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 The BBC's Carole Walker"Deep and painful crisis"  real 28k  Dairy farmer Hugh Black"We've made no real money in three years"  real 28k |
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The government plan to tackle the farming's problems involves applying to Europe for money to compensate for the high level of the pound against the euro, in which agricultural subsidies are measured.
How the extra cash will be spent |
£26m this year to encourage restructuring of the pig industry, with further Treasury cash over the next two years
£22m to dairy farmers in "agrimonetary" aid to compensate for the high pound
£22m agrimonetary compensation to beef farmers this year
£22m agrimonetary compensation to sheep farmers this year
Charges for dairy hygiene inspections in England removed, worth £1m.
£60m support for hill farmers in 2000
£6.5m to help develop better business practices
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Mr Blair said: "Farming is not just an industry. It is a crucial part of our national way of life, of our countryside, of our people."
Announcing the £200m package, Mr Blair continued: "It is targeted on the dairy and pig sector, hill farmers, lowland beef and sheep producers.
"Some of it is tied to restructuring, so that we have a stronger industry, much better able to adapt to future needs... It will not, I am acutely aware, solve all your problems but it will answer some of the most urgent concerns put to me."
NFU president Ben Gill said he had been pressing for such measures for some time and told Mr Blair: "Your commitment is crucial to that."
The prime minister, accompanied by Agriculture Minister Nick Brown, also announced plans for a European centre for organic fruit and nursery stock, costing £2.3m.
 The British farm standard mark will help shoppers
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The government will also provide free consultancy to farmers seeking planning approval to diversify, increase the spread of mobile phone networks in rural areas and establish a £400,000 internet advice service.
The prime minister added: "Not for many decades has government and the farming food industry worked so closely at strategic level to define our common vision, the plan to achieve it, and the measures needed to support farmers in the current crisis."
But he warned that the aid would not end the "painful restructuring of the industry that has seen so much real hardship".
 Nick Brown and Ben Gill (left): "Long term strategy"
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"The package the prime minister has announced provides £200m of new money and gives us a breathing space to start with."
But Tory agriculture spokesman Tim Yeo said the extra money had come too late for many farmers.
"The extra cash is valuable although after a collapse of farm incomes and the loss of 20,000 jobs last year alone, in reality it is only a sticking plaster solution for an industry that is at risk of bleeding to death."
Liberal Democrat spokesman David Heath said the aid package did not go far enough.
"Many of the measures do not go far enough to reverse the decline in farm incomes," he said.
"Where the government has moved it is welcome, but in general it is too little too late."
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