Save money on your international payments within the agriculture industry

The agriculture sector is constantly affected by the volatility of the foreign exchange markets, particularly with all the uncertainty surrounding Brexit. Our dedicated team of currency exchange experts understand the challenges that you face, which is why they are on hand to offer guidance and assistance where needed.

Foreign exchange for agriculture

In agriculture and agribusiness, the transferring of money from pounds to foreign currencies is often done for a number of reasons including; importing agricultural machinery from abroad, exporting goods to international buyers and shippers, and paying staff who send money back home to other countries.

Supply chain

If you’re a farm owner, it’s highly likely that you import agricultural machinery and other supplies from the EU and in some instances, even pre-order items in advance. As a result, you may find you are paying a large amount if the pound falls after the deal is agreed.

There’s a possibility that your supply chain will be affected once Brexit has taken place, so your business will need to evaluate its processes in order to improve efficiency when importing and exporting goods overseas. Border control between the UK and Europe may tighten up and as a result, goods will take longer to reach their destinations. As a result, it would be worth looking at alternative trade routes, as they may become more affordable once border controls kick in. You will also need to consider whether your farm will still be able to sell products across the EU.

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For agricultural workers, the continual underperformance from the pound, coupled with agricultural growth in countries such as Romania; and concerns surrounding Brexit, people are becoming less interested in coming to the UK to work seasonal jobs. Subsequently, the need to offer competitive salaries, result in farmer’s bottom lines increasing. All these factors contribute to the profits that farmers make, however they can be managed through planning your foreign exchange requirements and budgets in advance.

Single Farm Payment

There are multiple reasons why farmers must familiarise themselves with the currency market and solutions available to them in the midst of Brexit. One of the most obvious changes brought on by Brexit is the adjustment in receiving the Single Farm Payment.

Currently, British farmers have the option to receive the subsidy from the EU in pounds or in euros, but the rate assigned for sterling payments may not be the most favourable. While the future of subsidies is in question and may not require foreign exchange in the future, we can help farmers make the most of any outstanding payments. Direct Gov provides in depth information of how the single farm payment works and changes that are likely to take place after Brexit.

Here at RationalFX we tailor our currency exchange solutions to the specific requirements of your business, whilst enabling you to make your overseas payments cost-effectively. Our range of business products can help reduce the financial risk that your business could be exposed to during Brexit.

SPOT

Secure an exchange rate to make an international payment within two business days.

FORWARD

Fix a rate today for a specific date in advance. This enables you to hedge against exchange rate fluctuations.

LIMIT ORDER

Nominate an exchange rate you wish to achieve and we will automatically purchase the funds on your behalf once this rate is reached.

STOP LOSS

Triggers when the market drops to undesirable levels to protect you against the rate continuing to fall.

Should you open an international payments account with us, you will be appointed a dedicated account manager, who will offer you specialist guidance on the foreign exchange markets and the best options for making money transfers. We can help you make fast, secure payments, whilst attaining great exchange rates.