Currency is important to the farming sector because:
- A stronger domestic currency makes exports less competitive and imports cheaper.
- The relationship between the Pound and Euro is vital for both farm income and profitability.
- A strengthening Pound against the Euro impacts on the Single Payment Scheme (SPS).
The exchange rate published on 30th September will be used to convert the Single Farm Payments for those farmers who choose the option to receive their payments in Pound Sterling. The attached briefing will explain these three issues in greater detail within the context of the strengthening Pound.