ENGLISH farmers must receive grant aid to meet new Nitrate Vulnerable Zone (NVZ) regulations, which demand increased slurry storage capacities.

Stephen Wyrill, national vicechairman of the Tenant Farmers’ Association, said it was not acceptable for farmers in Scotland and Ireland to receive them, but not in England.

Hilary Benn, Secretary of State at Defra, told last week’s Labour party conference that no funding would be available for extra slurry facilities.

But, speaking at the South-West Dairy Show, Mr Wyrill said dairy farmers would be particularly badly hit by the regulations.

He said: “All firms producing dairy costings are forecasting a major downturn in the fortunes of dairy farmers over the next couple of years, not least because of the extra costs that will be associated with meeting nitrate vulnerable zone regulations.”

Mr Wyrill, a tenant farmer near Richmond, said that, coupled with Mr Benn’s inability to control bovine TB and his “awful” decision not to allow the culling of TB-infected badgers, it was “little wonder that farmers are rejecting this government”.

At a time when there was growing concern over food security, and growing demand for local food, the Government should be ensuring a productive agricultural base could be maintained.

“However, the Government’s actions are driving more and more to leave the industry which will, if not stopped, be detrimental to the nation’s interest,” said Mr Wyrill.

A survey of more than 80 farmers at the recent Dairy and Livestock Event showed 27pc need extra slurry storage to meet NVZ regulations.

Barclays said the farmers produced 128m litres of milk – from 300,000 litres to six million litres each – in England, Wales and Northern Ireland.

More than half said they would carry out major investments over the next year. In addition to extra slurry storage, they will also invest in dairy cows, cattle housing and milk storage. On average, they plan to spend £140,000.

Nearly half (44pc) plan to increase milk production by an average of 18pc during the next 12 months – less than the 60pc, intending to expand in Barclays last survey in 2006.

Euryn Jones, Barclays’ national agricultural specialist, said the reduced number reflected the cautious mood among producers.

He said: “Although milk price is considerably higher than in 2006, farmers are also very aware that improved margins have been eroded by significant increases in production costs over the last two years.

“It is also the case that a number of those interviewed have already undertaken significant investment in recent years and have no need for further major investment.”

The producers expected milk prices to rise to an average 28p per litre in coming months.

Mr Jones felt those surveyed had been realistic about future prospects.

“Although UK supplies of milk are short, weakening global dairy commodity prices are likely to make it difficult for dairy farmers to receive any significant increases in the months ahead,” he said.