The Euro Exchange Rate for SPS 2011 was officially confirmed today by the Rural Payments Agency, having been announced at close of business on Friday.  The figure, set using the European Central Bank official rate, was confirmed to be €1 = £0.86665. This compares with previous rates of 0.85995p/€ in 2010 and £0.90930 in 2009. image expired

NFU single payment scheme adviser Richard Wordsworth offered some analysis on the announcement, “We are pleased to see the 2011 rate more favourable than last year’s. This will have a positive impact on those SPS payments that will start to be made in December.

“It will generate a payment above expectations for some and for others it will soften the fall in entitlement values as we move towards flat rate in 2012. It will also help businesses absorb higher input costs which we have seen over the past 12 months. With the release of the CAP reform proposals expected soon, the use of a single reference date needs to be considered to ensure non-Euro member states are not adversely affected by the currency markets.”

Mr Wordsworth also reminded farmers to ensure that the RPA has correct and up to date bank details to avoid unnecessary delays in receiving their 2011 payment.

On Friday, NFU Cymru President Ed Bailey welcomed the news, “Typically, on farms in Wales the Single Farm Payment contributes nearly 80% towards the Farm Business income, so it is clear to see that with the SPS currency rate set on the basis of one day in September, today is a particularly important day for farmers in Wales. With the current crisis in the Eurozone and the SPS rate set on the basis of the Euro value on one day, there was a real concern this year that a sudden fluctuation downwards in the value of the Euro could have had a major impact on the value of 2011 Single farm payment, this news will therefore be of some relief to Welsh farmers”.

Payments will be made from 1st December.