The exchange rate for calculating 2014 Single Payment Scheme (SPS) payments will be the worst in seven years as a result of the recent strengthening in the value of the pound.
The rate of €1 = £0.77730 is 7% lower than last year. Rates are set on 30 September each year by the European Central Bank to convert payments for claimants in countries not using the euro.
In addition, sfp claims of more than €2,000 will be reduced by the implementation of the European Commission’s Financial Discipline Mechanism (FDM). This was applied for the first time in 2013 and will apply annually from now on but the rate for 2014 has not been set yet.
The commission will use the money from the FDM to create a financial reserve, put aside to help support the farming industry in times of crisis. Any money that is not used is refunded in the following year to claimants who had a deduction made for the FDM in that year, so for 2014 SPS payments, farmers who have FDM applied this year may receive a refund from last year’s FDM deduction.
See also: Single Farm Payment entitlement trade set to rise
The details of the FDM deduction rate and the amount remaining in the financial reserve will be announced next month, as will entitlement and claim values.
From next year when the Basic Payment Scheme is introduced, the euro exchange rate used for payment values will be the average of the European Central Bank rates set over the month of September.
Claimants are warned by the Rural Payments Agency (RPA) that every year some claimants fail to inform the agency of changes to their bank details, causing payment delays. To update bank details, complete form CReg10 available from the customer registration section on the RPA area of the GOV.UK website, or by emailing firstname.lastname@example.org. Alternatively, contact the Customer Service Centre on 0345 603 7777.
Euro exchange rates for SFP payments
- 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