The Department of Agriculture and Food has moved to woo farmers away from the system of the cheque in the post.
Irish farmers last year received over one million cheques from the Department as payments for various premiums paid by the EU and the State.
A total of €1.6 billion was paid out last year to the farmers in headage payments, ewe premiums, slaughter payments and arable aid schemes.
Now, the Department of Agriculture and Food is to offer the farmers the facility of entering a direct credit authorisation system.
A special form authorising the system to be put in place has been posted out to 160,000 account holders with their Farmer Payment Statements this week.
They will be asked to go on the direct credit system, where the monies due would be directly forwarded to the farmers' nominated bank account.
The Minister for Agriculture and Food, Mr Walsh, said payment by direct credit offered a secure, cost-effective and time- saving alternative to cheque payments.
He said that at the same time a remittance advice will issue by post to the farmer with confirmation of the payment and details of the transaction.
The Minister also announced that from now on, statements will be given on the calendar year rather than on the EU payments year, which ends on June 30th.