THE NFU has won an important clarification from the Government on the entitlement of some farmers in Environmentally Sensitive Areas who also claim set-aside payments.

Confusion was caused when Defra updated the guidance literature on the Arable Area Payments Scheme, under which set-aside is operated.

The 2002 edition of the AAPS guidance booklet suggested farmers could not claim set-aside payments on land entered into ESA agreements, contradicting earlier guidance that land under some ESA agreements, such as "tier 1" and "all land", is eligible.

Following the NFU's intervention, Defra has now confirmed that there will be no change in the existing payment entitlements for any ESA agreement holders and the guidance booklet will be revised at the earliest opportunity.

The NFU estimates that several hundred farmers eligible to claim both sets of payments would have lost set-aside support of up to £230 a hectare had the guidance not been clarified.

NFU vice-president Michael Paske said: "The change of wording in the AAPS guidance was of extreme concern as it appeared that the Government had altered the rules.

"This clarification means we have averted a potentially significant reduction in farming incomes at what is a time of severe hardship in the arable sector."

In addition, Defra has also made it clear that, for farmers who have taken land out of production under an arable reversion option - for example, under "tier 2" of an ESA agreement - the situation also remains unchanged.

They have never received set-aside payments but instead receive a payment under the ESA scheme for arable reversion. If, however, the land is AAPS eligible it may be put down as set-aside on their IACS application and so support the claim for the associated cropped areas