FARMERS' leaders are showing the first signs of optimism that the foot-and-mouth crisis might be nearing an end after six months of misery.

But the improving outlook comes alongside an admission that the outbreak will have a major impact on the long-term future of agriculture, as well as a devastating effect on tourism and other rural businesses.

One new case was confirmed in Lythe, near Whitby, North Yorkshire, at the weekend, which broke an eight-day run of no reported outbreaks in the North-East and North Yorkshire.

But there are hopes that the strict biosecurity measures introduced to try to halt the spread of foot-and-mouth around Thirsk, in North Yorkshire, may be working.

National Farmers' Union North-East spokesman Rob Simpson said: "There is a degree of optimism, although we don't know if we're out of the woods yet.

"Cumbria is a major concern in that it is still on the border, and there is a chance it could come over again. But it could well be that the biosecurity measures are working."

He said the likely long-term impact of the disease would include an acceleration in a series of changes in the industry which had been put forward before foot-and-mouth broke out, including forcing farmers to diversify into non-agricultural businesses, adopt more environmentally-friendly methods, reduce the density of livestock and look for new markets for their products.

It was anticipated that farmers and farm workers would leave the industry, on top of the 50,000 who have left during the past two years.

On top of the effect on farming, the wide-scale closure of the countryside had left many tourism businesses deprived of income and forced to rely on reserves or bank loans.

The latest survey for the Northumbria Tourist Board shows that more than half the businesses which responded had a lower turnover than last year, with 47 per cent reporting fewer UK visitors and 43 per cent fewer overseas visitors.

Accommodation bookings were down by almost a quarter on last year, and staff levels were down by 14 per cent, with full-time and part-time seasonal employees affected.

Research carried out for development agency One NorthEast revealed that 28 per cent of businesses surveyed had seen their turnover drop by ten per cent or more, with those in the hospitality trade down by 64 per cent.

Earlier this month, researchers suggested that up to 5,000 jobs in the tourism sector in North and East Yorkshire were at risk as a result of the epidemic, with 500 to 600 business expected to fail before the spring.

The Yorkshire Tourist Board expects the number of foreign visitors to be reduced for the next two to three years

Read more about the foot-and-mouth crisis here.