Red Tractor has put its controversial Greener Farms Commitment standard on hold until NFU's review into the assurance body's governance is completed.
Red Tractor has confirmed the voluntary 'bolt-on' module, due to come into effect next April, will freeze after the NFU Council questioned whether the body provides value for producers.
The announcement of GFC caused huge backlash as many farmers feared it would eventually become compulsory, forcing them to increase spend on higher environmental standards.
Red Tractor said it will not progress with the implementation of any new standards or additional modules until the first NFU independent review, focusing on Red Tractor governance, is completed.
Following the announcement, an NFU spokesperson said: “This is welcome news – it’s what NFU members and NFU Council have asked for.
“The hard work to get these reviews underway has already begun. Our immediate focus is getting the first review up and running, with the second review into UK food assurance to follow.”
The union's second review will look more widely at farm assurance and will be aimed at 'revolutionising' farm to fork assurance.
NFU Council called for the two independent reviews last week, when it agreed that the ambition should be for work to be completed in time for its next meeting in January.
Commenting on the reviews, Red Tractor chair Christine Tacon said that the strength of feeling from farmers had "become clear to everyone”.
“It has been a difficult period across UK agriculture, which has brought forward frustration from farmers that runs deeper than just our proposals for an environment module.
"We recognise that and have decided that the NFU’s independent review of Red Tractor governance must come first."
She added: “Any continuation of work on an environment module would need to include more detailed dialogue with farmers and supply chains and consider relevant government policy on agriculture for all UK nations.
“The views of our members are very important, and we are sorry that we have been slow to understand them fully."
NFU President Minette Batters admitted that it had been a 'difficult few days for all of us', but the review into Red Tractor governance 'can now begin'.
“It’s time for that to happen, so we can look at what works and what doesn’t, and to make sure assurance is fit for purpose in the years ahead," she said.
“It’s critical that this involves a wide consultation with NFU members through their boards, both regional and sector, and also that it is a collaborative review, undertaken across all the farming organisations.”