farmers are real and relate particularly to our members who are heavily involved in the livestock sector," said Dorothy Fairburn, regional secretary of the Country Landowners' Association in Yorkshire.

The National Farmers' Union claims new Government statistics confirm their estimates that farm incomes have dropped by nearly 50 per cent.

The hardest hit in 1997 were lowland cattle and sheep farms with an income drop of 65 per cent in real terms.

Now landowners are making their fears known to the Government in a bid to avert a crisis in the country.

"The situation is so grim that our national president, Ian MacNicol, has written to the Agriculture Minister, Jack Cunningham, urging him to recognise the seriousness of what is happening."

In his letter, Mr MacNicol points to the fall in incomes, claiming the strength of sterling as the major factor.

"My members fail to understand why the Government will not utilise the agri-monetary provisions to mitigate the effect. Other member states with strong currencies do so," he said.

"We share your view of the needs for changes in the Common Agricultural Policy but while we are operating within it, there is no justification in discriminating against British farming interests by failing to use the provisions put in place to deal with discrepancies in currency strength."

Mr MacNicol's comments have also been passed on to the Chancellor of the Exchequer, Gordon Brown, and to the Environment Minister and the Social Security Secretary.

Calling for a meeting on the crisis, Mr MacNicol said: "While there may be a case for restructuring some sectors of the livestock industry, it should not be through enforced bankruptcy brought upon by unfair competition within the single market."

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