Sterling’s weakness increases Basic Payment
The exchange rate for the Basic Payment is now set according to an average rate for September. The table below shows Basic Payments for regions in England, as set out under Defra’s consultation on CAP reform, based on the 2016 exchange rate set of €1 = £0.85228.
Compared to 2015 payments, this represents a 16.5% increase which will be welcome news to farmers, AHDB Dairy reports.
It has been agreed that the Basic Payment will continue to be paid to UK farmers until 2020, despite the vote to leave the European Union. This has given some certainty around income for at least the next four years. ■