Farmers who fixed are up to 6.7% better off

Farmers who have elected to receive their Single Farm Payment in euros and secured forward contracts to convert it to sterling are up to 6.7% better off than those who didn’t.

Some farmers have secured a rate of 1.09, and if they’d instead elected to receive their payment in sterling, they would be worse off.

Today the European Central Bank has announced the exchange rate at which UK farmers’ Single Farm Payment will be converted into sterling. The rate is confirmed at 1.1628.

Elisabeth Dobson, head of private clients at World First, says, "Farming clients of ours secured a rate of around 1.09 back in March for their 2010 SFP. The extra money this has given them, compared with their counterparts who didn’t fix a rate, is invaluable.

"In addition, securing the exchange rate in advance and knowing exactly how many pounds their SFP will give them has enabled our farming clients to budget well in advance. In fact, we can fix exchange rates for farmers up to two years in advance."

Bryan Wood, of Cow Pasture Farm in Milton Keynes, fixed the rate for his 2010 and 2011 SFP, "I was pleased to have been able to fix the rate for my SFP two years in advance with World First and have been delighted with the outcome of this year’s SFP which has given me more pounds than I would have got had I elected to receive it in sterling.

"Being able to fix the rate has given me peace of mind and has allowed me to budget for the next two years knowing exactly how much I will be receiving."

Tom Streeter of Harps Farm near Bishop’s Stortford secured an exchange rate of 1.14 for his 2010 Single Farm Payment, that he will receive in January 2011. He said, "Being able to fix the exchange rate with a forward contract has the additional benefit of being able to budget more precisely a year in advance.

"Other decisions in farming have to be made well in advance of the SFP, such as spray and fertilizer choices. Being able to ’fix’ one more variable gives a clearer picture and therefore aids these decisions. Things do not happen quickly in farming so having this much time is important. Waiting to find out how much the SFP will be until 30 September can compromise this, especially in the last two years where we have seen such volatility."

Ends

Elisabeth Dobson is available for further comment and interviews.

For further information, case studies and statistics, in the first instance please contact:

Wendy Casterton

t: 020 7801 1060

e: wendy.casterton@worldfirst.com

w: worldfirst.com

Notes for editors

On the Single Farm Payment:

• Farmers receive an SP5 form on which they indicate whether they wish to receive their Single Farm Payment in euros or sterling. They had to remit this form for their 2010 payment by 17 May 2010.

• By opting to receive the payment in euros, farmers can decide when they convert their euros in to sterling.

• With a foreign exchange broker, like World First, farmers can fix an exchange rate in advance of receiving their Single Farm Payment. For example, they could have fixed an exchange rate of 1.15 on 22 April 2010.

On World First’s services for farmers:

• World First can fix an exchange rate for farmers up to two years in advance. Some farmers who fixed this year also fixed their rate for their 2011 Single Farm Payment too.

• World First can also offer currency options to farmers. These work in the same way as forward contracts as you have a ’worst case’ scenario exchange rate but can also benefit from any movements in the exchange rate that are in your favour.

About World First:

World First is a currency exchange broker, serving both private and corporate clients. Set up in 2004 by directors Jonathan Quin and Nick Robinson, the company is experiencing very fast growth and now employs over 80 people in two offices (London, UK and Sydney, Australia). It was named the 53rd fastest growing company in the UK in the Sunday Times Fast Track 2009. It also won ’Service Business of the Year’ at the Fast Growth Business Awards 2010. With over 20,000 private clients and 4,700 corporate clients, World First transacted over £1 billion in 2009.

World First’s corporate clients are generally import or export companies, making regular transfers. World First helps them minimise their exchange rate risk and manage their currency exposure.

Private clients largely use broker services to purchase a property abroad, usually a second home or investment or to emigrate.

World First also offers currency options to SMEs and private clients through World First Markets Ltd, which is authorised and regulated in the UK by the FSA. World First is the first broker to offer currency options which have, until now, been the preserve of very large corporate organisations through their banks.

World first UK Ltd is authorised and regulated by the FSA as an Authorised Payment Institution and is registered with HMRC. World First Markets Ltd is authorised and regulated by the FSA.