TRADING UPDATE ......
TRADING UPDATE 2014
Entitlement trading has also started apace far earlier than last year with many wanting to either sell or secure the correct numbers of Entitlements in advance of the 19 October deadline.
For those with a shortage of Entitlements for the land available, now could be an extremely good time to secure those Entitlements as you are guaranteed an income over the next 5 years for a relatively low investment.
Deals have been agreed over the last fortnight in the region of £170/180 per ha for English Non SDA Entitlement and we would urge anyone looking to buy or sell to act now, rather than wait to nearer the deadline.
With the high volumes of English Non SDA entitlement on the market, the sooner a vendor can instruct us to sell, the higher the possibility of selling will be before the deadline. For SDA and Moorland Entitlement, demand is strong and there is little availability, if you have surplus SDA or Moorland Entitlement, please act now and contact the team on 01829773000.
SINGLE PAYMENT ENTITLEMENT TRADING – 2015
TRADING HAS STARTED!
The first deals of the 2015 entitlement trading period have recently been agreed at Rostons.
With a busy 2014 trading period only just finishing last month, it has not been long until deals are being agreed for this year’s trading.
The enquiries and interest coming in from both vendors and purchasers are notably more than previous years.
Carys Williams of the Rostons Trading team comments that “usually, this time of year is much quieter for Entitlement Trading, the busy rush just before the 2nd April deadline has passed and trading doesn’t really tend to pick up until later in the summer.”
This year however, trends appear to have not followed. It is predicted this is due to two main factors:-
For vendors, the rule set for 2015 which states that if entitlement is not claimed on in 2015, they will fall automatically into the national reserve, means that the thought of a sale of any surplus entitlement is much more appealing than losing them completely for no financial return.
For purchasers, the new trading deadline of the 19th October 2014 means that if an additional amount of entitlement is needed, many are acting now, rather than waiting for the trading window to open again in mid January 2015, once we have moved into the new Basic Payment Scheme.
In 2005/6 when we entered into what was then the new Single Payment Scheme, many issues were seen with delayed payments as a result of buying entitlement in the latter period. Hence why we recommend anyone looking to buy to do so as soon as possible.
English Non SDA Entitlement is currently trading at £180/ha + VAT. Rostons have a number of non VAT registered vendors also selling.
If you wish to register your requirements, whether that be to buy or sell, please contact the Rostons Team on
2014 TRADING PERIOD – TRADING SUMMARY
The 2014 Trading year was a mixture of highs and lows – in terms of both price and supply.
Trade was quiet before the announcement on the 31st October 2013 as both buyers and purchasers were unsure of the future of Entitlement in the new Basic Payment Scheme, however, when it was announced that Entitlement would roll forward into the new scheme, there was certainty for any purchaser that the entitlement bought would be available to claim on up until the end of the new scheme.
This news created more interest and the demand for Entitlement, particularly English Non SDA increased, up to a point where English Non SDA Entitlement was trading at £300/ha. The market then continued to stay strong over Christmas and early January.
We then saw in Mid January that a lot of Entitlement was made available to purchase. Within a space of approximately 3 weeks, Rostons were instructed to sell over three hundred hectares of Entitlement. Supply outstretched demand and prices started to drop to between £260 and £290/ha.
The supply of Entitlement for sale increased further over the next month, purchasers were happy to make low offers with the view that “something must be better than nothing” for vendors who has entitlement with a 2014 expiry date. Many vendors took this view and it wasn’t long until Non SDA Entitlement was trading at £230/ha, then dropping to £210/ha and on a few occasions dropping below the £200/ha mark.
The Non SDA Average price was at £230/ha and in total over 2,270 hectares of English Non SDA was traded.
SDA and Moorland Entitlement was also traded, prices remained fairly static for Moorland, with all deals at and around the £50/ha rate. SDA appeared to be in strong demand and prices again remained fairly strong throughout the period at £250/ha. This was largely because the supply of this type of Entitlement did not outnumber demand and the supply for both Moorland and SDA entitlement on to our register remained steady throughout the entire trading year.
