Thousands of organic farming businesses in the Organic Higher Level Stewardship (OHLS) will now be able to roll over their agreements.
Defra has agreed to continue environmental scheme payments preventing further organic farms going out of business.
The challenges arose following Brexit when Defra decided only farmers with no land in organic production with HLS agreements ending before 2024 would be offered annual extensions to bridge the gap.
Adrian Steele of the Soil Association and co-chair of the English Organic Forum welcomed the move, but said it was 'too late for many'.
He said Defra’s original decision not to allow OHLS agreements to be rolled over hit around 123 organic farms in 2020, and 50 went out of certification as a result.
"This is a sad loss for a growing UK organic market and at odds with government pledges to support environmental farming," he added.
"Many organic farmers have spent decades providing environmental benefits, as part of the HLS scheme.”
The news follows months of pressure from Soil Association legal teams and the English Organic Forum.