The National Farmers' Union is holding a special summit to highlight the threats to the rural economy from growing redundancies and a halving of farm incomes.

Union President Ben Gill delivered a protest letter to Downing Street and called for an urgent meeting with the Chancellor of the Exchequer Gordon Brown.

Some farmers earn less than £5,000 a year

A new rural charter was also being signed by agricultural business leaders, farmers and workers. It urges the government to take steps to lower the value of sterling and interest rates.

The summit comes after the announcement of the closure of Banbury Market in a week's time. The plunge in beef prices, together with the strength of the pound which makes it hard for farmers to compete abroad, is being blamed.

Mr Gill said the campaign was not a "one-off" situation, but was for the long term. He said some poorer farmers earned less than £5,000 a year.

"We need to make it clear to government the pressure we're under," he said.

Farming was more susceptible to the strong pound than other industries, he said. The government should adopt a pragmatic approach to planning and transport regulations, with less bureaucracy, to allow farmers to expand.

Tractor sales to April this year are down 47% on the same period in 1997 and investment in farming is forecast to fall by a third.

Agriculture Minister Jack Cunningham sympathised with the NFU's case but said the strength of sterling had declined recently.

Jack Cunningham: "We must protect farmers"

The EU's Agriculture Council had agreed reform of the Common Agricultural Policy, which would reduce restrictions on farmers, he said. It was important to protect farmers during the switch to a single currency.