Ulster Unionist Assembly member and Agricultural spokesperson, Tom Elliott MLA has welcomed the decision of Agricultural Minister Michelle Gildernew MP to remove the £50 lower limit on the payment of interest on the Less Favoured Areas Compensatory Allowance which have been outstanding from 2006.

Tom said: "This is a victory for common sense and should be good news for many small farmers. I first raised this issue in early November 09 as less Favoured Areas account for a large proportion of our agricultural land in Northern Ireland.

The department may think that these amounts of under £50 are not important but in the present economic climate they are entitled to full interest payments. I understand from a reply from the Minister that the £50 threshold was established following a Parliamentary Ombudsman in England to avoid incurring administration costs by paying out relatively small amounts of interest.

This decision will only apply to this particular set of circumstances and she had warned that this will not change DARD's approach to applying the de minimis to CAP subsidy claims but nevertheless it is welcome news for many farmers."