LONDON--(Single Farm Payments will be transferred into sterling.)--The 28th September is a key date in the UK agricultural calendar. At 13:15 GMT, following a difficult year for the Eurozone, the European Central Bank will announce the exchange rate at which this year’s
“With the right kind of product, there are ways of fixing your rate in advance, taking the variations in currency values out of the equation when you’re planning your budget.”
Recent developments in the Eurozone have seen the single currency rally somewhat against the pound, following a period which has seen its value continue to fall against the world’s major currencies.
The euro has fluctuated significantly against the pound in the last year, with a high of 0.879 on 28th October 2011, and a low of 0.778 on 20th July 2012.
The announcement brings the issue of the influence of the exchange rates sharply back into focus for anyone involved in importing or exporting agricultural goods.
Many farmers already use forward planning strategies to manage their budgets for things like wheat prices. However, securing the best exchange rate possible is another very good way of protecting profits.
Tom Barclay from World First, the currency brokers, said:
“The euro/sterling pairing has been highly unpredictable this year, with the exchange rates fluctuating constantly, it’s important that anyone involved in agriculture takes the business of managing their currency transactions seriously.
“With the right kind of product, there are ways of fixing your rate in advance, taking the variations in currency values out of the equation when you’re planning your budget.
“With so many variables to deal with in farming, from the weather to the price of goods and services, it’s important to know that the value of your currency transfers is one area where you can achieve some kind of control.”