ENGLISH farmers may be able to receive their single farm payment in euros.

At a briefing in Westminster the Rural Payments Agency told Barclays it was its intention to provide such a facility. It will, however, depend upon the agreement of the European Commission.

Euryn Jones, agricultural policy director for Barclays, said SFP paid in euros would give significant savings in interest charges.

"By securing a regular and reliable source of income in euros, the option of borrowing in euros becomes available to farmers, as the loan can be serviced from income received in the same currency as the borrowing," he said.

"Base rate in the Eurozone is currently two per cent, compared to the Bank of England's base rate of 4.75 per cent. This equates to a potential saving of £2,750 per £100,000 borrowed.

"Without an assurance that SPS can be paid in euros, borrowing in euros would be too great a risk, because an adverse change in the exchange rate could more than wipe out the potential saving."

Mr Jones said Wales and Scotland were already committed to allowing the SPF to be paid in euros from 2005 - some of the bank's Welsh customers had already arranged loans in euros to take advantage of the lower interest charges.