Farmers have been urged to rely less on traditional markets and become more entrepreneurial by the government.

Lord Haskins, the man appointed as the rural recovery co-ordinator by Tony Blair, unveiled his long-awaited report on Thursday in which he called for more short-term help, including the temporary deferrals of rates and income tax, but did not recommendations for more long term support to the economy.

To ease the blow he announced an extra £40 million for the business recovery fund.

Haskins focused most of his recommendations on the farmers who have seen their businesses destroyed by the foot-and-mouth crisis and the slump in tourism in areas including Cumbria and Yorkshire.

Proposals for a nationally agreed environmental management standard for farms were also included.

Lord Haskins said the government was prepared to help farmers who were willing to change the way their businesses operate - but only in the short term." A combination of continued support from the banks, and the government and its agencies, during the next few months, will enable those farmers and businesses who deserve to fight another day, to do just that. But in order to do so, they in turn will need to be resourceful and enterprising in tackling their problems."

Colin Breed, the Liberal Democrat shadow agriculture minister, called the report "an insult" to the UK's farm industry.

"Lord Haskin's call for farmers to be more enterprising is an insult. Over the past few decades, British farmers have become amongst the most efficient and animal welfare-friendly in the world. This is despite farmers seeing their incomes slashed so that most are now unable to make any profit," he said.

"Lord Haskins should look to government policy in respect of the uncompetitive pound, the lashings of red tape and the appeasement of the greed of supermarkets before criticising the agricultural industry."