EURO EXCHANGE RATE GOOD NEWS FOR WELSH FARMERS

By Gareth Wyn Jones on Oct 1, 08 03:10 PM

Farmers' Union of Wales deputy president Emyr Jones today described the establishment of the Euro-Sterling exchange rate for 2008 Single Payments as good news for Welsh farmers.

The rate has just been set at €1=£0.7903, compared with rates of €1=£0.6968 and €1=£0.6777 in 2007 and 2006 respectively.

"The 2008 exchange rate represents an increase in Single Payment receipts of 13.4 per cent, which will go a significant way towards offsetting the increase in production costs experienced in the past 12 months," said Mr Jones.

"It will also help make up the deficits associated with increases in modulation and inflation. The fact that the pound has remained relatively weak against the Euro over the past six months has also helped make our exports more competitive," added Mr Jones

However, Mr Jones warned that a beneficial exchange rate should not be interpreted as an increase in farm incomes.

"On-farm production costs have rocketed over the past year due to rises in fuel, feed, and fertiliser costs, not to mention sky-high energy bills, and the situation has been exacerbated by this year''s poor harvest," he adde