Payments made to farmers under the 2017 Basic Payment Scheme will be just under 5% higher than in 2016 and at their highest level since 2009, because of a more beneficial currency exchange rate.
Under the rules of the Common Agricultural Policy (CAP), support payments for farmers across the UK are set in euros.
It is then converted to Sterling using the average European Central Bank (ECB) exchange rate recorded across the month of September.
The average rate for September 2017 was €1 = £0.89470, compared to a final conversion rate for the 2016 BPS scheme year of €1 = £0.85228.
Robert Gazely, farm consultant at Strutt & Parker, said the increase in the value of payments will be a "welcome boost" to farmers.
“While farm profitability has improved over the past 12 months, with a weaker pound leading to commodity price rises, farm incomes for many businesses are still way down on 2011/12 levels and levels of farm borrowing are also at an all-time high,” Mr Gazely explained.
“At the start of the month it did look as if the confirmed exchange rate would be the highest we have ever seen by some margin.
“However, September has proven to be a changeable month in terms of currency, with hints of interest rises from the Bank of England causing sterling to strengthen against both the euro and the dollar.
“What may be slightly frustrating for farmers is that if BPS had been converted using the average ECB exchange rate for August (£0.91121), payments would have been nearly 7% higher than last year, which in turn was up 16% on 2015 levels.”
Exchange rates in previous years
2017 scheme €1 = £0.89470
2016 scheme €1 = £0.85228
2015 scheme €1 = £0.73129
2014 scheme €1 = £0.77730
2013 scheme €1 = £0.83605
2012 scheme €1 = £0.79805
2011 scheme €1 = £0.86665
2010 scheme €1 = £0.85995
2009 scheme €1 = £0.90930
2008 scheme €1 = £0.79030
2007 scheme €1 = £0.69680
2006 scheme €1 = £0.67770
2005 scheme €1 = £0.68195
