Farmers are more optimistic about the future of their businesses, the latest State of the Countryside report has revealed.
Published by the Commission for Rural Communities on Tuesday (6 July), the document says most farmers are upbeat about their prospects. But one third still have no plans for succession within the business when they retire.
The value of UK-produced agricultural commodities stood at £19.3bn in 2009 and has increased markedly over the last five years, says the report. Agricultural income earned by UK farmers in 2009 totalled £4.1bn, it adds.
Livestock farmers in England experienced marked increases in their income compared to the previous year, but those of arable and dairy farmers fell. Income from non-agricultural activities is increasingly important.
Rural land is still required for food production in an era of increasing concern about food availability, says the document. But there is also an imperative to mitigate climate change through developing renewable energy and bio-fuels.
Commission chairman Stuart Burgess said the report offered an intriguing insight into how rural businesses fared in the economic downturn. Rural communities were resilient and resourceful, he said.
"While the recession has hit rural areas hard, with some rural areas experiencing greater increases in unemployment than urban ones, rural businesses have higher rates of survival.
Farm leaders said the document showed that the countryside was about farming and the environment. But that was no excuse for complacency, warned William Worsley, president of the Country Land and Business Association.
"The State of the Countryside Report may show the dynamism and resilience of the rural economy compared with other sectors, but that is no excuse for government indifference.
"The landscape and wildlife depend on the way in which land is managed. We therefore need policies in place that recognise this connection and promote both farming and the environment.
Government policies were needed to provide enough food and provide farmers with a secure and stable income. This would require greater investment in new technologies and development and in training.
"However, none of this can be at the expense of the environment. Water pollution and air pollution need to be cut. Soil fertility needs to be improved, and we must reduce the general deterioration in the natural environment.
"Most of these issues are dealt with at EU, rather than national, level. We therefore need a government which recognises that one of the biggest challenges it faces is to make the case in Europe for sufficient funding."