Sterling’s rise makes euros look attractive

Farm Business, 05 Feb 2010, Chris Redfern

Farmers are being advised to prepare for a rise in the value of sterling as news about the economy exiting recession boosts the pound’s value against the euro.

“Given the unpredictability of currency markets, it’s crucial that British farmers understand how to ride the currency wave and prepare themselves for its peaks and troughs,” said Chris Redfern of currency specialist Moneycorp.

The company offers arrangements to help farmers protect their position.

“We offer guidance on how to manage payment, such as ‘options’ or free ‘forward contracts’, which allow farmers to guarantee a worst case rate or secure an exchange rate in advance of the payment date,” said  Mr Redfern.

“By electing to take this year’s Single Farm Payment in euros, farmers will have complete control over their payment compared with leaving things to chance and taking the payment in sterling. Last year, those opting for payment in euros  could have received up to 7% more than those choosing to receive their payment  in sterling.”