A new report which concludes that "if bovine tb is not rolled back, there could be dire and widespread consequences for the agricultural and rural business sectors of the South West" is entirely justified, says the region's NFU.

The NFU has welcomed the detailed assessment by the University of Exeter of the economic impact of bovine tuberculosis on farmers in the region.

But, though the current compensation system for those hit by the disease is as fair as possible given legal constraints upon the government, the Union has warned that proposals to cut payments could well be the straw that breaks the camel's back, forcing many out of livestock farming altogether.

Commenting on the study, South West NFU director, Anthony Gibson, said: "Even as things stand, the majority (79 per cent of dairy and 65 per cent of beef farms) suffered a net loss and government proposals to cut compensation will pile on the agony.

"Although the study detects only 'modest' current impact on the wider rural economy, it also reveals that one in six of the farmers surveyed had diversified away from cattle to reduce risk to their businesses - a trend which, if it gathered momentum, would have profound knock-on consequences for many other rural businesses.

"We have always been keen to work with the government on developing an all-inclusive partnership strategy for getting to grips with bovine tb, but the best answer to the cost of compensation is to eliminate the disease which means dealing with its reservoir in the wildlife population - principally diseased badgers."