Trading for the 2015 period is now open, if you are looking to buy or sell your entitlement; we now have until the 19th October to trade. Trading will then close until a time in mid January up until a date (which is yet to be confirmed) in April 2015. Please contact the team on 01829 773000 for more information.
ENTITLEMENT TRADING – TRADING POST APRIL 2nd
DEFRA have confirmed on the 20 February 2014 that entitlement transfers post 2 April 2014 are to be allowed to continue in England.
The position for entitlement trading is therefore as follows
2nd April 2014 – This is the deadline for the RPA to receive an RLE1 form to transfer entitlements for the 2014 claim
3rd April – 19 October 2014 – Entitlement transfers can continue using the existing RLE1 form. This will allow transfers to ensure that the entitlements are in the right place prior to the rollover of entitlements, such that entitlements are held in the correct place for the new scheme.
20th October 2014 – mid-January 2015 – It will not be possible to transfer entitlements during this period. This stop on entitlement transfers will ensure that the RPA can process all the RLE1’s prior to the 30 December 2014 so they can ensure the entitlement register is up-to-date and correct going forward for the entitlements to become basic payment scheme entitlements for 2015.
Mid-January 2015 – April 2015 – Entitlement transfers for the basic payment scheme will commence from mid January. However, a date is yet to be confirmed by the RPA. These transfers will be under the basic payment scheme rules and the transferee will need to be an active farmer. It is also intended that transfers will be carried out on the on-line system and not using the paper RLE1 form.
If you have any clients looking to buy or sell entitlements, then please contact the Entitlement Trading Team on 01829 773000.
ENTITLEMENT TRADING – UPDATE FEBRUARY 2014
The position as to entitlement trading post April 2nd 2014 is still yet unknown, however, commentators suggest that trading will be prohibited between the April deadline and the end of this year.
The is suggested as the RPA will need to ensure that the record of entitlements held by each individual claimant is correct at the time of transition into the new Single Payment scheme to take effect from the 1st January 2015.
It has, however, been suggested that trading post 1st January 2015 up until the trading deadline in 2015 will be allowed, which will enable all those who potentially will miss this year’s trading deadline to put themselves in the correct position for their first claim in the 2015 scheme year.
This, however, has not yet been confirmed officially and although comment suggests this is what is going to happen, the RPA have not issued any concrete rules.
It is hope that this announcement will be made as soon as possible to assist anyone thinking of buying or selling entitlements in the near future.
Should you wish to find out more information, please contact the Rostons Entitlement Trading Team on 01829 773000
ENTITLEMENT TRADING - JANUARY 2014
Entitlement trading has picked up with deals being agreed at between £270 and £300/ha for English Non SDA Entitlement.
Deals of smaller lots are being agreed at £300/ha with some vendors selling larger blocks willing to sell closer to £270/ha.
If you are looking to buy or want to sell surplus entitlement, please get in touch as soon as possible with the deadline for trading for 2014 claim year being 2nd April 2014.
With the increased supply of Entitlements onto the register, Rostons Entitlement Trading Team are noticing that the price is starting to slightly dip and vendors are accepting offers in the region of £270 - £275 per hectare plus VAT for English non-SDA Entitlements.
Trading is now moving well and several deals are being agreed on a daily basis.
With the looming deadline of 2 April for all transfers to be completed, the Trading Team urge anyone considering buying or selling Entitlements to do so as soon as possible.
Please contact the Team on 01829 773000.
For further information contact the Rostons office on 01829 773000
January 2014 - Trading Update
Entitlement trading is starting to pick up – particularly with the looming deadline for all trading to be completed by 2nd April 2014.
There is a steady demand from purchasers wishing to buy entitlement and there have been many sizeable deals agreed.
In terms of value,trade has been fixed at £300/ha for several weeks, we are now however noticing a slight increase in supply of entitlement and it is predicted that this may weaken the market slightly.
Deals in the last few days have been agreed at £290/ha + VAT for English Non SDA Entitlement.
Non VAT entitlement is in good demand, although only very small amounts are coming available and only a small amount has been traded to date.
Anyone wishing to buy or sell entitlement is urged to do so as soon as possible. It won’t be long until the deadline in April is with us.
The Entitlement Trading team can be contacted on 01829 773000.
