THE National Farmers' Union has welcomed the Government's announcement that it is to increase its funding to hill and upland farmers by 10pc to help producers working in some of the country's most beautiful but unforgiving landscapes.

DEFRA has announced that the hill farm allowance budget for England in 2003 will increase from a total of £37.4m to £41.1m.

The rates are much higher than the originally-published figures for 2003, which the NFU puts down to its continued pressure on the Government.

NFU deputy president Tim Bennett said: "The rise in payments is very good news. Farming in the uplands is unquestionably important for both the landscape and the rural economy and we are pleased that the Government has recognised this."

He added that the NFU had orchestrated a long-running campaign for more Government support to enable farmers to continue caring for the world-renowned upland landscape, which is amongst the most difficult and least productive land to farm.

NFU less-favoured areas chairman William Jenkins said: "Hill farmers will welcome this increase in payment rates. It means that the support they will get in 2003 will be much higher than anyone expected."

However, the NFU remains concerned that the safety net payment, intended to compensate for loss of income following changes to the way hill farmers are supported, will fall from 80pc to 50pc, before disappearing for good in 2004.

Updated: 09:33 Thursday, August 29, 2002