The leaders of the CLA and NFU have liaised regularly for many years and have co-operated on a number of issues, most recently Nitrate Vulnerable Zones, biofuels policy and agricultural tenancy reform.

Members of the NFU and CLA have been asking for even closer co-operation.

While both organisations 'recognise the importance of their respective identities and value,' the NFU said in a statement, the working party will examine how the organisations might work together more effectively for the benefit of their members and the industry.

The first meeting of the working party will take place in September and will aim to set out the scope of the project.