2018 Basic Payment Exchange Rate Set
1st October 2018
The level of Basic Payment per hectare for 2018 claimants is likely to be very similar to 2017 levels.
Support payments for farmers across the UK are set in Euros and then converted to Sterling using the average exchange rate recorded across September.
It has been confirmed by the Rural Payments Agency (RPA) that the average exchange rate in September was £ 0.89281 which is just 0.21 % lower than in 2017 when the rate was €1 = £0.89470.
The exact value of 2018 entitlements will not be confirmed until November - as it is based on the total number of hectares of eligible land claimed for in each UK region – but at this stage the net payments are likely to be very similar to last year.
As well as the BPS, the exchange rate will be used to calculate greening and young farmer elements of the payment regime.
The RPA will commence making the payments for 2018 BPS claims from the beginning of December.
For 2019 and beyond, Defra has previously announced that next year’s Basic Payment will be paid in the same way as in 2018 but with effect from 2020 the payment will come from the UK Government and thereafter direct payments are likely to be phased out over six years to 2027.
Once you have received your Basic Payment it is important that you check that it is the correct amount. When the exact acreage payment is confirmed by RPA the Moore Allen & Innocent Agriculture Team will be able to provide you with a confirmation of the correct payment after allowance for greening, financial discipline modulation, young farmer adjustments, etc. Contact a member of the agriculture team for further information.