LANCASHIRE farmers are running out of options to tide them over the worst financial crisis for many years. Profits have plunged to a quarter of what they were four years ago, and according to Roy Ramsbottom, North West spokesman for the Institute of Chartered Accountants' Farming Group, businesses are now so lean there is hardly any scope for economies.

"It's not just the farmers who are suffering, but the whole rural economy," he said.

"When farmers make money, they spend it but if they can't afford to spend, vets, garages, machinery suppliers, feed merchants and a whole range of contractors are all affected".

Mr Ramsbottom said advising farmers to reduce their overheads was of limited value because most had already cut to the bone.

"Many farmers have diversified into things like equestrian centres, golf driving ranges and farm shops, but it largely depends on where you are for it to succeed," he explained.

"Others have been forced to take part time jobs away from farming, but as with diversification, there's the danger of losing the focus on farming".

Mr Ramsbottom said he knew of one farmer who had taken a job as a debt collector and another as a cricket coach, but it was difficult to do a part-time job and run a farm as well.

Forming co-operatives was a possible option, and some machinery-sharing groups had been formed in Lancashire and Cheshire, but co-ops were more viable in areas where there was large-scale arable farming.

The latest survey by the Institute of Chartered Accountants' Farming Group revealed a 23 per cent fall in profits last year, and a drop in farm incomes of nearly £3,000 to an average of just over £9,500.