SPS exchange rate announced

 The Euro Exchange Rate for SPS 2011 has been confirmed by the RPA (using European Central Bank official rate) as €1 = £0.86665

The figure will be formally published on Saturday October 1 via the Official Journal.

This compares to the rate of 0.85995p/€ for SPS 2010 and £0.90930 for SPS 2009.

Where a direct payment is made under SPS to a beneficiary in a currency other than the Euro, the member state will convert the amount of aid expressed in euros into the national currency on the basis of the most recent exchange rate set by the European Central Bank prior to October 1 of the year for which the aid is granted. For 2011 SPS, the Euro exchange rate is therefore the rate for Friday September 30 2011.

NFU comment:

NFU single payment scheme adviser Richard Wordsworth said: “We are pleased to see the 2011 rate more favourable than last year’s. This will have a positive impact on those SPS payments that will start to be made in December.

“This will generate a payment above expectations for some and for others it will soften the fall in entitlement values as we move towards flat rate in 2012. It will also help businesses absorb higher input costs which we have seen over the past 12 months.

“With the release of the CAP reform proposals expected soon, the use of a single reference date needs to be considered to ensure non-Euro member states are not adversely affected by the currency markets.

“The NFU continues to monitor and raise its concerns over the delivery of SPS payments which our members will turn their focus to as we approach December 1. There continues to be many issues that need resolving and we hope the minister and RPA will address our concerns in the coming months to ensure prompt and timely payments for all eligible 2011 claimants.

“Finally, our members should be reminded that they need to ensure that the RPA has correct and up to date bank details to avoid unnecessary delays in receiving their 2011 payment and should contact the RPA if they have any doubt.”