Agriculture has been given an unexpected boost by the falling pound, according to a new study.

The sector has proved extremely resilient since last year's Brexit vote and many farmers are showing a real entrepreneurial spirit.

This has been reported by the Clydesdale and Yorkshire Banks, which are both part of plc CYBG, after its staff analysed Department for Environment, Food and Rural Affairs (Defra) figures.

These statistics showed the total income from farming contracted by 7.5 per cent to £3,963m in 2016, compared to a decline of 27 per cent the previous year. The 15 per cent drop in the value of Sterling since last June should provide further support to the sector this year.

The level of subsidy to agriculture in Sterling is likely to be worth 10 per cent to 15 per cent more in the current year, and the price of almost all agricultural products 10 per cent to 15 per cent higher than this time last year.

If the pound strengthens during the Brexit negotiations, this would give another boost as exports could become more attractive.

The banks warned though that farms still need to be run efficiently and that need to remain as informed as possible in relation to what the future will involve following the end of EU subsidies.

It has also suggested that farmers need to create new income streams such as research and development, renewables and technology, which often require significant investment.

The banks' own lending figures to the agricultural sector show this is 15 per cent up on 2016.

Brian Colquhoun, head of commercial banking and agriculture, Clydesdale and Yorkshire Banks, said: “Agricultural businesses throughout the UK have faced recent uncertainties and challenges head on, and are demonstrating incredible resilience. Agriculture is the foundation of many regional economies, and through our £6bn lending commitment to boost the growth of SMEs throughout the UK we will play our part in supporting the ambitions of the rural economy.”

He added: “Farmers have demonstrated genuine entrepreneurial spirit by investing to generate new income streams. We are fortunate to have the opportunity to work with many forward-thinking customers and it is incredibly important they know they have the support behind them when exploring these options.”