The Single Farm Payment rate for 2010 is expected to be between 5% and 7% lower than 2009 due to the fact that Sterling is stronger now than in Sept 2009, despite a weakening in the past coupld of weeks and a four-month low on Tuesday. However, the rate wills still be the second best since the introduction of SFP in 2005.
The exchange rate for converting SFP from Euros was due to be set yesterday and the Euro was worth between 85p and 86p. The modulation rate will stay at 19% in England but will take a further 1.86% from Welsh claimants, where the rate rises from 9.2% to 10.8% this year. In Scotland, modulation rises from 13.5% to 14%.
English claimants will also see a further minor reduction as the share accounted for by flat rate payments rises slightly and final calculations on this will be made by the RPA at the end of October.