The new Euro exchange rate has been set for calculating 2014 Single Payment Scheme (SPS) payments.
The Euro exchange rate used for calculating 2014 Single Payment Scheme (SPS) payments will be €1 = £0.77730
Released by the European Central Bank, the rate is the last exchange rate set by the bank in September.
SPS payments for England are set in Euros every year and then converted into sterling. Payments under the scheme will be made from December 2014.
Every year some claimants do not update the Rural Payments Agency (RPA) of changes to their bank details, and this causes delays in payments being made. Farmers are urged to ensure that that they have provided the Agency with their current bank details.
To update their bank details with the Agency, farmers should complete an Amendment Form (CReg10). Alternatively, please contact the RPA Customer Service Centre on 0345 603 7777.
The RPA makes all payments directly into bank accounts by BACS transfer.
For the Basic Payment Scheme next year, the Euro exchange rate used will be the average of the European Central Bank rates set over the month of September.
Notes to Editors:
Previous year’s exchange rates:
|Scheme year||Exchange rate|
|2013||€1 = £0.83605|
|2012||€1 = £0.79805|
|2011||€1 = £0.86665|
|2010||€1 = £0.85995|
|2009||€1 = £0.90930|
|2008||€1 = £0.79030|
|2007||€1 = £0.69680|
|2006||€1 = £0.67770|
|2005||€1 = £0.68195|
The European Commission (EC) applied the Financial Discipline Mechanism (FDM) - a reduction in the value of farmers’ claims - for the first time in 2013 and will apply it annually from now on. The FDM will be applied to claims of over €2,000 for 2014. The rate has not been set by the EC yet.
The EC will use the money from the FDM to create a Financial Reserve. This money is put aside to help support the farming industry in times of crisis. Any money that isn’t used will be refunded in the following year to customers who have a deduction made for the FDM in that year. This will show as an additional payment line on the customer’s claim statement. So for 2014 SPS payments, farmers who have FDM applied this year may receive a refund from last year’s FDM deduction.
The EU is due to announce both the FDM deduction rate and the amount remaining in the Financial Reserve during November. The Agency will also calculate entitlement and claim values in November as part of the Annual Value Recalculation (AVR) process, so we can start issuing payments in December as usual.
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