LAST MONTH'S end saw the exchange rate to be used for direct farm payments in 2018 confirmed as €1 = £0.89281, a slight decrease of around 0.21% compared with last year.
Based on the average of the European Central Bank rates set over the month of September, the rate will apply to around 16,400 farmers who have chosen to receive their 2018 Basic Payment Scheme support in Sterling. All payments for direct farm payment schemes are originally set in Euros.
NFU Scotland director of policy, Jonnie Hall, said: “The sustained lift in the exchange rate used to calculate support delivered through Scotland’s Basic Payment Scheme reflects ongoing weakness in value of Sterling against other currencies – a process that started after the decision to leave Europe was taken in June 2016.
“Although a weak sterling is good news for support payments and strengthens the competitiveness of UK exports, the downside can be higher priced imported inputs such as fertiliser, animal feed and machinery," he noted. “As recent lending figures showed, farmers and crofters continue to need every pound and euro in what has been an extremely challenging year for all sectors."
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