Major escape for green £
DESPITE a fall in the value of sterling this week in the wake of prime minister John Majors political difficulties, UK green rates have been unaffected.
As such, area aid and set-aside payments for 1995/96 can now be calculated, using the conversion rate of about £0.84 = 1ecu, as applies on July 1.
For English cereal growers, this puts area aid at £269.16/ha (£108.93/acre) – some £76/ha (£31/acre) more than last year, reflecting the 10 green £ devaluations since July 1, 1994, and extra compensation for the 7% cut in intervention prices under CAP reform. Set-aside is put at £340.94/ha (£137.98/acre).
"There still remains a risk that base area will be exceeded in England and Scotland non-LFA, but yet again the French may come to the rescue," says Jim Ward of Savills Agricultural Research. "Their proposal to exclude voluntary set-aside from the cropped area could save English and Scottish farmers from reduced 1995 area payments."
Arable payments and support prices 1995
Scotland non-LFA **
CEREAL INTERVENTION PRICE
Nov £101.33/t (plus £1.09 a month).
£0.840997 = 1 ecu.
*Assumes oilseeds face a 5% aid penalty for overshooting reference price.
**Assumes Scotland faces 0.75% set-aside penalty and 1% area aid penalty.
Source: Savills Agricultural Research.