November 2013 - Trading Update
Now that the long awaited news has been announced - that English Entitlements will roll forward, this news has seen a vast incraese in trading activity and there have been several deals agreed in the last few days.
The Entitlement Trading Team urge you to consider buying or selling now, taking advantage of the good trade.
Single Payment Exchange Rate for 2013
The exchange rate which fixes the value of entitlements for 2013 has now been set at 0.83605/€. In comparison to 2012’s rate of £0.79805/€, this year’s rate is in favour of the pound.
In simple terms, claimants will likely be paid a similar amount to that of their 2012 claim.
English Entitlement Trading 2014 – Where will we be heading?
Although the principles of the CAP reform deal were agreed late in the afternoon of June 26th 2012, the legislation and detail of many elements have been left undecided.
One of the key questions arising from this deal is how to obtain entitlements for the new scheme which will be due to take affect from 1st January 2015.
There are 2 options available, being:
1. New Allocation of Entitlements
The Single Payment Scheme as we know it ends on 31/12/2014 and all current entitlements are cancelled. There will then be a new allocation of entitlements for the new scheme on 01/01/2015 based on the land claimed in May 2015.
In order to be eligible for the re allocation you as claimant will need to have “2013 status” and also be an “active farmer.”
This active farmer rule has been included to stop undeserving claimants; however the definition is relatively broad and hinges on a farmer undertaking an agricultural activity, which is defined as “maintaining an agricultural area in a state that makes is suitable for grazing or cultivation”.
More details on this definition will be unveiled shortly.
The amount of entitlements you are then allocated will be based on the number of Eligible Hectares are declared in 2015. This is land that is registered with the Rural Land Register and at your disposal. There is also talk of restricting the number of eligible hectares to what was claimed in 2013. This will be confirmed shortly if this is to be the chosen option.
2. Rolling forward Entitlements
England also has the option to roll current entitlements forward. This will basically mean whatever entitlements are owned as at 31/12/2014 will also be owned in the new scheme.
Although this seems to be the most straightforward
approach, there are concerns that the register of claimants and entitlements is not completely accurate and should this data be inputted into a new IT system, there is potential for even more errors.
There are arguments that new allocations would ensure that the registers are fully accurate and compliant with new computer software.
I have surplus English Entitlement to sell – is there a market for them?
If you have surplus English Entitlement which you are looking to sell you can look to market them now, before any decision has been made.
However, when the decision is made as to how entitlements will be dealt with, this will have an impact on the price of entitlements.
If the decision is to allocate new entitlements, there will only be the value of a 2014 claim to a prospective purchaser and therefore the entitlements are likely to sell for a figure no more than what a claimant would see paid back on them.
If entitlements are rolled forward however, these entitlements will be worth a substantial amount more. There will be the ability to claim from 2014 to 2020 and market forces will determine this price.
I am a new entrant and want to claim Single Payment – how do I do this?
In addition to the usual requirements, such as registering with the RPA and having eligible land at your disposal, the question at the moment for a new entrant is when to purchase entitlements.
As with selling entitlements, there is a potential market prior to a decision being made.
Should the entitlements be re allocated, a new entrant will not have the 2013 status and will be ineligible to claim for a new allocation of entitlements in the new scheme. If there is a new allocation there will be the option for new entrants being able to buy entitlements from the open market post 2015.
If entitlements roll forward, a new entrant in 2014 will be able to purchase entitlements and still be eligible in the new scheme and entitlement values will increase on this basis.
Who will make the ultimate decision and by when?
The decision for English Entitlement allocation will lie with Owen Patterson, Secretary of State for Environment, Food and Rural Affairs and it is predicted that the decision will be made in October 2013.
If you wish to discuss the latest proposals with a member of the Entitlement Trading team please contact us on 01829773000.
2013 Trading Summary
A busy period of Entitlement trading has now ceased at Rostons for the scheme year 2013.
An increased quantity of entitlement from last year was traded between September 2012 and March 2013, however the vast majority of activity was seen in the last six weeks of trading where almost half of the deals were made.
At the peak of trading, prices reached £240/ha and only at the very end of trading did prices drop below £200/ha.
