A SCOTTISH farmer and agricultural contractor is playing a key role in the revival of interest of flax as a viable niche crop.

At the same time, an Anglo-Belgian team is working on new market opportunities.

Once grown widely throughout Britain, the crop has had one or two false dawns in recent years largely as a result of the whims of the fashion industry.

But new varieties, new growing and processing techniques and new markets which have been developed in the last few years are aimed at taking the bust out of the boom-and-bust cycle.

This will be aided by the fact that flax is excluded from the Agenda 2000 farm policy change proposals.

The main driving force in the new initiative is the Norfolk-based agricultural seed and flax specialist, Gorham & Bateson (Agriculture), which has pioneered new linseed and flax varieties for British growing conditions and aims to invest a further #2m in new crops over the next three years. It has formed contract arrangements with growers from Moray to Cornwall.

One of its sister companies, Guardian Farms, produces 1000 acres of flax a year while its processing arm, Flax UK, has formed links with the Belgian processing and marketing group, Procotex, to form Lintex Industries.

With an annual turnover of $115m, Procotex handles about 30,000 tonnes of fibre a year, exporting to 50 countries.

Flax UK has spent approaching #750,000 on a flax-processing factory at Gayton in Norfolk. ''We put our money where our mouth is,'' said managing director Robert Bateson. ''It is important we find growers who share our enthusiasm and vision for the crop which offers a real alternative to many farmers.''

One such enthusiast is Tom McWilliam of Thomastown, Drumblade, near Huntly in Aberdeenshire, who has played a key role in helping to develop a new field decorticator for the flax group, the Fibro-Lino FE800, which plays an important role in the new harvesting technique.

''I have been interested in flax for some time and I went to a Goreham & Bateson open day a while ago to see the company's prototype machine,'' said McWilliam. ''I advised them it needed some modification, such as the addition of rasp bars like a combine. It still needs a bit more work but if they can master it, flax will be in as a worthwhile crop for Scotland and the rest of Britain.''

The machine conditions the crop in the field and removes much of the straw from the fibre - an important consideration in reducing transport costs to the East Anglian plant. Total crop yields are around two-and-a-half to three-and-a-half tonnes per hectare but the fibre yield is only about 20% to 30%.

Once perfected, and Bateson reckons this will be in time for the 1999 harvest, the machines will be put on sale with a price tag in the #10,000 region. It is expected they will be taken up by contractors like McWilliam who runs a seven-man contracting business looking after 5000 acres including his own 700 acres rented.

Most of this was old grassland badly in need of renovation when he took it over.

Flax has been grown in 115-acre blocks over the past four years as a break crop before re-seeding. He intends sowing the same amount this year.

The units carry 100 beef breeding cows with 100 acres given over to spring barley for barley beef finishing of the calves.

''Too many flax growers are just into the crop for the sake of the subsidies,'' said McWilliam.

''I think it has a real future as a non-food crop - and perhaps even as a cattle feed - and it is eminently suitable for non-IACS registered land in Scotland and elsewhere. It needs very little care. You need a good seed bed, but nothing fancy, and one spray to kill thistles and weeds. Before cutting and swathing it is sprayed with glyphosate.''

This is one of the keys to the new growing technique, linked to the development of the decorticator. The other is early sowing and harvesting, preferably March and July respectively although this would be a month later in Scotland, following by retting.

On top of this is the development of new markets for flax fibre, including motor car trimming and insulation - it is used widely on luxury cars from Mercedes and BMW as well as Ford fare - and an increasing number of industrial and domestic uses.

And the bottom line is that it can put cash into farmers' bank accounts. Goreham & Bateson claim it can provide a gross income of between #500 and #1000 per hectare (ha). After growing costs estimated at #180 per ha, this leaves gross margins of #320 to #820 per ha.

The company offers a minimum of #500 per ha for growing the crop, with the addition of #60 per ha for producing processable fibre.