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The exchange rate used to convert EU direct payments from euros to sterling looks set to be virtually unchanged from the rate used in 2017.
The rate is calculated based on the average daily euro-sterling exchange rate from the European Central Bank for the month of September. By Tuesday 25 September, the average for the month sat at €1=£0.89425.
That compares with the rate used to convert 2017 payments of €1 =£0.8947, which was up over 5% on 2016 (€1 =£0.85228) and significantly ahead of the €1 =£0.73129 used in 2015. The difference from 2015 to 2016 added £39m to the value of payments alone.
That mainly came about as a result of the 2016 Brexit referendum, when the value of sterling against other major currencies took an immediate hit. So in the short-term at least, Brexit has delivered a boost for NI farmers.
Advance
Meanwhile, a Department spokesperson has confirmed that DAERA is on course to make advance payments for the 2018 Basic Payment Scheme and Greening payment, starting on 16 October. This will be the third year in a row that the Department has been able to issue advance payments.
“We are awaiting the European Commission’s final decision on our request for permission to increase the level of advance payments to 70%,” said the spokesperson.
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