FARMERS who want to ensure they get the subsidies to which they are entitled under the new SFP system are being urged not to ignore forms from the Rural Payments Agency.

Speaking at the Yorkshire Farmers' Conference in York, keynote speaker Jeremy Moody advised farmers to start completing the new forms now, leaving plenty of time for clarification before the May 16 deadline.

The new system replaces former production-related subsidies and is linked with good agricultural and environmental management of farmland - "cross-compliance".

Claims will in future be made on the basis of the area farmed, rather than production, and forms are being sent to farmers now seeking details of their farms.

Mr Moody, who is secretary and policy adviser to the Central Association of Agricultural Valuers, told the audience of farmers from across the region that the guidance notes for the vital SP5 application form were still being amended.

"Defra are still stumbling over their own feet but the clock is ticking," he said. "These forms set the income from subsidy for your farms for the next few years - no-one is sure quite how many. If you do not get it right by May 16, you do not get it right at all."

The conference, at York Racecourse, was organised jointly by Carter Jonas and AMC.

Adrian Cawood, AMC regional agricultural manager, opened the event saying that 2005 would prove a difficult year for farmers as they got to grips with the new scheme. There had been a huge amount of information on it, some of which had subsequently been changed, but it was happening and farmers would have to live with it.

Mr Moody gave the audience a step-by-step guide to filling in the forms but warned that they should consider each element carefully, making several drafts before committing themselves to a final version.

"Work out what is really important and have a sense of perspective and see where the real value lies," he advised.

Farmers must remember that the SFP was only one income stream and it was important to consider how they could earn income in the marketplace.

Some farmers had stuck with their original plans but for others, including farmers west of the Pennines badly affected by last autumn's wet weather, the decoupling of subsidy from production had allowed them to make different choices.

"Look at your farm and think 'how do I farm it to make a profit?'," he said. "If you use the subsidies to support other parts of your business, your customers will not be grateful and, as payments are phased out, you will have less money to make it work."

The conference also heard details of the new Environmental Stewardship Scheme which could also contribute to farm incomes.

Andrew Fallows, of Carter Jonas, explained that the new scheme would replace existing environmental schemes, such as Countryside Stewardship and the Organic Farming Scheme, with three levels of entry.

The Entry Level Stewardship was open to all and a Farm Environment Record would be have to be prepared. A points target would be set for each application and farmers achieving the target would receive a flat rate payment per hectare. There would also be an Organic Entry Level and Higher Level Stewardship.

Specific guidance on contract farming, set-aside and non-food crops was given by the panel in a question and answer session.