Defra accused of hoarding agri-environment cash

The NFU has accused the government of needlessly holding on to agri-environment payments when it could be using the money to ease cashflow problems on farms.

Defra should “put its money where its mouth is” and seize the opportunity granted by Brussels, which has relaxed rules so member states can make 85% of entry-level and higher-level stewardship payments to farmers sooner rather than later, said NFU vice-president Guy Smith.

Paying farmers now rather than waiting would inject a much-needed £1.14bn into the industry at a time when many producers were facing a cashflow crisis, said Mr Smith. “We can see no reason why the government cannot press the button now.”

See also: Relax subsidy checks to speed up payments, says Truss

In total, farmers in England are owed £200m for environmental measures they have already undertaken.

Natural England has told the NFU that payments will start to be made to farmers next month but most transactions will take place in November and December.

The delay is partly due to IT failures earlier this year at the Rural Payments Agency and the extension of basic payment application deadlines. European rules require basic payment and agri-environment data to be cross-checked before payments can be made but it is this requirement that Brussels has eased.

Mr Smith said a delay of up to four months for agri-environment scheme payments to farmers would put added pressure on growers and livestock businesses who were already faced with the prospect of going into a winter of tight commodity prices without enough cash.

He added: “This is exactly the sort of concession Defra secretary Liz Truss said she wanted from the European Commission.

“She has the ability to do something and we can’t think of any reason for her not to announce it today. It ticks every box.”

Government officials are due to meet at European level today (24 September). A Defra spokeswoman said: “We’re aware of the challenges facing farmers and will be taking part in discussions on this issue in Brussels.”