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U.K. Farmers Union Sees ‘Direct Consequences’ From Euro Crisis

Farmers in the U.K. are facing “direct consequences” from the European debt crisis, as the weakening euro against the pound erodes the appeal of British exports, the National Farmers Union said.

About 77 percent of the U.K.’s exports last year went to European markets, the NFU said in a statement dated June 15 and posted on the organization’s website today. Direct payments made to U.K. farmers by the 27 member states of the European Union may also decline because the euro has weakened against the pound, the Stoneleigh, Warwickshire-based union said.

“This uncertainty means volatility in the pound and euro exchange rates, and ultimately will have direct consequences for U.K. agriculture,” the NFU said. “The euro zone is by far our biggest trading partner and the exchange rate between the pound and euro is the critical determinant of total farm income and profitability.”

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