By FWi staff
THE revaluation of the “Green Pound” came into effect during the Bank Holiday weekend, cutting the value of European Union agricultural payments to UK farmers.
The new Green Rate for Sterling is £0.677353 = 1 Ecu, equivalent to a revaluation of 2.6%. All other European Green currencies remain unchanged.
UK intervention payments for May have been reduced by 2.574% to reflect the revaluation, but area aid subsidies for this seasons harvest will be established on 1 July. Crops delivered into government stores this month will now be valued at £85.48/ t rather than £87.50/ t.
According to consultants Andersons, the new Green Rate reduces Over Thirty Month Scheme payments for beef from 55.7p/kg liveweight to 54.2p/kg. Calf Processing Scheme payments are reduced from £80.00/head to £77.90/head). The milk target price is reduced from 22.2ppl to 21.6ppl.
This is the sixth revaluation since 1996, amounting to a total revaluation of 18.7% in two years. During that time, Sterling has appreciated by 27.3% against the Deutschmark.