THE NFU governing body fears the Government may snatch defeat from the jaws of victory by making the wrong decision on how to implement the CAP in England.

The union has been a major proponent of decoupling farm payments from production and has worked with the Government to create much-needed market-focused CAP reform.

This week the NFU council voted 60-4 in favour of an historic single farm payment system, saying it was the only option to provide the framework needed for radical reform.

Speaking after the council met, NFU president Sir Ben Gill said: "We are now desperately concerned that the Government may choose to change the basis of payments to a complex formula instead of paying farmers based on their historic receipts.

"The NFU has always accepted the need for environmental conditions on payments, so this is an argument about economic sustainability. There is a real danger that our competitive position in Europe would be threatened if this option were chosen."

The NFU believes regional payments, or a hybrid version, would create more bureaucracy, not less, and would threaten the future of more farmers.

Sir Ben said: "We have been calling for changes to the CAP for years. Europe has provided us with a key that could unlock UK agriculture and allow it to be more innovative and responsive to what today's consumer wants.

"Defra must now have the strength to chose the right option rather than tinkering around the edges. Adoption of a hybrid system risks placing English farmers at a major competitive disadvantage compared to those countries that chose the single historic method.

"It would not only be ironic, but infuriating, if at the last hurdle the benefits of decoupling were to favour French and Irish farmers simply because of a decision taken by our Government.

"The Government seems more preoccupied with chasing possible ghosts of the future rather than the practical realities of farming in the next few years."

Sir Ben was due to give evidence to the EFRA Committee on CAP reform on Wednesday afternoon.