When David Airey’s family moved from Otley to their hilltop sheep farm above Sutton-in-Craven in 1963, he used to pass ten farms on his way to school.

Now, there are four left in the area, including two where the farmers are nearing retirement and are content to be ticking over.

Although farming remains an important element of the wider Bradford economy, more farms have been turned into desirable residences and put to other uses, such as pony paddocks, as the economics of breeding and raising livestock – the main type of farming in this part of the world – have become increasingly challenging.

That, along with a plethora of tighter and bulkier regulations coming from Whitehall and Brussels – and what David calls successive UK governments’ tendency to “goldplate” European legislation to make it even more demanding and costly.

“Whereas the French and German governments apply EU rules in a commonsense way to suit their farming industries, British governments down the years have goldplated it and turned five pages of new rules into an encyclopedia,” said David, who is chairman of the West Riding branch of the National Farmers’ Union.

He is also critical of a ‘one-size-fits-all’ approach to farming legislation. He cites rules covering haymaking – which lay down a date before which no hay can be made.

David said: “What might be right for the South West will not apply to the Lake District, which has a totally different climate. This summer hardly anyone has made silage according to the official timetable due to the weather conditions.

“Now the Government is placing all the emphasis on getting farmers to be greener and protect wildlife and natural features, rather than on encouraging food production.

“The best way to be green is through growing crops and raising livestock for food. It’s what farmers have done for the past 200 years and is more necessary than ever as we are far from self-sufficient in this country.”

One of the latest issues getting farmers hot under the collar is the implementation of The Uplands Entry Level Scheme, which has replaced the Hill Farm Allowance. The changes affect many local farmers as a high proportion of them operate on the moor tops and higher ground.

“Until this year we ticked a box on the special farm payment forms to claim the old hill farm allowance. Now we have to go into detail about how we will protect wild animals and look after features in the landscape – which is something that is in our interests to do anyway.

“It’s become a nightmare and another time-consuming and expensive regulation,” said David, who raises around 800 sheep on his 450-hectare farm. They are then sold on to lowland farmers for fattening up.

But he says the policies of successive UK governments have led to fewer livestock farmers, and rising costs have made it difficult for anyone except the most determined with access to large wads of cash, to become farmers.

The dwindling number of paying working farms in his neighbourhood is indicative of what’s happening around the country.

David regularly attends auctions run by Craven Cattle Marts Ltd, trading as CCM Auctions, at Skipton Auction Mart.

Selling sheep, cattle, poultry and working dogs is big business, and CCM is one of the UK’s leading auction centres.

But even here, the number of animals passing through sale rings has reduced in recent years, partly due to farmers packing up or a favourable exchange rate making it attractive for breeders to sell abroad.

CCM Auctions is this week celebrating the 20th anniversary of moving to its purpose-built four-acre site on Gargrave Road.

As it starts the peak three months of activity, the mart is staging several special sales to mark the occasion, including a show and sale of 6,500 lambs, and an anniversary cattle show.

Depending on the type of sale, the mart attracts farmers and livestock traders from a 100-mile radius. The scale of its operations is illustrated by the fact that CCM annually auctions around 200,000 sheep alone.

In the years since Princess Anne officially opened the new facilities in 1990, CCM Auctions has faced a number of challenges, including foot-and-mouth disease – which forced it to close for 12 months – a more recent outbreak of blue tongue and the ups and downs of agricultural economic.

Its operations have also been affected by growing government and EU regulation.

CCM, run by a co-operative of local farmers, can no longer rely solely on auctions to pay its way, and in recent years has broadened the range of activities at the Gargrave Road site.

Now, it is a base for education, several agriculture-related businesses and even a theatre company, which successfully stages productions in the main auction ring.

The site is now a business park housing an array of operations, including Craven College’s rural studies and equestrian centre and its dry stone walling training centre.

There are a number of farm equipment, accessory and animal feed dealers, and the Kingsway veterinary practice moved on site in 2009. The auction mart’s cafe is run by a family who used to farm in the Dales.

In addition to livestock, CCM also stages sales of machinery, antiques and furniture, horticultural products and a variety of goods in regular reclamation and salvage sales, where the public can offload unwanted items.

Jeremy Easton, general manager and chief auctioneer, who has been with CCM for around 30 years, said: “Like many sectors we’ve had to adopt to changing conditions and modify our operations to ensure we remain viable and successful.”

CCM traces its origins back to 1894 when auction marts started to take over from the old private treaty sales between individual farmers, with deals settled with a handshake. The original mart operated near Skipton town centre, where Morrisons supermarket stands today.

The auction mart acquired its current base from Craven Council, where it had the space and scope to diversify. There are a number of permanent sale rings for sheep, dairy and beef cattle, and more are created on exceptionally busy days.

Whereas sheep used to be sold from pens, they now go through the ring. The latest development is an electronic reader to check the identity tag of every beast as it enters the ring, to ensure the traceability of animals meets tighter EU standards.

Jeremy said: “It’s part of the process that will ensure the traceability of every lamb from the farm to the plate to ensure the quality of the food chain. It’s an expensive business.

“We’ve invested £17,000 on the fixed reader along with £800 each on several hand-held probes, but it’s another requirement sheep farmers are facing.”

Mr Eaton said CCM’s facilities provide more than just a place for farmers to sell their livestock. Auction days provided them with a good opportunity to meet up, compare notes and exchange the latest gossip and information.

He said: “Market days are more than just about buying and selling. They are the backdrop to useful networking for our clients. Farmers can also come here to deal with the other businesses on site, some of which operate when auctions are not on, and the cafe provides an excellent meeting point.

“The Mart Theatre, which uses the main ring, has built up a good reputation for its productions and ensures that the site provides a useful facility for the wider community.

“Craven College’s base here is also vital, ensuring that rural skills continue to be developed. I believe there are still good opportunities for determined young people to make their way in farming.”