With the Basic Payment Scheme (BPS) application deadline looming across Scotland and England, and currency markets affecting most sectors, there’s still time for farmers to consider their options for how their BPS payment is received.
 
This is the message from Andrew Naylor, head of agriculture at Lloyds Bank, who says that whether they’ve already submitted their BPS application form or not, farmers can still change their choice of currency in which to receive payment – Sterling (£) or Euros (€) – by notifying the RPA in writing by the deadline on 15 June 2015.
 
However, he warns they should tread carefully as the past few years have illustrated the degree to which exchange rates can fluctuate.
 
“Choosing to receive your payment in Sterling means accepting the applicable EUR/GBP exchange rate,” explains Andrew. “A change this year is that the exchange rate used will be an average of the European Central Bank rates during September in the scheme year.
 
“So if the Euro weakens against Sterling between now and then, the payment ultimately received in Sterling could be considerably lower than if it were to be converted at today’s EUR/GBP exchange rate.”
 
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