30 June 1995

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

£/ha£/acre

AREA PAYMENTS

England

Cereals269.16108.93

Oilseed rape*451.64182.78

Linseed520.37210.59

Peas/beans388.79157.34

Set-aside340.94137.98

Scotland non-LFA **

Cereals256.51103.81

Oilseed rape500.85202.69

Linseed495.93200.70

Peas/beans370.53149.95

Set-aside324.91131.49

Scotland LFA

Cereals238.0996.35

Set-aside301.57122.05

Wales non-LFA

Cereals236.2695.61

Set-aside299.26121.11

CEREAL INTERVENTION PRICE

Nov £101.33/t (plus £1.09 a month).

GREEN RATE

£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.