Exchange Rate Euros: Single Farm Payments

May 21st, 2012

The exchange rate euros will be important to you if your farm is part of the Single Farms Payment scheme, which was introduced in 2005 following reform of the Common Agricultural Policy (CAP). Prior to the introduction of Single Farm Payment, farmers in England received support payments which were closely related to their production system.  The principal aim of this system of support is to ensure greater income stability for farmers; they now receive the same amount of support regardless of their rate of production. This enables them to align their production with market demands. Another aim of the Single Payment Scheme is to improve the competitiveness and sustainability of the agricultural industry in Europe.
If you are claiming Single Farm Payments from the EU, then it is well worth considering all the options available when it comes to receiving your payment, this is when the exchange rate euros becomes a critical factor. When making a claim, you will have a choice as to whether you wish to receive the payment in euros or sterling. If you decide on sterling, then the amount you will receive is calculated using the exchange rate on a specific day, or if claiming euros, then the sterling amount you will receive will depend on the exchange rate at the time you decide to convert it. There are usually several months between when you make a claim and receiving your payment. Due to this time delay, depending on what has happened to the exchange rates between your application and the date you receive your payment, you could lose out.
Finding the best exchange rates euro will benefit your business immensely, a huge amount of businesses leave transactions such as the Single Farm Payments up to their banks as a result of this they can lose out as banks provide a poor exchange rate, at Best Exchange Rates UK we can source you the most competitive foreign currency exchange rates which allows you to get the most value out of your Single Farm Payment transactions.