2024
ENTITLEMENT TRADING REPORT
The late announcement by DAERA of a 9% cut in Entitlement values has meant that the trading time for Entitlements is much shorter this year than in past years. Usually trading for entitlements commenced in February when the Entitlement register is updated. This year because of late start, we have had a very busy first four weeks of Entitlement trading.
There is the usual dilemma of whether to buy or lease with many farmers taking a very cautious leasing approach given the uncertainty of the lifespan of Basic Payment, and the possibility of deeper cuts in Entitlement values in the future.
We see the sale value of Entitlements down from 2023 prices by 25% with a good volume of lower value entitlements in the market.
Entitlements sold to date range from £240.00 to £465.00 per entitlement with higher values likely to absorb future cuts and easier to sell at slightly above face value.
While there is no detailed information available as to how future support will be distributed and through what channels, the purchase of entitlements for many farmers seems too much of a gamble.
Leasing prices have dropped in line with the cuts with fewer high value entitlements in the market. Trading prices range from £60.00 to £206.00 per entitlement with returns remaining close to last year making leasing a shorter term calculated option for many.
Supply and demand will always affect the open market values but while there is uncertainty, market values are likely to remain similar until the DAERA entitlement transfer deadline of the 2nd May 2024. For safe trading we would recommend that trading should be completed before the last week in April to allow Agents to complete paperwork to meet May deadline.
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Entitlement Trading & Single Application Forms.
Over the past 10 days there has been an exceptional rush on the sale and lease of entitlements. It does appear that this year, farmers are tackling their Single Application Forms early. Early birds are finding better value and have a greater choice which is reflected in the numbers of transfers to date. The big debate is whether to buy or lease entitlements and as usual this mostly depends on cash flow. High Value entitlements leased still represent good return on money invested with cross compliance issues being the only risk.
We have been advising our clients on an individual basis. Sales and leasing entitlements available. We advise on all aspects of entitlement transfer from the likely changes in Agri support to transfer rules and dispute resolution.
Land To LET
27 acres to let for silage cutting (Drumquin Area).
Contact either Roy or Sharon for further information.
028 82 841592 (our lines are busy so please be patient)
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