The European Commission has agreed to bring forward by six weeks the release up to €639 million in direct payments to Irish farmers due to the economic situation.
The payments to more than 100,000 farmers can now be made from October 16th instead of the December 1st as originally scheduled. The move follows a request from the Government in the light of "cashflow difficulties" encountered by many farmers.
Ireland is one of 10 member states to receive the go-ahead for the early payment of up to 50 per of direct payments after that date. Last year Irish farmers received a total of €1.278 billion from the direct payment scheme.
In agreeing to the early release of the money, the Commission said farmers were under pressure due to the financial crisis and a subsequent decrease in income. It also cited stricter conditions to get credits in the agriculture sector, price fluctuations for certain agricultural products and adverse weather.
"In order to help alleviate the difficulties caused by these circumstances it is appropriate to authorise these countries to pay advances to farmers of up to 50 per cent of the direct payments earlier than normally," the Commission said.
"The necessary verification of eligibility conditions must nevertheless be carried out before payment of the advances."
The other countries in question are: Belgium, France, Greece, Hungary, Italy, Latvia, Lithuania, Romania and Spain.