NATIONAL Farmers' Union President Ben Gill used the opening of the Great Yorkshire Show on Tuesday to launch a blistering attack on Government economic strategy which he said had cost tens of thousands of rural jobs.

Mr Gill, who farms at Easingwold, said the low value of the euro against the pound was the biggest factor in wiping £4 billion off the value of farm products over the past four years.

He added that the Government's last budget had led to higher interest rates which exacerbated the difference between the two currencies.

Mr Gill said: "Farmers have been hammered by the over-valuation of sterling ... and it is clear that current Government policy is making the situation worse.

"But it is possible to modify current fiscal policy in a way that would help farmers ... without damaging economic growth and low inflation."

Mr Gill's speech coincided with a new report showing current Government spending plans will cost British farmers a further £150m.

The NFU-sponsored report, Re-balancing the Economy - An Alternative Approach to Economic Policy, says that the last Government budget effectively increased interest rates, exacerbating the strength of the pound.

Tens of thousands of jobs in rural areas were lost as a consequence, it adds.

Mr Gill said: "The Government must take heed of this heavyweight report in a constructive and urgent way to avoid long-term substantial damage to the traded sector of the economy."

The report urges the Government to: refrain from a pre-election spending spree; ensure new spending is on investments; provide 100pc tax allowances for the private sector to boost investment.

Mr Gill called on the Government to deflate the pound, claiming the farming crisis was now being reflected in businesses like Nestl.

He said: "The Government has got to stop hiding behind claims that there is nothing that can be done. We have to recognise that the pound is too strong and we have to make clear statements as to what we want to see happen."

PICTURE: TOP-RATED BEEF: Stockman David Cormack at the Great Yorkshire Show with champion Limousin bull Ryedale Orion from Hawnby, near Helmsley .