EU decides SFP conversion rate

The exchange rate for converting single farm payments into Sterling was set this afternoon (30 Sept).

Every euro of decoupled support cash from Brussels will be worth £0.68195.

Unlike previous years, when IACS payments were calculated based on the average rate over an entire month, a single date was used this year.

The rate chosen was the European Central Bank’s rate at 2.15pm, European central time, 30 Sept.

It had been feared that this could lead to farmers’ payments being affected by a sudden swing in exchange rates.

However, the eventual figure was in line with expectations.

“We’d based our projections on £0.68,” said Richard King of consultant Andersons.

Last year, the rate was £0.6633 although farmers will not necessarily be better off.

“It is a completely different system now,” said Mr King.

Calculating SFP payments accurately is still impossible because farmers do not yet know exactly how many entitlements they will receive.

There will also be, as yet unconfirmed, deductions to fund modulation, the national reserve and possible national scalebacks.

For more details and estimated SFP payments see the Business section of Farmers Weekly on 7 October