NORTH West farmers are on the breadline following four years of plunging profits new figures reveal.

The Institute of Chartered Accountants' Farming Group shows profits fell as much as 20 per cent from last year. Due to the enduring crisis farmers face -- such as BSE and foot and mouth -- fewer young people are entering the industry.

A national survey of 260 farms occupying more than 50,000 hectares revealed typical profits of £96 per hectare, significantly lower than the rent paid by tenant farmers of more than £100 per hectare. In the north west profits in the dairy sector fell by six per cent and in the mixed sector by four per cent.

Small farmers have been hit especially hard due to the low retail price of milk.

Roy Ramsbottom, north west spokesman for the ICA's Farming Group, said they were making no money and the outlook was dire.

He said: "Not long ago a pint of milk was the same price as a pint of beer but the difference now is more than a pound. Only a more realistic price for milk can save the small tenant farmers."