FARMERS in North Yorkshire have left Ryedale MP John Greenway in no doubt about the local effects of the cash crisis facing the agricultural industry.

A representative group of eight local farmers and the National Farmers' Union's (NFU) Ryedale group secretary, Geoff Todd, called on the Tory MP to help step up the political pressure on the Government by voicing their concerns directly to Secretary of State for Environment, Food and Rural Affairs, Margaret Beckett.

Mr Todd said: "We were able to give Mr Greenway a first-hand account of how local farming businesses are being affected by the Government's total inability to implement the new Single Payment Scheme.

"This scheme, which completely overhauls the way farmers receive the European funds they are entitled to, has been introduced without a hitch in other member states, and indeed in Scotland and Wales, but has been plagued by a litany of blunders and delays in England.

"The result is that farmers are being left completely high and dry, with very little in the way of income.

"Overdrafts, already at breaking point, are having to be extended even further as crops still need sowing and livestock still need feeding, whether or not the business has any income.

"Mr Greenway was very sympathetic to the very real problems now being faced by many of his constituents and undertook to write in detail to the secretary of state on their behalf."

The Government has now asked the European Commission to extend the deadline for making payments from June 30 to October 15 - something that is giving farmers even greater cause for concern.

Mr Todd said: "It's vital we keep up the pressure on the Government now.

"We must ensure that any extension granted by the EU is not seen by the Government as an excuse to take its 'foot off the gas'."

With that in mind, the NFU is pressing hard for interest to be made on late payments.

The advice of specialist lawyers is now being sought as the NFU believes there is a strong case for interest to be paid where legitimately claimed payments are still outstanding after June 30.

Updated: 10:07 Thursday, May 04, 2006