UK farmers may need to prove their worth before being granted a licence under new government proposals.

Whitehall bosses are considering making farmers demonstrate their competence in raising livestock and growing crops, and have minimum levels of insurance before granting the permit.

Government chiefs are said to be 'surprised' at how few operators protect their businesses against loss, amid growing concerns the industry has escape the checks and balances imposed on other sectors.

But since the exchequer felt the devastating effects of the foot and mouth epidemic on the UK economy, civil service bosses have stressed the need to keep an eye on business practices in the industry.

Meanwhile, National Farmers' Union deputy director Ian Gardiner said farmers would be anxious to avoid any further bureaucracy.

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