Irish Farmers Association claims former General Secretary was effectively fired.

The Association released a statement last night to say the former General Secretary didn't stand down and was, in effect, fired.

There has been major controversy since details emerged of Mr Smith's salary and €2 million severance package.

The IFA has revealed it plans to legally challenge the payment, but Pat Smith says it's a fair deal and wants a million of the money to go to two charities – Self Help Africa and the Vincent de Paul.

Pat O'Toole of the Irish Farmers Journal says association members would rather the money was spent on them given that the average sheep farmers income last year was just €12,000.