Sterling’s weakness increases CAP Basic Payment

Published 4 October 16

The continued weakness of the Pound against the Euro following the Brexit referendum result will mean higher overall payments to farmers receiving their Basic Payments in Sterling.

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.  

Region Payment rate 2015

Payment rate 2015

€1 = £0.73129

Payment rate 2016

€1 = £0.85228

Moorland

 

65/ha £48/ha £55/ha
Severely Disadvantaged Areas (Non-Moorland) 246/ha £180/ha £210/ha

Lowland

 

248/ha £181/ha £211/ha

Source: AHDB, Defra

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.

The direction of agricultural policy is a major issue post Brexit and will be followed closely by AHDB. We will continue to share information with our stakeholders as soon as it becomes available. For information and analysis on what Brexit means for the UK agricultural industry, please read our Horizon series of publications.