Exchange Rates September 8, 2015 12:00 am Exchange rates, and especially the £ v € relationship, is one of the key determinants of UK farm profitability. The strengthening of Sterling over the last few months has been one of the contributory factors in depressed market prices for many agricultural commodities. September is particularly key because the average exchange rate over the month sets the conversion rate for the BPS. Just recently the Pound had weakened slightly – good news for UK farmers as a Euro then buys more Pounds and their entitlements are worth more in Sterling terms. However, it seems almost certain that the conversion rate will be less favourable than the €1 = £0.7773 seen for 2014.
