The National Farmers’ Union (NFU) is dismayed by the potential disruption to its members’ business cashflow after changes in the way Environment Stewardship payments are made were announced by government this week.

DEFRA has confirmed that following an official European Commission audit it is required to regularise the timing of Environmental Stewardship payments to certain points during the year, instead of the current rolling basis. It means payments due to farmers after 30 June 2011 will move to an annual cycle, although this change will not affect those agreements started before 1 February 2007.

The NFU has previously expressed surprise at the change, given the fact that these schemes have been in operation for several years and were approved by the European Commission.

NFU head of policy services Andrew Clark said: “This news provides some long-overdue clarity for our members regarding the changes that DEFRA are required to make. We are pleased that the existing twice-yearly payment format will be retained. And we are reassured that the size of payments and the total amount payable to farmers during the life of their agreements remains unaffected.

“However, many farmers and growers rely on regular agri-environment payments when planning the cashflow for their farm businesses and we are concerned that anticipated payments will be less predicable and in some cases delayed. It is regrettable that as a result of the Commission’s decision Environmental Stewardship payments agreements will be disrupted. It’s important that those already in an agreement or about to enter plan ahead and consider how their agreement start date is likely to impact on the amount of time they will have to wait to get paid.”

Commenting on DEFRA’s confirmation of funding levels for Higher Level Stewardship (HLS), applications for which were frozen following the Comprehensive Spending Review announcement, Clark added: “Following several weeks of uncertainty we urge Natural England to provide clarity to those who have been affected by the freeze so they can move forward with their agreements.”

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