Total income from farming in England last year was down 8.1 per cent to £3 billion, according to new figures from the Department for Environment and Rural Affairs.

However, farmers made £300 million from ventures such as local food specialities, holiday cottages and equestrian centres.

Lord Whitty, the food and farming minister, said: "The fall in income from farming is disappointing, but these figures also show that diversification is an increasingly important earner for farmers, and diversification activities are becoming more and more successful."