Farmers who have a Sustainable Farming Incentive (SFI) 2023 agreement before the end of the year will receive an accelerated payment, Defra has confirmed.
The payment, worth 25% of the value of an agreement, will be made in the first month, Defra confirmed on Back British Farming Day (13 September).
The department explained that the move was in recognition of the challenges faced with inflation and rising input costs.
The post-Brexit scheme – which has 23 actions on offer for farmers - is currently accepting expressions of interest and will start accepting applications from 18 September.
However, there has been roll out delays and criticism of the government's handling of it from the farming industry.
Defra Farming Minister Mark Spencer said: "Our flexible new farming schemes and continued investment in technology and automation are already delivering positive outcomes for domestic food production and the environment.
"I will continue to work closely with the sector to take on board feedback to ensure our schemes work in the best possible way so farmers can run profitable and sustainable businesses into the future."
The Country Land and Business Association (CLA) welcomed the announcement, as it would provide "further reassurance" to farmers concerned about cashflow.
CLA president Mark Tufnell said: “The CLA continues to engage robustly but constructively with Defra in pursuit of environmental schemes that work for farm businesses, food security and the environment.”
Defra has also confirmed today that it would identify opportunities to remove 'unnecessary burdens' for small abattoirs to make it easier for them to operate.
This will be supported by a £4 million Small Abattoir Fund – opening by the end of 2023 – to improve productivity and enhance animal health and welfare.