The IFA has reached a settlement with its former Secretary-General Pat Smith for €1.9m.
The settlement comes ahead of a High Court case which was due to get underway next week.
Pat Smith worked for the organisation for 26 years and was chief executive for seven years, until he resigned amid a pay controversy in late 2015.
He took two cases against the Irish Farmers Association - one relating to his severance package and one alleging he was defamed.
The IFA has now agreed to pay €1.55m in respect of the severance package and €350,000 in relation to the defamation.
An agreed statement was read in the High Court:
