Knight Frank have called on those who live in and support the countryside should work together to support this vital part of the UK economy.

In their latest Agricultural Brief, head of rural consultancy, Sandy Douglas, says: "This time last year, foot and mouth disease was perceived to be the straw that might break the camel's back. It didn't and we have seen a recovery in the beef and sheep sectors and British beef is now back in the shops on the Continent.

"Generally, there are glimmers of hope that we could see some improvement in the profitability of agriculture, but there still needs to be some restructuring, greater efficiency and a concentration on the marketing of commodities.

"Agriculture must be set in the context of the countryside as a whole and, as shown at the Liberty and Livelihood March in London, there is a raft of bodies to be enfranchised.

"Added to the depression in UK Agriculture is the unfortunate and unnecessary rural/urban divide, which is based perhaps on jealousy and, certainly, a degree of ignorance. It is vital that those of us who live in and support the countryside and country people fight our corner.

"The agricultural estate has, for centuries, provided jobs and community facilities together with wonderful landscapes and architecture.

"Its traditional income has fallen significantly and its core eroded through taxation. Lowland forestry, for example, rarely makes any profit and the Schedule B/D tax advantages, which used to contribute to viability, no longer apply.

"There are a growing number of people who want to live and invest in the countryside, to employ local staff, provide work for craftsmen and build the great houses of the future.

"The Government should create an environment through tax breaks and planning changes to encourage this flair with genuine and lasting improvements to the rural fabric and not be distracted by legitimate country sports."

As expected, Knight Frank saw a busy year for the sale of farms and estates across the country. James Crawford, of the country department, said: "Overall, a limited supply of properties for sale has generally kept the market tight and prices reasonably buoyant."

He added: "Farmers determined to stay with agriculture long term and consequently looking to spread their overheads, account for the lion's share of the buying interest from the farming sector.

"Strong demand from amenity and 'lifestyle' buyers continues to provide a competitive edge to many sales. As a result, we have seen a much greater tendency towards the lotting of a property as this allows the market to cater for bids from both types of buyer and hence maximise values."

Although farm incomes continued to decline in 2002, the low cost of borrowing did much to save off the threat of closure for those struggling with a high level of debt.

Knight Frank saw prices rise by around 10% on average for a typical residential estate. Bare commercial arable land remained little changed at around £2,500 per acre.

Mr Crawford continued: "In all sales, quality remains the key, with the more outstanding properties continuing to attract above average prices. However, these are few and far between, and only for the very best will buyers be persuaded to spend at the highest level."