The exchange rate to be used to calculate 2018 direct payments and the Young Farmers’ Payment was announced by the Department of Agriculture, Environment and Rural Affairs (DAERA) today (Friday, September 28).
Direct payments in the UK are paid in sterling except where the farmer elects for payment in euro by the deadline for submission of Single Applications.
Sterling payments for the direct payments – including Basic Payment Scheme, Greening Payment and Young Farmers’ Payment – will be made using the exchange rate of €1 = £0.89281.
On the basis of the new rate, it is estimated that the total net value of 2018 direct payments to local farmers will be reduced by £0.61 million compared to 2017.
This is due to the marginally higher exchange rate for 2017, which was €1 = £0.89470
Direct payments are set in euro and converted to sterling each year using the exchange rate calculated in accordance with the EU regulations.
In 2018, the rate is the average market rate for the month of September according to the European Central Bank.
The 2018 Young Farmers’ Payment will be paid at the rate of £46.32/ha. Young Farmers’ Payment is made on a per-hectare basis up to a limit of 90ha.
In the UK, the Rural Payments Agency (RPA) will make full payments on BPS 2018 claims from the beginning of December.
The RPA makes all payments directly into bank accounts by BACS transfer.