URGENT changes in planning rules are needed to encourage farmers to stay in the industry, rural business advisers say.

Complex planning regulations and the cost of applications are frustrating plans to diversify in the wake of foot and mouth, according to the Institute of Chartered Accountants' farming group.

Group chairman Aubrey Davies said a revision of planning procedures was essential to encourage farmers to develop new and profitable businesses.

"It's important that favourable consideration is given, for example, to applications for advertising signs and hard standing for storage, as well as applications for the change of use of farm buildings," he said.

Last month the ICA's farming group survey highlighted the fact that many farmers could not afford to diversify. In the North-west, only six per cent had any diversification, accounting for less then 10 per cent of their income.