Andrew Clark, NFU head of policy services, said: "The Whole Farm Approach provides a great opportunity to simplify and streamline the submission of data to Defra.
The NFU is expecting farmers who use the system to see a reduction in the number of compliance visits if they are viewed as a low risk after utilising the Whole Farm Approach.
The NFU has worked closely with Defra in the development of the Whole Farm Approach and believes the new system will streamline the amount of information required and cut out duplication.
The Whole Farm Approach is among the first practical steps taken by Defra to reduce the burden of bureaucracy on business.
Farmers who register for the system will get access to the Whole Farm Approach web portal and receive a free CD which will enable them to install on their computers the Appraisal, a self-assessment package which builds a detailed appraisal of their farm and its business.
The Whole Farm Approach means that data only needs to be entered once so it will reduce the time farmers spend filling out forms.
The Whole Farm Approach has been developed in partnership with the industry, Defra agencies and public bodies such as the Environment Agency, Health and Safety Executive and Food Standards Agency.
Farming minister Lord Bach said: "The Whole Farm Approach is an innovative system that puts the needs of farmers at the heart of the way we do business in partnership with them.
Farmers and growers who sign up for the Whole Farm Approach when the full system goes live next year, will be able to reduce the time they spend filling out forms and the number of inspection visits to their farms.
The Whole Farm Approach is an innovative IT system, but it is much more than that.
He added: "We hope it won't be too long before farmers can use the Whole Farm Approach to do everything from filling out the farm census and applying for the Single Payment Scheme to registering their animals and acquiring their waste licences exemptions.