New research has indicated that British organic farming and the viability of the government's strategy on green agriculture is at risk.

The warning came as the government published a 21-point Organic Action Plan setting out a series of measures to increase the size of the UK's organic market.

Ministers aim to ensure that British farmers play an increased part in an expanded sector as Europe's agriculture shifts to less intensive "green" techniques.

But the move comes on the day that the National Farmers' Union warned that organic farmers in Britain are facing a cash crisis, with imports currently accounting for 75 per cent of the market.

Currently, less than 20 per cent of produce is sold directly to the supermarkets, while the catering sector takes just six per cent of production.

More than 80 per cent of sales are made over the internet, through box schemes, farmers' markets, wholesalers and co-ops.

However, the government argues that supermarkets have undertaken to sell home-grown organic produce, reducing dependency on imports.

Organic farming minister Elliot Morley welcomed the cross-sector cooperation behind the action plan.

"Organic production has an important contribution to make, alongside other sustainable farming methods, to the future prosperity of our countryside and the choices available to consumers,'' he said.

The government will also point to figures showing that the amount of land devoted to organic production in the UK rose by a third last year.

Ministers see the shift as a vote of confidence in plans to switch subsidies from food production to environmentally friendly sustainable farming methods, a move in line with the recommendations of the post-foot and mouth Curry report.

The government hopes the new action plan for organic farming will give a further boost to the sector.

The plan includes a new Advisory Committee on Organic Food and Farming to advise ministers on European organic standards, a pledge from retailers to identify opportunities for increasing British producers' share of the organic market, and government action to encourage sustainable public procurement of food.

And DEFRA is to set aside £5 million over the five years from 2003/04 to support the organic sector's research priorities.

However, the NFU warned that there were questions over the future sustainability of the domestic organic market.

"The message coming out of our report is clear - organic production in Britain is at risk," said NFU president Ben Gill.

The NFU report, based on a survey of 2000 organic producers, says the fall in profitability among organic producers has crippled business confidence.

Other concerns of farmers highlighted in the report are the volume of imported produce, confusion over organic label, indifference from the government, and differing production standards in the UK and EU.

The farmers' union is calling for a "fair price" for organic food, clearer labelling, help with marketing, "rewards" for environmental enhancement and better government data on organic production so farmers can assess the viability of their plans.

NFU organic chairman Oliver Dowding said: "We have the willingness, we have the expertise and we have the demand, but without sufficient returns and falling business confidence the future of organic production in this country remains uncertain."