It is understood that the European Commission is considering extending the deadline that will allow Member States and regions more time to pay out the 2015 direct payments. if agreed the 30 june deadline will be moved to 15 obtober.

The European Commissioner for Agriculture, Phil Hogan, said he is aware of the difficulties some member states are facing.

"For this reason I am looking carefully at how best the Commission can help those Member States and by extension their farmers, without application of any penalty," Hogan said, speaking at the European Parliament mini session on Wednesday.

With less than a month to go on the UK's referendum on membership of the EU the news will be welcomed by paying agencies there where farmers have sufferered as a result of delays. Problems with the IT systems designed to administer payments have been cited as a cause to the delay.

Read more

For full coverage of Britain's EU referendum click here.