A radical reconstruction of British farming is needed to produce healthy food, health rural economies and a health landscape

Prof Jules Pretty Essex University

And it presses for taxes to be used to encourage sustainable farming, with subsidies focused on land stewardship not production.

The call comes after Environment, Food and Rural Affairs Secretary Margaret Beckett this month said wasteful farm subsidies should end in a major shake-up of farming.

Incentive for farmers

The Fabian Society paper, written by Essex University's Professor Jules Pretty and published on Friday, will be handed to Lord Haskins as he heads up the government's foot-and-mouth recovery programme.

It suggests a new food standard, replacing the complex range of labels currently seen in shops, would encourage farmers to improve their environmental and animal welfare practices.

The National Trust recently proposed a similar "green farming standard".

And the Fabian Society believes the idea could win "considerable support" among farmers, consumer groups and environmental campaigners.

Michael Jacobs, general secretary of the Fabian Society, said: "Many consumers would like to buy foods that are healthier and more sustainably produced, but organic produce is often just too expensive.

"An 'intermediate standard' would be attractive to consumers and would give farmers a clear market incentive to improve their practices."

Organic growth

Organic farming currently makes up 2.3% of Britain's total agricultural land - a fraction higher than the European average but below the 11.2% found in Sweden or the 10% in Austria.

Organic watchdog the Soil Association says consumer demand has risen by 55% in the last year - but accounts for about 2% of all food sales.

Anna Ross, senior lecturer in economics at the University of West of England, found in a survey last year that organic price premiums averaged more than 60% in Britain's four largest supermarkets.

Dr Ross says organic farmers argue an average of 30% on prices can be justified by higher productions costs, although much organic produce faces extra import costs.

Organic as share of all farming land

EU average: 2.2% UK: 2.3% Denmark: 6% Austria: 10% Sweden: 11.2%

Prof Pretty argued against the received wisdom that modern farming produces 'cheap food'.

He suggests consumers pay three times over for the same food: at the checkout, in taxes for farming subsidies and in cleaning up the environmental and health problems caused by modern agriculture.

The professor does not believe the new "greener standard" should carry a price premium.

Instead, taxes should be used to create "positive side effects" from farming.

'Radical reconstruction needed'

Prof Pretty argued the costs of unsustainable farming had been ignored for too long.

"Tinkering around the edges of modern agriculture is no longer sufficient.

"A radical reconstruction of British farming is needed to produce healthy food, healthy rural economies and a healthy landscape."

As well as the "greener standard" tag, Prof Pretty's national plan includes: