FARMERS in the West Midlands region are set to receive at least 50 per cent of their SPS payments by the end of February, according to an announcement by Defra Secretary of State, David Miliband.

But the NFU, together with the Country Land and Business Association and the Tenant Farmers' Association, fears this is a little too late for many farmers and will still leave much of the industry in financial difficulties.

NFU regional director David Collier is particularly worried about the impact this will have on hill farmers, one in 20 of whom are still waiting for money from last year.

He said: "I'm concerned to hear that one in 20 hill farmers are still waiting for a payment of their 2005 money. This money should have been with them months ago.

"Farming in the uplands is difficult and often only marginally profitable. It's a fragile environment that will suffer without farming prosperity to pay for the sensitive management needed.

"I am also concerned about those in other categories, such as farmers with land in Wales as well as England, who have suffered serious cashflow problems because of the delays."

The NFU, CLA and TFA are continuing to urge the RPA to improve its performance, but additional accounting complications this year mean fines for making incorrect payments without all due checks and processes will result in Defra being fined rather than central government.

In a joint statement, they said: "This is an unfair double hit on the rural community. First, the single payment is paid late, affecting not only farmers but dependent businesses and the wider rural community. Then Defra's budget is cut to the tune of £200m, which impacts on vital issues like flood defence, land drainage, animal health and the environment.

"Since David Miliband has been at Defra we have welcomed his assurances that he will do everything to ensure fair terms of competition for our farmers. We recognise he is a victim of the system he inherited.

"However we need to be assured the lessons of the past have been learned.

"We are all acutely aware these problems could cause ongoing delays in payments into 2008 and we have asked Defra to share a detailed action plan with us to ensure this is the last year we suffer from this kind of blatant disadvantage."