Farmers risk losing out on subsidy due to poor exchange rates

British farmers risk losing out on a vital European subsidy because of poor exchange rates and hidden fees.

Single Farm Payments will be made by the European Union from 1 December, in line with the amount of land that farmers operate. To many, the payments are a financial lifeline.

Helen Scott, Managing Director of 4X Currency Corporation, said farmers could lose thousands of pounds on their Single Farm Payments if they allow banks to handle the Euro-to-Sterling conversion.

Some farmers have already lost out because they asked to receive their payment in Sterling.

The exchange rate was set on 30 September, when the Euro had fallen to its lowest rate for two years - just 78p.

Scott said: “Those farmers who chose to receive their subsidy in Euros must take control of their money now. Don’t accept the rate offered by your bank. Look out for hidden fees. Shop around for the best rate.”

Helen added: “Farmers that chose to be paid in Sterling got the worst possible deal. On a payment of £20,000, they would have received an extra £300 to £400 if they converted later. It just goes to show the value of monitoring rates.

Helen believes the time has come for a fully transparent service that ensures small businesses get the best rate when converting money.

She added: “We are putting technology in the hands of users so they can see the most up-to-date rate available, every single second. We are disrupting the status quo and putting power back into the hands of small businesses who all too often have their profits eroded by poor conversion rates and hidden charges.”