A TOUGH year but one full of opportunity and options is how Richard White, farm business consultant with Strutt & Parker in Moreton, sees 2006.

"It'll be a tough year and anyone who thinks the trading environment is going to change for the better overnight is deluding themselves," he said. "But there are many positives on the horizon.

"That is how we view the future, full of opportunity and options, especially true regarding the Single Farm Payment which we view as a fantastic opportunity to re-think a rural business. It gives options, allows for change and facilitates renewed focus on what can be produced at a profit and what can't."

Mr White said that through various countryside stewardship schemes there was an opportunity to earn more. Farmers should welcome the opportunities and opt into an environmental scheme of some sort, not take a minimalist approach.

There was also an opportunity to diversity into growing other crops, such as bio fuels. "Our advice is to use the next few years to learn how to grow them to best effect as the demand for bio fuels will only increase," he said.

On dairy, while there was downward talk of milk prices at the moment, supply and demand imbalances should have a positive influence. The jury was still out on beef but it was difficult to see when or where significant upward movements in retail prices were going to come from.

Mr White said there was also good news in that the power of retailers was also coming under the spotlight more than it had in future years. Political leaders were optimistic that change was in the air on that front.

There was also good news on old farm buildings where the planning climate favoured conversion much more than it did.

"There was also a chronic shortage of housing and theoretically should mean a more relaxed attitude to planning consent. "The message is simple," he said. "If you've got old buildings or brown field sites, explore the potential."