THE threatened Hill Farming Allowance (HFA) is to continue until 2010.

Tim Farron, MP for Westmorland and Lonsdale and chairman of the House of Commons All Party Parliamentary Group on Hill Farming, welcomed the news.

He said: "This gives the Government time to consult properly and work on a scheme that will help farmers to not just survive but thrive."

The HFA will be replaced by a new Upland Entry Level Scheme (ELS), but Mr Farron said the Government must listen to farmers' views and consult widely within the industry.

He also wants assurances that, at the very least, the current HFA budget of £27m a year will not be cut and that the new scheme will be accessible to the largest possible number of hill farmers.

Peter Kendall, National Farmers' Union president, also welcomed the announcement, but said the Upland ELS scheme support must be paid directly to farmers rather than landlords. It must also cater for short-term lets and common land.