In 2018 it was €1 = £0.89281 a drop of 0.21%. BPS payments for England are set in Euros and then converted into sterling. This is calculated as an average of the exchange rates set in September. Historically the exchange rate in the past has been as low as 67p per Euro.
This rate has the greatest impact on the level of payments if there is no change in the claim from year to year. This exchange rate will be used to convert English entitlement values, greening payment and young farmer payment elements of BPS into sterling and which forms part of the calculation to arrive at 2019 BPS payments.
Despite the drop in the exchange rate, it is arguable that given the current economic and political uncertainty it is more positive than initially feared. The level of payment this year is going be particularly important, with the timing and prompt payment critical for farmers and landowners.
Based on the 2018 BPS fund being worth c£1.75n at a rate €1 = £0.89281, this exchange rate is likely mean that the 2019 BPS fund could fall by circa c£3.5 million.
If you have any questions, please do not hesitate to contact Butler Sherborn’s rural team on 01285 883740.