The Scottish government has confirmed the exchange rate for Single Farm Payment subsidies received by farmers and landowners. image expired

With the average UK single payment at around £17,000, and the largest being £2.7million, today’s announcement stood to make or lose thousands of pounds for farmers in the UK. A movement up or down of the Euro against the pound could have made a great difference to payments.

However, the Scottish government revealed that the exchange rate to be used, which was set this afternoon by the European Central Bank, rose marginally against last year’s figure. The exchange rate to be used for the 2011 Single Farm Payment Scheme is €1 = £0.8665, an increase of 0.8 per cent on last year.

Volatility over the past few years has led some farmers to fix the exchange rate. Those who fixed their exchange rate up to 3 years in advance will discover today whether the gamble has paid off or cost them money. Single farm payments in the EU are worked out on a per-hectare basis; the average payment in the UK is around £230 per hectare, with other variables influencing the actual amount.

Rural Affairs Secretary Richard Lochhead welcomed the modest increase, "Farmers will be glad to see that, despite the recent turbulence in financial markets, the 2011 exchange rate for single farm payments has settled at around last year's level and so provides some welcome stability to help with their financial planning."