Strengthening i keeps hopes up
Strengthening i keeps hopes up
ARABLE farmers are keeping everything crossed as the k continues to strengthen against the £.
Area aid payments for 2000 will be converted to sterling using the average exchange rate between the two currencies during June.
The ks average value for the first half of the month stood at 62.8p, well above the recent 57p low, helped by a 0.5% boost in eurozone interest rates last week.
If the k remains at that level for the rest of the month, UK growers will receive 10% more in their area aid cheques than they would have done at the 57p rate.
But payments would still be about 6% lower than last year. English cereal growers, for example, would receive about £224/ha (£91/acre), a £15/ha drop. The total includes the second tranche of agrimoney compensation triggered by the introduction of the k, and assumes a 2% over-planting penalty. *