The agriculture sector is one of the most affected by international events as well as the impact on currency markets, with trade demand and import/export costs hugely impactful on the industry as a whole.
This poses a number of challenges for the industry, increasing the need for companies to protect their profits and mitigate their foreign exchange risk.
How international payments can affect the agriculture industry
Transferring money from pounds to foreign currencies is commonplace for many agricultural practices, including importing machinery and other supplies from abroad and exporting goods to international buyers and shippers. In addition, your company may also employ an international workforce of staff who wish to receive payment in a foreign currency and repatriate overseas.
All of these payments, especially if made repeatedly, can incur significant costs if a poor exchange rate is agreed, while costly transfer fees from banks and FX providers can damage your profits. Fortunately, by planning all your foreign exchange exposure and budgets well in advance, you can help to protect your margins.
How we can help your business save money
Farmers and agricultural companies are able to rely on a valuable and cost-effective service with a Moneycorp business account. With 24/7 access to a secure online platform, you are able to process and manage the range of international payments that you may need to make.
Every business is assigned an account manager who understands the ins and outs of your sector and will guide you through currency volatility to ensure you are offered a solution tailored to your business needs.
Our service allows you to make bulk payments for any business costs or staff salaries in over 120 different currencies to over 190 countries. You can also utilise a range of FX tools, including a currency forward contract, spot contract and FX orders which are designed to help you hedge your foreign exchange.
How will currency exchange for agriculture change after Brexit?
Farms both large and small import agricultural machinery and supplies from the EU, sometimes pre-ordering items in advance, which may result in them paying much more than anticipated if the pound falls after the UK has left the European Union.
Brexit may allow UK farmers to sell more goods further afield, requiring multi currency accounts that offer great value for more than just euros. We can help farmers manage multi-currency transactions and limit their currency exposure.
Our guide offers more information on how to navigate the international supply chain and alternative markets after Brexit.