Thirty members of the Irish Farmers' Association who occupied the Dublin offices of the European Commission continued their sit-in overnight.
The protest took place as negotiations continued between the EU and the Department of Agriculture on how to compensate 25,000 farmers who will lose out when the EU changes its headage scheme under which a subsidy is paid for each animal.
The group, led by the deputy president of the IFA, Mr John Dillon, entered the building at 10 a.m yesterday saying they had done so because attempts to negotiate with the Commission had proved fruitless in recent days.
The problem arose when the EU proposed that farmers in disadvantaged areas be paid on a per acre basis rather than on the numbers of cattle and sheep they farmed. The EU is attempting to accommodate objections to this form of payment from the US.
The change, being opposed by Britain and Ireland, has meant 25,000 Irish farmers will lose between £2,250 and £900, depending on the system of farming they are involved in.
Despite the fact the majority of farmers, 70,000, will benefit, the focus has turned on the so called "losers" who include Mr Dillon, whose annual cheque will be cut by £2,250.
The farmers entered the building on hearing that the Minister for Agriculture, Mr Walsh, would not be allowed by the EU to pay £20 million in compensation to farmers who would lose out under the new arrangements.
The EU said the Minister could top up the shortfall by paying £16 million next year, £12 million in 2002, £8 million in 2003 and nothing in 2004, but he rejected this.
Last night Mr Walsh spoke again to the EU Commissioner for Agriculture and Rural Development, Mr Franz Fischler, to try and reach a compromise which would be acceptable here.
There is some urgency about finding a compromise because failure to do so would delay payment of the two other major EU rural development schemes, the Rural Environment Protection Scheme and the Early Retirement Scheme, which funnel nearly £300 million annually to farmers.
The Irish Creamery Milk Suppliers' Association president warned last night that no farmer must lose out in the amended scheme and the 20,000 farmers hit by the change would have to receive the same level of payments as they did in the past.