Auctioneers report entitlements being sold for three times their value
High value basic payment scheme entitlements are trading for up to three times their value as demand outstrips supply.
Auctioneers report farmers with naked land are paying up to €2,500 per entitlement to purchase, while entitlements of €750 including greening are being leased at up to €550/year.
Most of the activity is expected to happen over the next two weeks as the deadline approaches.
Auctioneer Joseph Naughton, Ballinasloe said that entitlements worth €750 are being leased for up to 74pc of their value, with those in the €200-€300 range making 58-63pc.
“Farmers renting land are tending to lease and farmers who own the land have a preference to purchase.
“For entitlements worth up to €200, we are getting 2.3-2.6 times their value for 80pc of them sold,” he said, advising that farmers with even small numbers of entitlements not being used “are foolish not to sell” because it is dead money otherwise.
Auctioneers state that the volume of entitlements being traded mirrors last year, however, it is sharply down on the 2011-12 period due to Capital Gains Tax and “clawback” which is having a serious impact.
Farmers are being warned that entitlements which have not been activated will be forfeited if not used, leased or sold in 2018.