THE green pound will be officially revalued on Monday, leading to losses for farmers. The Department of Agriculture estimates that the losses will be £10 million, but the Irish Co-operative Organisations Society (ICOS) says it will be closer to £50 million over the next year.

As a result, farming organisations are calling for a cut in interest rates as well as a lower exchange rate against sterling.

The Minister for Agriculture, Mr Yates, won agreement in Brussels yesterday for a 2 per cent revaluation of the farmers' pound, rather than the 3.5 per cent EU rules called for.

The decision was reached after a meeting of the agri-monetary management committee.

"The effects should be minimal," a Department spokesman said. "The revaluation will mean losses to farmers of £10 million."

Mr Oliver Mangan, economist at Davy Stockbrokers, said the impact of the revaluation would be closer to £35 million. "Technically the Department is correct," he said. "However, it is not Just subsidies that will be affected. The intervention price is setting the floor price for cattle.

"So a 2 per cent fall in one will lead to a 2 per cent fall in the other. That will cost the beef trade £30 million. There will also be an impact on cereals and sugar beet which will come to around £5 million."

Mr Martin Varley, from ICOS agreed, estimating that the losses could be as high as £48 million. "A 2 per cent revaluation over time reduces the value of that sector by that amount," he said. "This is especially true in a situation where intervention sales are an important market support, as, they are at the moment."

According to Mr Varley, the revaluation will mean 2p off a gallon of milk. "For the average dairy farmer that will lead to a £600 loss in income over the year," he said.

He added that it would lead to 1 1/2p off a pound of carcass of beef and £2 per tonne off grain.

"The Irish pound is clearly over-valued," Mr Varley said.