More than half of Cornish farmers are living in poverty - the majority having been hit hard by delayed and incorrect Single Farm Payments - and the last decade has seen the industry decline by around a quarter, having also lost almost a tenth of its workforce since 2000, according to research released today.

These findings are part of a new report, Cornish Farming: Hope for the Future?', which has been commissioned by the county's MPs to investigate the dilemmas facing the local farming community.

Besides high levels of poverty and debt and a reduction in the industry's economic value and workforce, surveys conducted by the Liberal Democrat Team for Cornwall have also found widespread dissatisfaction with the Government's approach to farming amongst local farmers. Four fifths were found to have no confidence in Defra, and 84% have reported being unsatisfied with the Government's handling of Bovine TB, which poses a greater risk to Cornwall than other areas.

Matthew Taylor, MP for Truro said: "Our research shows the dire situation facing Cornwall's farmers, many of whom have been forced into debt because of the Single Farm Payments debacle, and who simply have not been able to rely on the Government to safeguard their interests.

"The innovation of the local farming community has been very impressive, and many have diversified and moved into new markets, such as organic foods, in the face of low prices for their produce. Cornwall's farming industry benefits from the natural advantages of the county's climate and geography, but without support from Ministers its future is in question".

Author of the report is Terrye Teverson who is the new Falmouth and Truro prospective parliamentary Lib-Dem candidate.

She spent a day shadowing Paul Gluyas, a Stithians farmer and former NFU leader, to better understand the problems being faced by the Cornish farming community.

Mr Gluyas' farm, formerly devoted to milk production, was visited ten years ago by then Prime Minister Tony Blair. Instability in the dairy industry has since forced him to move into beef and cereals.

Mrs Teverson's findings show that low prices and supermarket dominance have hit dairy, meat and poultry farmers hard. 89% of Cornish farmers say they are not satisfied with the fairness and price regimes between supermarkets and primary producers.

"My family were dairy farmers and spending the day out in the fields reminded me just how dedicated and hard-working these people are. What is very worrying is that many tenant farmers who are struggling on low incomes are trapped as even if they sell up they will not be able to afford a house nearby, and so will be forced out of their community," said Mrs Teverson who has twice fought the Falmouth and Camborne constituency.

"Although farmers have cautiously welcomed recent increases in milk and cereal prices, this is coming too late for a lot of people. The local farming community has been let down time after time in the past, and facing another Foot and Mouth outbreak and the potential spread of bluetongue disease, I am not surprised that so many of them feel worried about the future. Tackling excessive supermarket dominance is crucial to getting a fair deal for Cornish farmers, which is why we are fighting for tighter controls in this area."

Aside from stricter regulations over supermarket activity, other recommendations in the report include tying payments to farmers to farm holding size so that funds are spread more proportionately.