CLA-World First deal offers currency hedge

Landowners have a new option to limit their exposure to currency fluctuations.

The Country Land & Business Association has teamed up with foreign exchange broker World First to allow its members to “hedge” on overseas currencies, potentially offering significant financial savings on transactions like Single Payment conversions and importing agricultural machinery.

“Foreign currency risk is now recognised as a key issue affecting the agriculture sector – often meaning the difference between profit and loss,” said World First’s Chris Birts.

“This partnership will give access to a bespoke currency service focused on providing professional advice on hedging currency risk.”

The weakening of sterling over recent years has seen many importers of agricultural supplies having to increase prices. The effects of this could have been limited by better protection, advises Mr Birts.

Conversely the positive effects on single payments is an area that offers significant opportunity for members, some of whom have locked in to the strong rate for the next two years.

“Our members will no longer have to play foreign exchange roulette with their overseas payments,” said CLA director general, Adrian Gane. “World First will make sure they get the best possible exchange rate available and allow them to budget in advance for future transactions.”