Rostons saw a large number of non VAT entitlements sold in the early stages however it seemed these entitlements were most sought after and were quickly sold. A large range of block sizes were sold this year, ranging from 1ha up to 100ha’s and interest was seen from a wide assortment of purchasers.
It appeared that the uncertainty of the new scheme did not put off many purchasers as the return on investment from now until the start of a new scheme was enough to prove a worthwhile purchase.
With Naked Acre trading not being a viable option for this year, more entitlements were available to sell as those that usually leased in naked acres looked to dispose of entitlement that they could not activate. Similarly, those who had the naked acres looked to buy entitlement and claim themselves, which of course contributed to the market activity.
The last two weeks of trading were extremely busy. A lot of entitlement was put onto our register to sell and then sold almost instantaneously. This was mainly as a result of Rostons ensuring a register of potential buyers was updated and regular contact made. Rostons also saw many other agents from across the country use Rostons to sell their clients entitlement.
In summary, another successful trading year was seen in 2013. Rostons are already seeing interest for the 2014 trading period and a register has been made.
Should you be interested in buying or selling in the 2014 scheme year, please do register your interest with a member of the team.
28 March 2013 - Trading Update
Trading for the 2013 scheme year has now finished.
Prices finished up at £200 to £210 for Eng Non SDA.
March 2013 - Trading Update
With approximately 3 weeks of trading left, activity in the market is beginning to increase, and with the arrival of the SP5 forms and SPS online going live this week we believe this will add further momentum to the market over the coming days.
We have agreed numerous deals over the last week with English Non SDA trading between £210 - £215 (Non VAT registered £220 - £230) per hectare and Moorland trading at £40 per hectare.
February 2013 - Trading Update
The last week has seen a healthy supply of English Non SDA Entitlements coming onto the Rostons register.
The office is experiencing a considerable amounts of enquiries which is very positive considering the reported lack of interest elsewhere in the country. Enquiries into the office are all from genuine purchasers, some wishing to buy sizeable amounts of entitlement. Offers have been in excess of £210/ha, many at £220/ha with non VAT still attracting a premium at £230/ha.
Due to recent increase in supply of entitlement Vendors are advised to remain realistic in regard to asking prices and any potential purchasers are being encouraged to supply us with an offer, before the availability of entitlement decreases .
Should you be reviewing any entitlement requirements, particularly with the submission of SP5 forms on the horizon; please do not hesitate to contact a member of the Entitlement Team.
Entitlement trading continues to remain active, however in the last few days a drop in purchaser calls has been noted.
Any potential purchaser is urged to take advantage of the market and buy entitlements whilst supply is high. This enables purchasers to potentially buy the exact amount they require.
Additionally, non VAT buyers should advantage of the limited amounts of Non VAT registered entitlements whilst they are available.
The peak prices experienced in late January of £240/ha have dropped back to £220/ha, making entitlements even more of an investment for purchasers.
January 2013 - Entitlement Update
In the light of the increased demand for entitlements, Rostons are still urging anyone with surplus entitlements to consider selling. Similarly, those who leased in Naked Acres last year may also wish to consider selling.
Having previously carried out Naked Land transfers, Rostons this year do not believe that a Naked Land Transfer would satisfy the increased RPA criteria when determining what satisfies having “land at your disposal”, regardless of what is worded in the agreement or implemented on the ground. We feel that any agreement would fall foul at inspection and would be potentially subject to penalties or repayment.
With English Non SDA Entitlements trading at £240/ha, trading is swift and deals are being agreed within hours of an instruction to sell. English SDA entitlements have also reached a peak of £195/ha.
Please do not hesitate to contact the entitlement trading team should you wish to sell your entitlements.
Entitlement Trading Update
The New Year has seen a flurry of interest from purchasers of English Non SDA entitlements. Phone calls and enquiries into the office have lead to several successful deals in the first ten days of 2013.
All deals have exceeded their guide price, purely as a result of the demand and increased competition from purchasers. Trading has reached £220/ha with some vendors happy to offer in excess of this. With the guarantee of at least two years of claim, the purchase of English entitlements has proven to be a worthwhile purchase for investors.
