UK farmers are losing millions of pounds when receiving EU payments by failing to manage fluctuations in foreign exchange rates, says Paul Langley of OSTC FX, a foreign exchange company based in Swansea.
“With Single Farm Payments, farmers have to specify on their application whether they want to receive the subsidy in euros or pounds. When opting to receive the payment in pounds, the exchange rate used to calculate the pound’s worth of the grant payment is fixed by the EU on the final working day of September. But farmers receive their payment in December, or later, meaning the payment received will be based on a historic exchange rate. This results in potentially receiving a lower value subsidy due to currency variations in the previous months,” explains Mr Langley.
“Foreign exchange matters arising through UK farmers receiving grants from the EU is gaining more prominence, yet there seems to be limited action taking place to help those get the most of the funds they receive. We have many foreign exchange experts who are able to help those receiving farming subsidies get a better exchange rate and therefore more money, through greater control over the rate of conversion.
“OSTC FX works with businesses with overseas trading activities to help them better manage and save money on this risk. Currently, these businesses either use their banks to exchange money or are forced to call around London-based brokers to seek a better deal.
“OSTC FX wants to provide education and know-how to those in the field, so they can get the best deal.”
Our continued growth and strong reputation in the market enables us to do this and we hope to enhance this initiative in years to come through working with many different industries.