The CLA has teamed up with foreign exchange experts World First to form CLA Foreign Exchange Services. The service, offered as a CLA member benefit, provides foreign exchange solutions including commercial exchange rates – often up to 2% better than the banks – access to products allowing members to fix exchange rates in advance and a consultative service to manage exposure to exchange rate fluctuations.

A large number of CLA members will have some sort of foreign exchange exposure whether they are buying agricultural machinery in Europe or converting their Single Farm Payment. A service to better manage these requirements, offering financial savings and that ability to hedge will benefit members.

CLA Director General Adrian Gane said: “Our members will no longer have to play foreign exchange roulette with their overseas payments. World First will make sure they get the best possible exchange rate available, and allow them to budget in advance for future transactions.

“We are delighted to launch a partnership with a market leader that will save our members money and ensure they avoid risk caused by currency exchange rate fluctuations.”

Chris Birts, Head of Partnerships at World First, said: “The partnership between the CLA and World First shows that foreign currency risk is now recognised as a key issue affecting the agriculture sector – often meaning the difference between profit and loss.

“This partnership will give the agricultural sector access to a bespoke currency service, focussed on providing professional advice on hedging currency risk.”

He added: “The effects of the weakening of sterling have been in the most part negative. The euro has strengthened dramatically, and agricultural importers, including machinery, fertilisers and crop seed, for example, who have not protected themselves, have had to raise prices as their basic unit costs have dramatically increased. This has had repercussions across the sector as it is the customers who shoulder the burden of the extra cost.

“The positive effects have been enjoyed by those receiving the Single Farm Payment who have benefitted from the rise of the euro and some members have locked in the strong rate for the next two years. The question is how long the euro can maintain these levels.”

For further information contact:

World First
Wendy Casterton
t: 020 7801 1060
e: wendy.casterton@worldfirst.com
w: worldfirst.com

CLA
Ollie Wilson
t: 07702 928828
e: ollie.wilson@cla.org.uk
w: cla.org.uk