We urge anyone looking to sell surplus entitlements to take heed of this opportunity and contact the office, where we have a list if purchasers who are ready to commit to a deal.
December 2012 - Entitlement Trading Update
Entitlement trading has now started to pick up pace, particularly now that Entitlement Statements for 2012 are now available online. Vendors have been triggered to dispose of any excess entitlement they own and similarly, purchasers have come to realise if they are short of any entitlements.
Also in light of the recent lack of negotiations with the European Commission, purchasers of entitlements this year will be able to claim in 2013 and 2014 prior to any reform, as well as a possibility that the reform may not be implemented until 2016.
We predict that the value of entitlements may increase. Recent trading has shown large blocks of entitlements selling for £205 to £210/ha.
October 2012 - Entitlement Trading Update
The Euro/£ exchange rate has been set at 0.79805 for SPS 2012 payments. This means that claimants will receive nearly 7p less per Euro than last year resulting in a reduction in their SPS payment of 8%.
As the busy Entitlement Trading period approaches, recent trading has seen English non-SDA entitlements achieving between £180 and £200 per hectare (excluding VAT).
SDA and SDA moorland entitlements are guided at £160 and £35 per hectare (excluding VAT) respectively.
The recent progress with the CAP reform has seen changes to the original proposals; most importantly it is proposed that entitlements currently in circulation may now roll over into the new scheme, which is likely to be implemented in 2015. This is likely to have a positive effect on prices this coming trading year. However, again it will all come down to supply and demand.
The naked land market may also have an impact on the value of entitlements again this year, as individuals who have historically rented in land to activate surplus entitlements may opt to sell entitlements instead, as it is becoming increasingly difficult to ensure that the land is at the claimants’ disposal if they are not actively farming the land. This increased supply of entitlement to the market could potentially reduce prices.
September 2012 - 2013 Entitlement Available and Trading
Potential buyers of Entitlement are registering their requirements with us and putting in offers. Despite all the uncertainty with the new scheme (BPS) due to be introduced in 2014 or maybe 2015 we do have Vendors with Entitlement to sell with current asking price of £210 for Non SDA Entitlement. Trading has commenced with deals being agreed between £185 to £200.
29th March 2012 - End of A Sucessful Trading Period
The last forms were posted special delivery to the RPA today and what a sucessful trading year it has been we have completed a record amount of transactions with prices ranging between £210 to £250 per entitlement.
26th March 2012 - Last minute trading very active
Last week saw us a record number of transactions for our entitlement trading department as purchasers and vendors realise the deadline is looming. To enable our department to collate all the paperwork and ensure all forms gets to the RPA for the dealine we have made the decison has been made to stop trading as at 4pm today!
13th March 2012 - Vigorous Trading to meet deadline
As the deadline looms closer more clients begin to concentrate their minds on dealing with Entitlement transfers. The available entitlement register is begiinnning dwindle as purchasers secure entitlment, trade continues around the £230 per entitltment for Non SDA.
8th March 2012 - How to claim for SIngle Farm Payment
Following Monday nights Panorama programme we have received numerous calls from people wanting to claim Single Farm Payment, but many of them not really undersatnding what is involved. Therefore the following step by step guide may help:-
Step 1: Will need land at your disposal to claim entitlement on.
Step 2: You will need to register as a farming business with the Rural Payments Agency and obtain a SBI Nmber.
Step 3: Purchase Entitlement to match the area of land to be claimed on.
Step 4: Submit a Single Farm Payment Application Form (SP5) to the RPA before 15th May 2012 and annually thereafter.
Note: Any one claiming for the first time in 2012 will currently not be eligble for an allocation of entitlement in the new CAP Reform Review in 2014.
6th March 2012 - BBC Panorama creates interest
Last nights BBC Panorama programme has created many enquires regarding the buying of entitlement in our trading department this morning. The deadline for purchasing Entitlement for the 2012 claim year is the 2nd April 2012, which is now fast approaching. Over the last week trading has continued at £230 per hectare for Non SDA Entitlement.
