19 May 1995

Support increased by devaluation

A GREEN rate devaluation at the start of the week has increased UK farm support by another 0.6%.

The latest change brings May cereal intervention up to £116.79/t. If current green rates are maintained until July 1, area aid payments will also increase to £269/ha (£109/acre) in England, £259/ha (£105/acre) in Scotland non-LFA, and £236/ha (£96/acre) in Wales non-LFA. Set-aside payments will also benefit.

"This is the eighth devaluation since Feb 1, which amounts in total to 6.5% in only three-and-a-half months. For a 500ha, all-arable farm this translates into a payment increase of about £10,000," says farm business consultant Andersons.

As Brussels continues to battle against any revaluations in strong currency countries, UK green rates are expected to improve further, until July 1 when area aid is set.

But there is growing discontent with the current arangements in Brussels, where former French prime minister Edouard Balladur has argued that current monetary instability is detrimental to EU agriculture.