Exchange rate set for single payment scheme

Farmers should note that the exchange rate for the first Single Farm Payment will be EUR1 = £0.68195p.

The NFU has repeatedly expressed its concern that the determination of the rate occurs by taking the rate from a single date only and is not an average taken across an entire month. Monthly averages would, in principle, lessen the possibility of the rate being hit by speculation or other outside factors, such as political developments.

This year, however, the rate on 30 September is above the average for the month, which is good news for farmers.

Furthermore, so long as the UK remains outside the single currency there is bound to be an exchange rate risk, whatever reference date is chosen and across what period. One way farmers can mitigate that risk is by electing to be paid in EUR.