MODERN farmers need the skills of the businessmen if they are to survive in today's tough conditions, a leading banker said at a meeting at Arrow.

Richard Waters, the regional agricultural specialist with Barclays Bank, was speaking at the Money Talks event, which was organised by Bidford-based Southern By-Products.

"I don't think the technical excellence of many farmers is matched by their business management," he said.

He pointed out: "Farming continues to be a business that needs a high level of cash to keep it going and farmers have got to manage their businesses well and look at what parts of it generate cash."

Mr Waters said it might result in some hard decisions having to be taken and he added: "There are not going to be as many farmers in the future, but there will be opportunities to go forward."

Prediction, he said, was an imprecise science. Recent trends suggested reduced subsidy support and even greater exposure to international price trends. The money in the business would have to work harder and more effectively.

"UK farming is going through rapid change and faces an exciting future, but also an uncertain one," he said.

Matt Witt, of Trident Feeds, said the Meat and Livestock Commission predicted that the current economic climate in sheep production was unlikely to get significantly better in the foreseeable future.

"For producers to stand any chance of making positive margins they must look at the efficiency of their lamb production, which meant monitoring inputs and outputs and then proactively reacting to their findings," he said.

Speaking about feeding dairy cows this winter, Dr Mackintosh, of Intermol, warned: "Don't over estimate the ability of grass silage to meet the requirements of cows."

David Lawrence, chairman of organisers Southern By-Products, said he was very pleased with the success of the evening.