The farm organisations and the Government have made "substantial progress" in talks which would see the sector becoming part of the new partnership agreement, Sustaining Progress.
Despite the fact that other sectors have agreed terms with the Government, informal talks are still continuing between the farmers and the Government to find the basis for an agreement.
Both sides agree that substantial progress has been made in the talks involving the Department of the Taoiseach; the Department of Agriculture and Food; the Irish Farmers Association; the Irish Creamery Milk Suppliers Association; the Irish Co-operative Organisation Society and Macra na Feirme.
While the Minister for Finance, Mr McCreevy, has refused to budge on an IFA demand that farmers be given capital gains tax relief on land acquired for roadbuilding, there have been concessions on the major agri-environmental schemes.
It is understood that the Rural Environment Protection Scheme payments will be increased by 30 per cent from January 1st next in a revised scheme which would be more supportive of smaller farmers.
It is also understood that there has been the promise of an improved Farm Waste Management System with a 25 per cent increase in the maximum amount of investment eligible for grant aid and a full upgrade of standard costings.
However, the Government has not budged on the increased levies which were announced in the Budget. These would see farmers pay an additional €10 million this year towards the cost of eradicating bovine TB and brucellosis.
The Cabinet is also believed to have reversed a decision to declare the entire State a nitrate vulnerable zone and will opt for a National Action Programme instead.
This would involve farmers registering with their local county council in order to be allowed spread slurry.
The council will specify when and on what lands the spreading of nitrogen and phosphates is not prohibited at certain times of the year, especially in the wetter months.
The first plenary session of the parties involved has been delayed because of the Taoiseach's involvement in the Northern peace process.