The deal was brokered with the help of David Brown, the outgoing BEBF chairman.
The BEBF is in a great position thanks to all the good work that David Brown and Sam Sheppard retired chief executive have done.
BEBF chief executive Sam Sheppard said: "It seemed fairest to treat Class 5 races more beneficially than others, because firstly they will be hardest hit by the reduction in minimum values, and also because they represent well over 50 per cent of EBF maiden races.
Outside maiden and novice races for two-year-olds, BEBF backing will cover a further 75 races, of which the majority are for fillies and mares.
In addition, the BEBF is supporting breeders' prizes for nominated classes of races, which is estimated to be worth pounds 171,500, taking its grand total of contributions to over pounds 1.
A total of 380 Flat races will receive BEBF support in 2007, including 305 maiden events, 55 Listed race or handicaps for fillies and mares and 20 fillies' nurseries.
Brown also told members that the association's auditors, Baker Tilly, had been asked to review the BEBF's expenses against income, and that would be made available to TBA council members after the BEBF trustees meeting later this month.
On the subject of a review, Brown said the BEBF had written to the TBA council recently seeking its views, but was still awaiting a response.
The BEBF is the biggest non-commercial race sponsor in Britain.
McCreery said: "Since the beginning of the turf Flat season, there has been a significant increase in the number of races where the BEBF contribution to prize-money has been used to bring added values up to minimum values.
The BEBF, which staged the final of its highly successful novices' hurdle series at Sandown on the Saturday before Cheltenham, has budgeted to allocate up to pounds 750,000 over the next 12 months.
Last year's 24 classified stakes which attracted BEBF backing averaged 5.