Defra minister George Eustice claims that Basic Payment Scheme (BPS) payments will be worth more in the 2017 scheme year, due to increased entitlement values and greening rates, allied to the devaluation of the £ against the €.
The Rural Payments Agency has confirmed the BPS rate for non-disadvantaged areas of England is €180.46/ha (€175.27 in 2016) with the Greening rate €77.69/ha (€77.71/ha). The BPS exchange rate of 0.89470, confirmed in September, is 5% higher than in 2016.
Mr Eustice says the combined effect of the changes mean that 2017 subsidies will be worth 25% more than in 2015, the last year before the EU referendum caused sterling to plummet.
“Exchange rate changes since the decision to leave the EU have led to a recovery in many farming sectors and BPS payments this year,” he says.
The 2017 payments should start reaching farmers from December 1st.