Farmers owed thousands in subsidies

Some subsidy schemes encourage conservation work

Hundreds of farmers are facing a cash crisis because subsidies promised by the government have failed to appear, it is claimed.

Some farmers say they are waiting for up to £10,000 in payments.

The National Farmers' Union (NFU) is now preparing legal action on behalf to secure the money.

The Department for Environment, Food and Rural Affairs (Defra) said it has to make sure all claims are justified.

Nobody can do without that sum of money coming into the business

Tim Budden

The Budden family lives at Higher Hacknell, a 350-acre organic farm in north Devon.

They were keen to embrace the government's green flagship programme, Countryside Stewardship, which encourages conservation work.

But the Buddens, like hundreds of other farmers, say they are still owed about £10,000 in unpaid subsidies.

Annual payments are supposed to be made a year in arrears.

Tim Budden said he has been told the payments will be delayed.

He said: "It's impossible, isn't it? I mean, if you've got a sum of money that you expect, albeit 12 months in arrears, then it becomes 18 months, 20 months, how can you progress?

Political will

"Nobody can do without that sum of money coming into the business."

Hundreds of European livestock payments have also been delayed.

Some see this as a lack of political will to support UK farming.

Administration problems

Anthony Gibson of the NFU said: "Defra's administration is of the standard the average banana republic would be ashamed.

"Driven to despair, we're taking Defra to court to judicial review over penalties that have been applied to farmers' livestock claims."

Annually, farming receives subsidy payments totalling £3bn.

Farmers believe problems administering the system are increasing.

In a statement, Defra did not comment on the apparent backlog of subsidy payments.

But a spokesman did say that the Rural Payments Agency, which is a part of the ministry, has to make sure all claims are accurate and justified before payment is made.