With the value of the 2014 Single Farm Payment (SFP) dependent on the euro to sterling exchange rate prevailing on 30 September, recent falls in the value of the euro against sterling are set to result in a 6% reduction in SFP this year.

The euro rallied slightly against sterling earlier this month on the back of some polls suggesting that the Scottish might vote to leave the UK.

Financial markets

That caused jitters in financial markets, with sterling falling against other currencies, including the euro, to stand at £1 = €0.804. 

However, once the Scottish referendum result was confirmed, sterling quickly bounced back, leaving it worth around £1 = €0.782.