The death of a popular young father in a stabbing incident has stunned farming communities around the North-East.

Police launched a murder inquiry after finding the body of 34-year-old John Lovegreen at isolated Baal Hill Farm, Thistlewood Lane, Wolsingham, County Durham, where a neighbour reported hearing a disturbance shortly before 5.30pm on Saturday.

Mr Lovegreen had been living alone in a farm cottage since separating from his wife Jane a few months ago. She stayed on at the family home Greenfields Farm, High Etherley, near Bishop Auckland, with the couple's ten-year-old daughter.

A 30-year-old woman was arrested on Saturday night in the Carlisle area and was questioned yesterday at Bishop Auckland police station.

Friends believe the little girl may have been in the cottage at the time of her father's death.

One said: "That would be the worst tragedy of all. He adored that little girl."

Mr Lovegreen, whose parents farm near West Auckland, was already well known in the Wolsingham area before he arrived at the cottage.

Until Greenfields Farm was hit by last year's foot-and-mouth epidemic, he and his wife were regularly seen at Tow Law mart and they were often out cutting grass verges under a council contract.

Friends said they were a hard-working couple who had apparently been devoted to each other.

One said: "I couldn't believe it when they separated. They had foot-and-mouth last year but he seemed to be getting back on his feet.

"He had got some stock back and was doing well on the plant side. He had the contract for cutting school fields and grass verges and she used to drive the tractor as well.

"He was devoted to his daughter. If you ever saw them together it was obvious how much he loved her."

Another friend said: "He was a really nice bloke who kept himself to himself. Even though he and Jane had separated, it seemed to be fairly amicable and they still ran the business together. We all hoped they would get back together."

A neighbour in High Etherley said: "They were only at the farm a few years but they worked day and night to build it up.

"They seemed to be doing really well when they got foot-and-mouth. It hit them hard."

"This is a terrible family tragedy. I feel especially sorry for the little girl. She will have to live with it for the rest of her life."

Police said the coroner had been informed about Mr Lovegreen's death and Home Office patholgist Dr James Sunter had carried out a post mortem yesterday.

Up to 30 police and forensic officers are involved in the investigation, which is being led by Detective Superintendent Harry Stephenson from an incident room at Crook police station.

He said: "A distinctive green Mitsubishi Shogun registration Y5 OJL was seen leaving the farm premises a short while before the man's body was found.

"We would like to speak to anyone who may have seen it travelling between Bishop Auckland and Wolsingham in the late afternoon or between Wolsingham and Carlisle in the early evening."

Contact the incident room on (01388) 762011 or telephone the confidential Crimestoppers line 0800 555 111.