Currency swing brings farmers subsidy boost

A SWING in the value of Sterling against that of the euro in recent weeks will mean that Scottish farmers will receive more in subsidy than they might have calculated. Yesterday's exchange rate, as confirmed by the Scottish Government and which will be used for the 2010 Single Farm Payment, is €1= £0.85995

This is still below the rate for the 2009 Single Farm Payment Scheme which was €1 = 0.9093 but many farmers following the fluctuations in currency value will be relatively happy about the decrease of 5.4 per cent.

NFUS policy director, Scott Walker, said when in September 2009 exchange rates were at a historic high, SFP payments received a huge boost.

"At that time we were keen to remind members of the adage that currency fluctuations and exchange rates can go down as well as up. This year has been testament to that."

About 20 per cent of Scottish farm businesses are choosing to receive their funds in euros, and this represents about 45 per cent of the total money paid out in Single Farm Payment.

Walker added the Scottish Government had a good record on prompt payment, with the majority of funds usually paid out by the end of December.