TRAFFIC misery, water pollution and an ugly building - those would be the consequences of a York farmer's expansion, residents claim.

But financial conditions for farmers are so tough, Jeremy Exley says he has no choice but to diversify.

Changes to Government subsidies mean Mr Exley's beef and arable farms are no longer profitable. Only his 2,500 fattening pigs are making any money.

Mr Exley has now applied for planning permission to build a livery stable off York Lane in Flaxton, and provide an area for horse riding on Strensall Common, York.

However the plan, at Woodlands Farm, has sparked anger from residents. Christina Steveni, clerk of Flaxton Parish Council, said: "The council is concerned at the overall impact of this proposal, and cannot agree that the development will not result in harm to the landscape character of the area.

"The proposal is in close proximity to a Site Of Special Scientific Interest and there is concern that this will have a direct impact on that site."

Dr Steveni said there were fears "the proposed development will have a significant and adverse impact on the traffic on the highway", and the stables would pollute the natural water course.

The parish council has lodged a formal objection to the plan.

But consultant Ian Pick, on behalf of Mr Exley, said: "Currently, the only enterprise operated at Woodlands Farm is the contract pig-rearing enterprise.

"However, this enterprise is not sufficiently profitable as to support the large mortgage on the property and to provide the applicant with a reasonable return to his unpaid labour.

"Therefore, there is an essential need for the applicant to develop a farm diversification initiative on the holding."

Mr Pick said Mr Exley wanted to build a 12-box livery stables in Flaxton. Horses from the stables would be ridden on neighbouring 2,000-acre Strensall Common.

The move was prompted by the new single farm payment system. Without a direct subsidy on cattle, and with wheat prices at about £60 per tonne, neither enterprise is profitable for small-scale farmers.

The future of the stable plan will be decided at a meeting of Ryedale District Council's planning committee tonight.