Britain's farmers will survive only by diversifying into other activities, an all-party committee of MPs said today.

"In future, farming will survive only by assuming more roles, including environmental maintenance," they said.

And a Wharfedale farmers' leader said local farmers were already heeding the call.

Michael Rhodes, secretary of Wharfedale NFU, said: "It doesn't come as a particular surprise. I think it's unfortunate but it's inevitable.

"As we look into the next century what have been regarded as small farms will have to look at other ways of supplementing their income. It's sad, but farming isn't immune from change."

Mr Rhodes said a large number farmers already diversified in the Bradford area, including Manor Farm at Esholt which had been turned into a working theme farm.

Other farmers were providing bed and breakfast, driving cattle wagons and putting up dry stone walling to supplement their incomes.

The Agricultural Select Committee said farmers must also work towards more environmentally-friendly farming methods. The EU was proposing new legislation to make such measures obligatory.

And the committee said farmers should face up to the prospect of shrinking subsidy payments. Reform of the European Union Common Agricultural Policy (CAP) would mean other areas of the rural economy would become entitled to them.

The MPs were reporting on proposals for rural development in the whole of the European Union.

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