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Machinery prices set to rise

With many farmers benefiting from weak sterling pushing up crop prices and an anticipation of an increased Basic Payment Scheme cheque, some farmers will be looking to purchase machinery over the coming months.  But beware; the falling pound is having a significant effect on imported machinery prices.

With most manufacturers importing into the UK, farmers looking to purchase new machinery need to be braced for price increases with some manufacturers suggesting that prices could go up by 10% to counter the exchange rate effect.

On the flip side, weak sterling is having the opposite effect on the export of used equipment which has now become much more attractive.

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Basic Payment Scheme – 2016 Values

The RPA have announced the 2016 entitlement value (for English non-SDA) at €252.98, to include the Basic Payment and Greening elements.  This is 2% higher than in 2015.

 

Based on the RPA September exchange rate of 85.228p/€, this could provide a gross value of £215.61 per hectare, almost £34 per hectare or 19% more than in 2015.

 

From this information, farmers should be able to calculate their approximate 2016 payment.  Claims greater than €2,000 (£1,705) will have will have to deduct 1.353905% from the amount above €2,000 for Financial Discipline, whilst other payment variations may exist for large farmers (over €150,000 Basic Payment) and Young Farmers, etc.

 

The payment window opens on 1st December 2016 and the RPA have pledged to pay 90% of claims by the end of the month.  The status of a claim can be tracked on the Rural Payments online service.

 

Check your payment – significant errors are still believed to exist in the 2015 data, which could be carried forward to 2016 claims.