The £5.1 million allocation of direct aid from the EU for the dairy sector, will have little impact on the local farming scene, according to the Ulster Farmers’ Union.

The money equates to an average of £2,000 per farm business but will be based on production levels.

Northern Ireland has received around one fifth of the total allocation for the UK but UFU President, Ian Marshall said many farmers were suffering from greater losses than this on a regular basis.

The President stated: “The vast majority of dairy farmers are suffering financial difficulties. Even though we successfully lobbied for an additional share of the funding because of the difficulties here, the amount coming to Northern Ireland will not aid financial recovery. Nor will it help the wider industry through what will be one of the toughest winters in living memory for farming families.” He added that while it was encouraging the government at Westminster had recognised Northern Ireland’s unique problems because of low milk prices other sectors had been ignored. “The wider farming industry remains disappointed that the difficulties they are experiencing have been largely ignored by both DEFRA and the European Union,” said Mr Marshall.

At a local level he said the farm minister, Michelle O’Neill and her DARD officials needed to pay this additional money out quickly and also ensure that every effort is made to improve on the 93 per cent of the CAP’s basic scheme payments that were made in full last December.

“This has been a hard year for farmers which is going to get worse over the coming months. Against that background they cannot afford to have any delay to their direct CAP payments,” he said.

The Agriculture Minister said Northern Ireland had received the money after the unique and difficult circumstances facing the industry were made to officials.

Minister O’Neill said: “In my meetings with Commissioner Hogan and DEFRA Secretary Liz Truss, I have been strenuously pushing for immediate support for our hard-pressed farmers. I made a strong case for differentiated aid for the north given the drastic price reductions here compared with Britain and as a result I have secured a better deal for our farmers, in that they will share a total aid package worth £5.1million, almost a fifth of the Member State allocation.” The Minister went on to say: “Throughout my engagement with DEFRA and the Commission I insisted that they recognise that our dairy industry is facing a unique and extreme set of circumstances. I welcome the fact that they both have listened and accepted this. The north’s allocation is larger as a result. The price falls in the dairy sector are deeper and longer than we have seen in any other farming sector, with the milk price 34% lower in July this year than in 2014, and 39% below prices in 2013.”