The year began with farmers celebrating an end to the foot-and-mouth disease crisis which had claimed more than 50,000 animals.

It soon emerged, however, that the battle against the virus had diverted attention from other animal health problems, with reports of sharp increases in brucellosis and tuberculosis cases.

Farmers criticised the Department of Agriculture for not moving faster to remove infected cattle.

The minister, Brid Rodgers, responded with an action plan to control the spread but, unlike foot-and-mouth which had been contained within months, it was warned that this would be a lengthy and more costly battle.

By the end of the year, more than 5,000 farms were under bovine TB restrictions while a further 300 herds were restricted because of abortions caused by brucellosis.

Ian Pearson: Took over agriculture responsibilities

The annual Balmoral agricultural show brought out the crowds in May with a visit by the Queen making it a Royal occasion.

Wet weather put a dampener on the show season with some events being cancelled. As the summer wore on the rain continued to fall, leaving many farmers short of winter feed.

And there was more than rain dampening their optimism.

Income figures for the previous year pointed to a long-awaited recovery but a slump in milk prices in the first six months combined with low pig prices, snuffed out any hope of better times.

The Ulster Farmers' Union (UFU) said a typical family farm was having to survive on less than �7,000 per year.

Ulster Farmers' Union said a typical family farm was having to survive on less than �7,000 per year.

Income estimates suggest another significant fall during 2002 and the UFU launched a campaign to halt the rural exodus.

There was evidence that the steady flow of farmers leaving the industry was continuing with more than 2,000 full and part-time farmers giving up.

The chronic state of farm finances was one of the issues which prompted the Department of Agriculture's Vision Action Plan.

New programme

It was left to Brid Rodgers' replacement, Ian Pearson, to announce �30m funding for a strategy aimed at improving competitiveness through better training for farmers, greater focus on research and development and improved information technology skills.

There was a major shake-up too at the Department of Agriculture with a modernisation programme aimed at making it more effective and "farmer-friendly".

A review of the department's science service resulted in a plan for up to 600 civil servants to be hived off to work for a new farming and food industry research body.

The decision though to retain veterinary science laboratory services within the department resulted from the foot-and-mouth experience, where the need for a fast response unit was seen as crucial.

The overall cost of the outbreak to government departments was put at �24m with staff costs amounting to �11.5m. It also cost taxpayers and the tourism industry millions.

Compensation

Farmers received �7.5m compensation for animals culled and the report estimates the farming industry made a net gain of more than �6m as a consequence of foot-and-mouth disease through a currency compensation package which more than offset the impact of the outbreak.

If the foot-and-mouth cull turned the spotlight on fraudulent sheep subsidy claims by some farmers, a case highlighting millions of pounds of false claims against the Ministry of Defence kept the focus on south Armagh.

After one of the longest jury trials in Northern Ireland, a vet was jailed for conspiracy to defraud.

The jury had heard that veterinary certificates were the key to unlocking the Ministry of Defence "money box" in false compensation claims involving animals which, it was said, had died or were injured as a result of low flying army helicopters.

The year ended with farmers contemplating an enlarged Europe through a massive expansion to the east which will see up to ten new member states joining the European Union over the next two years.