Allister welcomes SFP increase but warns long-term stability is the key
10 October 2009
Former MEP and TUV Leader Jim Allister has welcomed the substantial increase in Single Farm Payments, arising from a dramatic improvement in the euro/sterling conversion, but has warned that this short-term boost does not diminish the need for long-term improvement in farm-gate prices.
In a statement Mr Allister said:-
“The windfall increase in the Single Farm Payment and LFA payments, arising from Euro/Sterling exchange rate differential, is, of course, welcome and timely in these tough economic times. The fact that this year’s rate is 90p per Euro, compared with 79p last year, allows for a substantial increase. Good news is in short supply, so this boost is very welcome. However, the fixing of the rate on a single day’s spot price (30 September) is a lottery which happily this year has worked strongly to our advantage.
“The short-term relief provided by this uplift must not, however, be used by the Department or Commission as an excuse to relieve the need for concerted action to improve farm-gate returns. The Single Farm Payment was never intended to be the main income stream which it has had to become for many, instead steady and viable prices in all sectors need to be the mainstay, with long-term redress of the imbalance in returns in the food supply chain.
“Long-term farming can’t survive on the wing and a prayer of a favourable exchange rate conversion for SFPs on a specific day once a year. We need a lot more structure and certainty than that.”
