THE economic consequences of the foot and mouth outbreak would affect not only farmers but the whole rural community, according to Mike Pugsley, agricultural manager with HSBC Bank.

"Hauliers, abattoirs and farmers marts will be directly affected," he said.

"However, the indirect effect on rural-based industries will be critical, particularly in tourism.

"The need for good communication between customers and the bank has never been more essential."

He explained that initially cashflow was likely to be the main problem and a simple increase in the overdraft facility was the most appropriate way to ease short-term pressure.

With time, longer term solutions would have to be considered which could include converting part of the overdraft into loans or restructuring the whole borrowing facilities.

Mr Pugsley welcomed the decision by MAFF to pay premium payments early and the confirmation that £156 million of Agrimonetary compensation was to be claimed by Government.

"Other questions are being asked and require precise and timely responses to aid pressures on those affected," Mr Pugsley said.

"They include: When can affected farms be restocked? What are the implications for milk quota and for short term alternative land usage with other crops over the coming season?

"When this outbreak recedes, what are the ramifications for livestock transportation and tractability in the light of the spreads of this dreadful disease?"

He added: "It may seem difficult to appreciate at present, but UK agriculture has much to be proud of.

"Let us all build on those strengths for the long term. In the short term, let's keep in touch and strengthen all lines of communication, not just between customer and banker, but also with other parts of the food chain.

"There's never been a more important time to talk."