MAJOR changes are proposed for the way funding is delivered in rural areas.

Regional development agencies (RDA), such as One NorthEast and Yorkshire Forward, will take over some funding responsibilities, including farm diversification.

They will run the rural enterprise scheme, processing and marketing grants, the vocational training scheme and the energy crops producer group scheme.

Responsibility for environmental stewardship will move from the Rural Development Service to Natural England when it becomes fully operational.

The changes are contained in proposals for the 2007 to 2013 Rural Development Programme for England, whose three-month consultation period ends on May 22.

They are designed to better target the needs of rural people and businesses in line with regional priorities.

But some concerns have been expressed that RDAs are focused on larger job creation schemes than those offered by farm shops and similar developments.