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National Farmers' Union president Peter Kendall said rising exports of food and drink put the UK on track for a record year for exporting farming produce, while the agricultural workforce rose by 9,500 people this year.

In his annual New Year message, Mr Kendall urged the Government to support farming by ensuring reform of the EU farming subsidies system encouraged efficient farming and freed the industry to grow, look after the environment and produce more food.

There are concerns that efforts to “green” the Common Agricultural Policy will not deliver the hoped-for benefits for the environment, and just create more red tape and regulation for farmers.

In an upbeat New Year message in which he said he was “incredibly optimistic” for the long-term future of farming, Mr Kendall pointed to exports of £5.85 billion in the first six months of 2011 – a 13% increase on the previous year, helped by a favourable exchange rate.

Mr Kendall said 2011 would be the seventh year in a row in which food and drink exports had risen, with the UK on course to achieve record levels of exports for the year.

Mr Kendall also urged retailers to stop the “opportunistic practices” – such as supermarkets using their clout to push down prices paid to producers – which drive profits from the supply chain.

“Instead, develop more long-term relationships built on fair play and trust; ones that allow us to invest in our farming businesses and continue to produce food sustainably in the future,” he said.

Mr Kendall added that consumers should continue to trust farmers to deliver top quality, affordable food, green energy and a countryside “that’s the envy of the world”.

He said: “If George Osborne and Vince Cable are looking for industrial sectors to kick-start growth and rebalance the economy then they should start by looking at farming. And it’s not just exports. The value of farm output has increased by almost 30% in the past five years. We’ve been creating more jobs, too.”

And he added: “There is huge potential to build on these achievement. Farmers and growers are more than ready to rise to the challenge of producing more food, more sustainably. But for that potential to be realised we need the right political, regulatory and market frameworks.”

Agriculture Minister Jim Paice said: “There are big opportunities for the farming industry with a growing world population and the chance to export high quality British products to emerging markets.

“We are working in Europe to reform the Common Agricultural Policy so it encourages improved competitiveness and better environmental performance, with less reliance on subsidies. We are also making our own regulations simple and effective so it’s easier for farmers to do their job.”

“I believe 2012 will be a challenging year. The uncertainties surrounding the Eurozone crisis, and the impact on the exchange rate, make predictions almost impossible. However, I want to see a government that thinks farming in the same way that it thinks banking. We need to see some visible results from the Macdonald review of farming red tape that will keep us on course to deliver on our potential. And we will look to government to stick to its resolve as the difficult process of clearing TB from the countryside gets under way.

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