Single Farm Payment Exchange Rate Shows Small Increase

The 2011 exchange rate to be used for the 2011 Single Farm Payment (SFP) Scheme has been provisionally set at €1= £0.86665. This represents a small increase of 0.8% on the 2010 rate.

The Single Farm Payment paid to farmers is allocated by the EU in Euros. EU regulations state that where this payment is made in a currency other than the Euro, Sterling in our case, then the exchange rate used should be that set by the European Central Bank prior to 1 October of the year for which aid is granted. For 2011, the Euro exchange rate is therefore the rate at the end of Friday 30 September 2011.

NFU single payment scheme adviser Richard Wordsworth said: "We are pleased to see the 2011 rate more favourable than last year’s. This will have a positive impact on those SPS payments that will start to be made in December.

"This will generate a payment above expectations for some and for others it will soften the fall in entitlement values as we move towards flat rate in 2012. It will also help businesses absorb higher input costs which we have seen over the past 12 months.

"With the release of the CAP reform proposals expected soon, the use of a single reference date needs to be considered to ensure non-Euro member states are not adversely affected by the currency markets.

"The NFU continues to monitor and raise its concerns over the delivery of SPS payments which our members will turn their focus to as we approach December 1. There continues to be many issues that need resolving and we hope the minister and RPA will address our concerns in the coming months to ensure prompt and timely payments for all eligible 2011 claimants.

"Finally, our members should be reminded that they need to ensure that the RPA has correct and up to date bank details to avoid unnecessary delays in receiving their 2011 payment and should contact the RPA if they have any doubt."