The average September exchange rate to be used to convert EU payments paid in sterling to UK farmers is €1=£0.89470. This represents a 5% increase in the sterling value of euro-denominated funds available for farmers’ payments in the UK.

DAERA has estimated that the change in exchange rate will increase the total value of 2017 direct payments to Northern Ireland farmers by £13m. This applies to the BPS and the Young Farmer’s Payment, which will increase to £49.90/ha.

In Scotland, Rural Economy Secretary Fergus Ewing said the lower exchange rate would benefit around 16,400 farmers who have chosen to receive their payment in sterling. Scottish farmers can choose the currency of their payments and approximately three out of four have opted for sterling, according to the Scottish government.

The value of sterling has fallen steadily since the Brexit referendum in June 2016. Last year, the depreciation of the British currency had boosted the value of payments to UK farmers by 16.6%. This year’s 5% increase comes on top of that.

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