Rural Payments and Services

Direct Payments for scheme years 2015 through to 2019 have been fully funded by the European Commission (EC) with the base entitlement values and ceiling amounts set in euros. These euro values were subject to an annual exchange rate calculation to convert the payments to sterling. Farmers and crofters had the option to receive Direct Payments in either euro or sterling.

As a result of EU withdrawal, funding for scheme year 2020 Direct Payments and beyond will not come from the EC but instead be covered by Her Majesty’s Treasury (HMT) through domestic funds. As a consequence the option to receive Direct Payments in euros will no longer be available. This means that all payments will be made in sterling. The domestic legislation adopting the effective exchange rate to convert euro values to sterling is currently in progress but will be the same rate as adopted for the 2019 year €1 = £0.89092

This early confirmation of the exchange rate will aid business planning and help to provide financial certainty for all farmers and crofters regarding the value of their direct payments for 2020.

All direct payments for scheme year 2020 onwards will be made in sterling. If you haven’t provided a Sterling bank account to RPID before you will need to follow the guidance below.

We make payments under all schemes covered by IACS using the Bankers Automated Clearing Services (BACS). We can only make payments to a bank account which accepts BACS payments. If we do not already have your business’ nominated bank account details, or if you want to change them, you can do this on our website.

Alternatively, you can fill in a Register your Bank Details Form – Sterling (PF03) and send it to your area office. Blank forms are available on our website at https://www.ruralpayments.org/topics/your-business/forms/ or from your area office.