We haven't educated people as to what they are all about - Ukip voters need to be educated.
Mr Ford, who has previously co-authored a book on Europe with Labour grandee Glenys Kinnock, also claimed the mass migration of workers from Eastern Europe under EU laws has caused British communities little more than "undue stress".
His comments come in a special report written for left-wing think tank the Centre for Labour and Social Studies entitled "How can the European left deal with the threat posed by xenophobia?"
Speaking to Express.co.uk, Mr Ford was asked if he considered Mr Farage to be xenophobic.
"Yes, I do," he replied.
"He's not the worst, the nasty people are the ones who are trailing behind him."
He added: "Ukip are the BNP without the bother. They don't have a violent streak."
Mr Ford said he did not believe Ukip voters were xenophobic, but left-wing politicians such as himself "haven't been out campaigning".
"We haven't educated people as to what they are all about - Ukip voters need to be educated."
"The message should not be 'British Jobs for British Workers', but rather 'Decent Jobs for Workers in Britain'."
Mr Ford lost his seat in the European Parliament in the 2009 election, but is standing as a candidate in South West England in May's election.
Ukip is on course to win the European elections, with the latest YouGov survey predicting the party would get 31 per cent of the vote on May 22.
Labour are second on 28 per cent, with the Tories on course to finish third with 19 per cent.
The Lib Dems are in danger of losing all 12 MEPs after the poll suggested they will get just nine per cent.
Mr Farage has always strenuously denied he, or his party, is xenophobic.
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