The NFU is backing the relocation of the historic Hailsham livestock market in East Sussex from its current town centre position to a new out-of-town site.
A planning application has been lodged by South East Marts Ltd to develop the market off the A22, and the NFU has written to Wealden district planners in support.
The union said that relocation, with the associated improved facilities, "is essential for the long-term viability of the market."
Hailsham is the only remaining livestock market across the whole of East Sussex and West Sussex, with Ashford in Kent the next nearest, approximately 50 miles away.
East Sussex NFU chair and dairy farmer, Peter Appleton said Hailsham mart "sits at the heart of the food supply chain".
“This historic market is part of a critical infrastructure that supports rural livelihoods and traditional patterns of land management in East Sussex and the surrounding counties," he said.
"Huge investment and redevelopment of the market is necessary to comply with new legislation and that cannot be delivered on the current town centre site.
Mr Appleton added that minimising transport time for livestock was a priority for animal welfare as well as an important economic consideration for small farm businesses.
The proposed new market would 'prioritise' animal welfare, while meeting high standards of hygiene, biosecurity and incorporating environmental efficiency measures such as solar panels and improved waste management.
Mr Appleton said: "Redevelopment will secure Hailsham market’s long-term future, safeguarding jobs and supporting the production of climate-friendly food for local people.”
Livestock markets perform a valuable socio economic function, allowing farmers to come together to trade, with live auctions providing transparency in pricing.
The NFU has told planners that markets contribute at least £3.41 billion and support more than 3,000 jobs nationally.
The new mart and its amenities, such as the market café, would also provide an important social hub for farmers.