A FARMER and councillor who lost his stock to foot-and-mouth disease in March had a further setback this week when he feared he could lose up to £35,000 due to a "misunderstanding".

Following a visit by a government field officer to his farm at Mayland Hall, Hamsterley, Teesdale district councillor Derek Peart was given to understand that he needed to sign an FM7 notice, which effectively declared his premises clean. But what he learned only at the last minute was that if he signed the form, he would end his contract with the Department for Environment, Food and Rural Affairs and would receive no further payments for "putting the farm back together".

Coun Peart added: "We had earlier been advised against doing anything other than cleaning, as the work might be rejected. So there are still materials to be bought and labour to pay for."

A Defra spokesman agreed there might have been a misunderstanding between Coun Peart and the field officer.

"He should not have been asked to sign the form, but I am fairly sure it has been sorted out now," he said.

Asked whether Coun Peart would have had any comeback had he signed the form, the spokesman added: "I honestly don't know whether there is a right of appeal, because I don't know of an earlier challenge."

Coun Peart, who had deferred further inspections at his premises, was relieved that the matter seemed to be getting sorted out.

"I wanted this highlighting as a warning to other farmers not to sign this form until they are sure all work has been completed and monies due paid," he said.