UK wants better rate for euro conversion

The UK is leading a push within the Council of Ministers in Brussels to secure a better deal for farmers over the exchange rates used for converting their single farm payment cheques from euros into sterling.

Brussels’ latest proposal is to take the European Central Bank’s quoted exchange rate on Sept 30 in the year preceding the payment year, but non-euro member states have complained that using a single date would put the payment at the mercy of currency fluctuations. For 2005, that would mean a rate of 68.68p/€, even though rates have been as high as 71p.

Other proposals being considered by negotiators would use the average exchange rate over a fixed period of weeks or months. A decision is expected at the end of May.

Meanwhile, the Rural Payments Agency says that farmers wanting euro payments should request them in writing by May 16. Any change back to sterling can only be made with a future SPF claim.