David Miliband, the Environment Secretary, has secured agreement from the Treasury to double the spending on green farming schemes to improve the landscape and increase the number of rare wild birds.

English farmers will be able to apply for a share of £3.9 billion until 2013. The funding will help farmers to switch to organic production and will be used to conserve habitats such as hay meadows.

The money has been raised in part by a clawback from farmers of handouts from the Common Agricultural Policy. This means that arable farmers in England will have to pay out 12 per cent of their CAP handouts this year to fund the green schemes, rising to 14 per cent from 2009 until 2013.

There is anger, however, about the discrepancies within the UK. Farmers in Northern Ireland will pay only 10 per cent, and it is unclear yet whether Scotland and Wales will impose clawbacks.

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