FARMERS have finally settled their dispute with the Government over the huge bill they were left with following the foot-and-mouth clean-up operation.

The Northumberland and Durham Machinery Ring (NDMR), a farmers' co-operative with 300 members, had been involved in a lengthy wrangle with Defra over its costs, which reportedly ran into six figures.

At the height of the crisis, members rented out machinery and labour for tasks including helping to dispose of the thousands of animal carcasses left from culls carried out across the region.

The ring is understood to have sought legal advice and complained that it was facing a cash flow crisis when Defra stopped payments without warning.

The Northern Echo has learnt that both parties have now reached a compromise over the claim, more than two years after the North-East was declared free of foot-and-mouth disease.

Richard Ellison, the National Farmers' Union (NFU) regional director in the North-East, said: "We are pleased that, on this occasion, these difficulties have been sorted out and the matter resolved.

"But we are aware that there are still people with issues outstanding and believe that the people involved in all manner of operations, including cleansing and disinfection, should be reimbursed on the basis of the figures agreed with Defra.

"There have been concerns from Defra about the size of some bills they received, but equally some of those undertaking the jobs feel the goalposts were moved."

David Maughan, chairman of the North Riding and Durham NFU, said: "There has been a complete log jam when it comes to many people being paid for the work carried out."

No-one was available for comment at the machinery ring, which is a non-profit making organisation, based in Crook, County Durham.

A Defra statement said: "NDMR and Defra are pleased to announce that they have resolved their contractual dispute relating to charges for services provided during the foot-and-mouth disease outbreak."