The Scottish Government has today (Thursday, 30 September) confirmed that the exchange rate to be used for the 2010 Single Farm Payment (SFP) Scheme is €1= £0.85995

This compares with the exchange rate for the 2009 Single Farm Payment Scheme which was €1 = £0.9093.   The 2010 rate, therefore, represents a decrease of 5.4 per cent.

The exchange rate used to determine the value of the SFP is set by the European Central Bank.   The Bank uses the Sterling/Euro exchange rate on a single day and the day traditionally chosen is 30 September, or nearest working day.   The rate sets the amount that those who take their SFP in sterling will receive. 

NFUS Policy Director, Scott Walker said:

“Today’s exchange rate remains a huge factor in determining the value of SFP delivered to all eligible farm businesses in Scotland.   The strengthening of Sterling in the past year will reduce SFP receipts on Scottish farms by around 5.4 percent when compared to last year.

“In September 2009, when exchange rates were at a historic high and SFP payments received a huge boost, we were keen to remind members of the adage that currency fluctuations and exchange rates can go down as well as up!   This year has been testament to that.

“Approximately 20 percent of Scottish farm businesses are choosing to receive their funds in euros, and this represents about 45 percent of the total money paid out in Single Farm Payment. 

“As for delivery of the 2010 SFP, the Scottish Government has a good record on prompt payment, with the majority of funds usually paid out by the end of December.   We hope that will continue.  With many farmers, particularly in the North East and Highlands still to complete harvest and input costs for all producers on the rise, a continued commitment by the Scottish Government to prompt payment will provide much needed reassurance for many farm businesses.”

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Contact Wendy Fleming on 0131 472 4020