THE Government has moved to help farmers recover the last remnants of this year's wash-out harvest as fears grow that huge yields elsewhere in Europe are going to destabilise prices.

Environment Secretary Hillary Benn has given growers another two weeks' grace to bring in the remainder of their crops without being penalised for taking machinery onto waterlogged fields.

But as more rain is set to sweep the country this week there are fears that large areas of plantings may simply have to be abandoned.

Mr Benn has extended to October 25 the window during which farmers can use machines and vehicles on waterlogged soils without falling foul of the cross-compliance rules. Under normal circumstances they could be penalised for operations which were likely to damage the soil by compacting it and storing up problems of run-off once it dries out.

But after intervention by the NFU, ministers have now conceded that this year's sodden summer has created a set of exceptional conditions. Even the new deadline is said to be subject to review, meaning it could be extended still further if necessary, though the wetter the weather between now and the end of the month the worse the condition of crops remaining unharvested will become.

The West Midlands are among the worst-hit areas but the Government says that given the widespread distribution of affected zones, a national exemption is appropriate.

Mr Benn said the derogation would be in place solely for harvesting cereals, oilseeds and protein crops. "We need to continue to do all we can to help the harvest," he said.

Farmers are being asked to minimise their access to waterlogged areas for harvesting. Officials say it is important that they do not start other activities, such as ploughing in preparation for sowing for next season until the soil returns to a suitable condition.

They should also record any soil damage from harvesting carried out under the temporary exemption, and note remedial action taken. This should in any case be done as soon as practicable before the next crop is sown.

Meanwhile, there are warnings that grain could see the return of a damaging boom-bust cycle with news that cereal production across the EU grew by 50 million tonnes this year.

Preliminary estimates from member states suggest the harvest will total out at 306 million tonnes, a 20 per cent increase on last year.

WHEAT has shown the biggest gain, rising from 119 million tons to 146 as growers responded to last year's price increases by expanding plantings.

And although EU exports are expected to rise, they will be nowhere near enough to prevent the community being left with a 24 million tonne wheat mountain.

NFU vice president Paul Temple said the situation would inevitably see prices fall, which would be welcomed by livestock producers. But he warned it would equally lead to cereal growers losing confidence.