Entitlement Transfer, Sales & Leasing Advice
You may need to know the rules of engagement, be aware of how the entitlements were established and if there are any cross compliance issues prospective sellers of entitlements could be subject to.
McCracken’s have been trading entitlements in N Ireland since they were first introduced. We provide a fully documented transfer service between the Buyer and Seller / Lessor and Lessee. We offer advice on all aspects of entitlement transfer including probate rules and valuations.
Single Application Forms – we provide online applications for the Basic Payment and other DAERA Schemes.
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.
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.
ENTITLEMENT REPORT 2023
Entitlement trading has started. We don’t expect any major changes in the regulations for this year. Already several entitlement deals have been agreed for this year. Early trading allows better availability and more choice, and we would always recommend it.
We know changes to Agri support appears closer but in practical terms DAERA still have quite a lot still to agree. The signs to date would suggest that as farmers you will work harder to receive less, and my hope is that we don’t have bureaucratic chaos in between.
In the new system we know that entitlements will remain but likely in a different form. Entitlement values will be reduced as funds are diverted into new schemes. Initially we think this could be between 25% and 30% of current values.
We know entitlements will be transferrable for sales and leasing but what values they will have is difficult to assess.
In these uncertain times as far as entitlement transfer is concerned it`s probably best not to look too far ahead. Future values will depend on the success of any new support measures and how accessible they are to all who are eligible.
FINAL ENTITLEMENT TRADING REPORT 2023
After the final trading period for Entitlements is over it is always good to reflect and compare on the previous years work. We found that this year the final transfer date of
the 2nd May crept up extremely fast and caught many farmers out, causing a scramble for entitlements at the end. This was exaggerated by Bank Holidays reducing the time allocated by DAERA. We think this should be taken into consideration when setting final transfer dates in the future.
It is always helpful if farmers do not leave completing their SAF until the last week so that their entitlement requirement can be calculated in time. In most cases a Single Farm Payment forms an important part of any farm income and we feel more time and effort should be allocated to the completing of these forms.
Trading values remained similar to last year with leasing of entitlements forming the major part of trades. Sales were scarce by comparison to last year with many sellers reluctant to come to the market.
We are always happy to discuss your requirements on sales or leasing and advise on any aspect of entitlement transfer.
Contact Roy or Sharon
WRJ McCracken
Tel: 028 82 841592 / 028 82 840340
Email: sharon@mccrackens.co.uk roy@mccrackens.co.uk
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