Funding has been approved by the Department of Finance, which will allow DAERA to issue payments to NI farmers in September.
With a budget for 2026/2027 still not agreed by the NI Executive, there had been concerns that Farm Sustainability Payments could be delayed this year.
Existing legislation gives ministers some cover to manage departmental spending in the absence of an overall budget, although various limits and additional checks apply.
However, it has been confirmed to the Irish Farmers Journal that the Department of Finance has authorised DAERA expenditure, which includes Farm Sustainability Payments.
A spokesperson for DAERA also confirmed that the plan is to issue payments to NI farmers next month.
Last year, Farm Sustainability Payments to almost all eligible applicants were issued on 1 September, with £250m paid out on the first day.
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