The exchange rate to be used for direct farm payments in 2016 has been set at €1 = £0.85228, an increase of around 16.5 per cent compared with last year's rate of €1 = £0.73129. This is based on the average of the European Central Bank rates set over the month of September.

The decision affects around 16,500 farmers who have chosen to receive their 2016 Basic Payment Scheme support in Sterling.

In addition, the European Commission has proposed the application of a budgetary control mechanism called Financial Discipline for a fourth year, which would mean a reduction of just over 1 per cent on all direct payments over €2,000.

Market round-up

Messrs Craig Wilson Ltd sold 441 store heifers in Newton Stewart on Friday to a top of 223p per kg and an average of 195.5p, while 705 store, beef-bred bullocks peaked at 243.8p and levelled at 205.2p. One-hundred-and-ninety-four store, dairy-bred bullocks sold to 181.8p and averaged 136.5p.

The firm went on to sell 2223 prime lambs at Ayr yesterday to a top of £94 per head and 209.3p per kg to average 164.6p (-1.7p on the week).

There were also 921 cast sheep forward when ewes sold to £111.50 for Texels and £65.50 for Blackfaces.

Harrison & Hetherington Ltd sold 47 prime heifers in St Boswells yesterday to a top of 238p and an average of 209p (-5.1p), while 15 prime bullocks peaked at 236p and levelled at 205p (-12p).

In the rough ring 97 beef cows sold to 193p and averaged 126.1p (-4.2p).

There were also 1819 prime lambs that sold to £101 and 210.4p to average 168p (+1p).

A large show of 985 cast sheep saw heavy ewes sell to £87 for Beltex and average £73, while light ewes peaked at £63 for Cheviots and levelled at £46.

The firm also sold 11 prime heifers in Carlisle yesterday to a top of 229.5p and an average of 200.5p (-9.5p), while 14 prime, beef-bred bullocks peaked at 221.5p and levelled at 199.2p (+5.4p). Four prime, dairy-bred bullocks sold to 162.5p and averaged 150p (no comparison). Forty prime, beef-bred bulls sold to 220.5p and averaged 195.5p (+4.3p), while 47 prime, dairy-bred bulls peaked at 169.5p and levelled at 140.4p (+2.5p).

In the rough ring 145 beef cows sold to 186.5p and averaged 120.9p (-6.3p), while 231 dairy cows peaked at 149.5p and levelled at 85.2p (-0.9p).

There were also 2306 prime lambs that sold to £95.80 and 222p to average 169.5p (-2.6p).

The 192 cast sheep forward saw heavy ewes sell to £85.50 for Texels and average £60.24, while light ewes peaked at £47.50 for Swaledales and levelled at £34.73.