Direct Payments Exchange Rate

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Under the CAP Basic Payment Scheme, the euro/sterling payment rate for 2015 has been set at 0.73129, based on the average exchange rate for the month of September. Direct Payments are set in Euro and converted to sterling using the exchange rate set by the European Central Bank. Due to the weakness of the euro against sterling, the value of CAP payments from Brussels will be reduced meaning farmers this year will face a £15 million income plunge in December. In an already difficult year this will be a major blow to farm businesses, planning to use December CAP payments to meet debts built up as a result of the drop in dairy, beef, lamb and grain prices this year.