11 April 1997

Revaluation fears

JUST days after the last green £ revaluation, UK farmers face the prospect of another one, cutting into support prices, export subsidies and area aid.

Revaluations are triggered when the difference between the market rate of sterling and the green rate exceeds 5% over a 10-day period. As FW went to Press this week, the one-day gap had already reached 5.33%, following another surge in the pound.

If this is maintained, a green £ revaluation to cut the gap will occur in early June (following a 50-day "confirmation" period).n