Farmers who receive their Single Payment Scheme (SPS) monies in Sterling will have been watching the Euro exchange rate eagerly in late September. The conversion rate for their SPS payments is set on 30 September in each year.
Support under the SPS for 2009 will be converted from Euros to Pounds at a rate of €1 = £0.9093. This is a 15% uplift on last year’s figure, and by far the most favourable rate since the Single Payment Scheme started in 2005.
The exchange rate means most UK farmers will receive a larger Single Payment in 2009 than they did in 2008 even though modulation increases slightly between 2008 and 2009. In England, the RPA still needs to calculate the regional average rates for 2009 before exact amounts of payment can be confirmed. Last year these were announced at the start of November.
Working on estimates of the likely rates, the lowland flat rate regional amount is estimated at £139.94 per Ha compared to £91.97 per Ha last year after all deductions. For a hectare of historically combinable crop land in England, the payment after all deductions for 2009 is estimated at £242.20 per Ha compared with £218.10 per Ha last year. This will provide a useful boost to farm incomes at a time when commodity prices have eased and continue to be under pressure.
For more information on this or any SPS issues, please contact:
Guto Edwards on 01234 362905 (Bedford and Buckingham Office)
Simon Smith on 01473 835255 (Ipswich Office)