The Rural Payments Agency (RPA) this week confirmed that it is to look again at the applications of farmers who applied for National Reserve award in 2005 but were turned down.

The National Reserve was used as a means of "topping up" payments under the SPS for farmers who were said to be in "unique situations" when the payments were introduced, such as new entrants to farming.

People applying for the National Reserve under the Investor category in 2005 had the option of asking the RPA to use an alternative method to calculate their awards but a number of applicants were told by the RPA that their applications had been rejected because they had not experienced a force majeure or exceptional circumstance event, or because they had already qualified for an award under the standard method of calculation.

However those factors were not specified as requirements for an award under the alternative method in the 2005 SPS Handbook and Guidance, causing a great deal of confusion for many farmers and leading to much criticism of the system.

The National Farmers' Union has been campaigning for a review of the situation and this week won the battle.

Union legal adviser Nina Winter, who led the negotiations with the RPA on the issue, said: "Following lengthy negotiations with the NFU, the RPA has now confirmed that it will review National Reserve applications made in 2005 where the applicant asked to be considered under the 'alternative method' under the Investor category.

"We are pleased that, following our representations, the RPA will now review the applications under the criteria set out in the 2005 SPS Handbook and Guidance.

"We are glad that, with support from the NFU's Legal Assistance Scheme, we were able to resolve this matter with the RPA through negotiations and without having to go to court."

The year of 2005 was a fiasco for the RPA in which nearly 20,000 farmers had their SPS payments calculated incorrectly, with farmers receiving some £37m in overpayments.

Some farmers received as much as £500,000 more than they were entitled to while others had their claims rejected.

Last month the RPA admitted that it still had a lot of work to do in order to resolve the situation but said that it was moving from "crisis towards stability" following a multi-million pound improvement programme.

Independent assessments have shown customer satisfaction to be marginally improving and the agency succeeded in meeting eight targets set by the Secretary of State at its last review.

n Customers who applied in 2005 as an alternative investor and would like RPA to review their case, which will be done on the basis of the evidence they submitted in 2005, should write to the RPA by September 19.

The letter must be headed "alternative investor review" and include the relevant SBI and business name.

It should be sent to: Rural Payments Agency, PO Box 1058 Newcastle upon Tyne, NE99 4YQ.