BPS 2019 – Exchange Rate Set!

The euro exchange rate for calculating BPS 2019 payments has been set. The rate is an average of the European Central Bank exchange rates set in September and will be €1 = £0.89092.

BPS payments for England are set in euros and then converted into sterling. The previous year’s exchange rates for BPS were:

BPS 2018: €1 = £0.89281
BPS 2017: €1 = £0.89470

The 2019 rate is the third most favourable since 2009 when it topped 90p per Euro.

The exchange rate in the past has been as low as 67p per Euro. , with Brexit uncertainty, the payment level will be crucial this year. The NFU comment that “based on the 2018 BPS fund being worth circa £1.75n at a rate €1 = £0.89281, this less favourable exchange rate now is likely mean the 2019 BPS fund could fall by around circa £3.5m in Sterling terms, this fall in funds has been restricted as a result of using the average exchange rates for September as opposed to the spot rate set for the 30th September, if that rate had been used the fall could have been circa £13.5m!”

Carys Studley, who completes many BPS applications for Farmers in England and Wales comments that “This exchange rate will be used to convert entitlement values, greening payment and young farmer payment elements of BPS into sterling. This is what calculates the payment you receive. There are other factors which need to be considered too, like Financial Discipline and any possible penalties”

Rostons complete about 600 BPS Applications on an annual basis for applicants in England and Wales. If you need any assistance or have any concerns over this year’s payment, please contact one of the team on 01829 773000.