New guidance for Stormont departments on managing finances without an agreed budget has given some clarity for the 2026 Farm Sustainability Payment (FSP).

Agriculture Minister Andrew Muir previously warned that the lack of an agreed budget from the NI Executive could lead to delays in issuing payments to farmers this year.

However, the Department of Finance has recently issued guidance which gives ministers some cover to manage departmental spending until a final budget is approved.

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“[It] should allow DAERA to proceed with processing and issuing FSP to the same timeline as previous years, subject to confirmation that sufficient cash will be authorised to fund this envelope in due course,” a DAERA spokesperson told the Irish Farmers Journal.

In previous years, the 15 May deadline for NI farmers submitting single applications has allowed DAERA to issue payments in early September.

In a statement on Wednesday, DAERA said applications submitted after 15 May will be subject to late claim penalties, although changes to submitted claims can be made up until 9 June.

DAERA also confirmed that a final “mop-up” for the Soil Nutrient Health Scheme will open later this summer for anyone who did not join up during the first four years.

Participation in the soil scheme is set to become a condition for claiming FSP from next year onwards, with a 10% penalty applying in 2027, rising to 15% in subsequent years.

Grant scheme

Whilst new budgetary guidance has given some clarity on the FSP timeline, it does not appear sufficient for allowing a new capital grant scheme to be rolled out to NI farmers.

DAERA are currently developing a Sustainable Farming Investment Scheme which has a proposed budget of £40m and is a follow-on from the previous Tier 1 capital grant scheme.

However, the lack of a budget from the NI Executive has delayed the new grant scheme and a DAERA spokesperson said on Wednesday that “further work” is still required.