The FRBG said the average farm balance sheet showed a considerable improvement, with net assets rising, but profits are still not at a level where earnings can be retained, so the increase in balance sheet values reflects continued investment in farm businesses, both from farming sources - such as the sale of surplus land and buildings - as well as non-farming earnings.
Two-thirds (66%) of FRBG members surveyed felt that the diversification activities offering most potential to their clients were letting land and property.
All this points to the continuing need to develop alternative incomes to traditional family farming, says the FRBG, with the vast majority of accountants (88%) reporting that their farming clients were looking at diversification.
FRBG North-East spokesman Andrew Ayre, a partner at Greaves West and Ayre, Berwick, said: "The survey confirms the continuing pressure on cash flow of the long-delayed 2005 Single Payment Scheme.
Farms in the North also showed the biggest annual growth in turnover ( up 24pc to pounds 275,453 ( although this remained below the national average of pounds 296,269 (up 11pc), according to the FRBG research.
The FRBG liaises closely with a wide range of external organisations, government, MPs and European bodies through a network of contacts, regular meetings and consultations.
is represented in Cumbria by Robert Wharton of Dodd & Co, but would also like to have someone from Northumberland, Tyne & Wear, County Durham or Tees Valley.