28th February 2012 - Calm before the Storm
Entitlement continues to trade steadily at £230 per hectare for Non SDA, but there is certainly a air in of calm before the storm. It is anticipated that as the RPA send information out regarding the 2012 SPS application process minds will begin to focus what entitlement is required or not required for 2012 and therefore increasing the amount of enquiries to our Entitlement Trading Department. We cannot emphasise enough that entitlement requirements need to be sorted sooner rather than leaving until the last few days before the trading deadline.
21st February 2012 - Brisk Trading Continues
The Entitlement Trading department continues to trade sizeable amounts of Entitlement on a daily basis. An increase in incoming calls about Entitlement has been very noticeable in the last week and we predict this will continue as the deadline moves ever closer. Depending on lot size Non SDA entitlement continues to sell in the region of £230-£240 per Entitlement.
14th February 2012 - Entitlement needed to meet demand
Entitlement trading activity continues to increase as potential purchasers remain keen to get their Entitlement in hand to enable them to complete their SPS 2012 submissions as soon as they can. More Entitlement required to meet current demand.
6th February 2012 - Availability of Entitlement increases
The beginning of this week has seen an increase of Entitlement coming onto the market.
31 January 2012 - Trading picks up a pace !!
As we start to countdown the weeks of trading left we have certainly noticed a increase in amount of enquires to buy and sell Entitlement over the last week.
Entitlement is coming onto the books and being sold within hours currently sales are being agreed at between £235 - £240. We are sensing that there is plenty of demand for Entitlement at the moment and therefore predict prices will remain at this level, unless we see a last minute flood of Entitlement coming onto the market.
We recommend that potential vendors wanting to sell Entitlement should get their Entitlement on the market sooner rather than later to beat any last minute rush, or possible dip in the market.
For further information on buying or selling of Entitlement please contact Sam Catling, Siwan Roberts or Ros Rimmer on 01829 773000
12 January 2012 Good Demand For Entitlement
The arrival of New Year and the Entitlement Statements and Claim Statements in December has prompted many enquiries in the Rostons Entitlement Trading Department
There is now 9 weeks until the deadline for submitting the RLE 1 transfer forms. Rostons urge potential vendors of Entitlement to bring any entitlement they may have to sell to the market sooner rather than later to try and alleviate the last minute rush and fluctuations in the market. Rostons are now receiving many calls from potential buyers looking for various amount of Entitlement. Prices are expected to remain firm as we approach the deadline with recent deals being agreed between £230 - £240 per hectare.
For further information on buying or selling of Entitlement please contact Sam Catling, Siwan Roberts or Ros Rimmer on 01829 773000
6 April 2011 Entitlement Trading for 2011 Claim finishes on a High
Rostons, leading Entitlement Trading Agents, report a busy end to the 2011 claim trading period.
Whilst this year it was apparent that purchasers and vendors alike were more organised, with entitlements being placed on the market earlier and in many cases when the 2010 entitlements statement landed on the door step, it was only in the last few weeks of trading that activity became brisk.
Once again we found it was a market where demand did not exceed supply, although unlike previous years, the balance was much closer and led to prices increasing and peaking for regional area payments at £265 per hectare.
With all forms submitted, Rostons now await the approvals and are already taking enquiries from both purchasers and vendors alike for trade for the 2012 claim period.
Rostons also undertake a substantial amount of single payment claim form completions, having last year made the change to completing on line which proved successful, this year the online system has proved equally as beneficial.
Interestingly Tony Rimmer, Director of Rostons, was not only able to start submitting SP5 forms online from 1 March 2011 when the system opened, some two weeks ahead of the paper forms, but also by using the track change facility you could see claims advancing from the initial eligibility checks to undergoing validation.
If you require assistance regarding single payment or entitlements contact the Rostons Office.
21 March 2011 Trading Update
As the deadline for Entitlement Transfers approaches, trading in the Rostons office has been brisk, with a substantial area of Entitlements changing hands.
It is apparent that there is more interest this year than previous years from buyers, which saw a peak in-trade with area entitlements peaking at £260 two weeks ago.
As this flushed out more available entitlements, values have dropped slightly.
For further details please contact the Rostons Entitlement Trading Team of Sam Catling.
18 March 2010 Trading Update
As we rapidly approach the 24th March trading deadline, trading has picked up at a fast pace. Flat rate is still proving popular choice with trading remaining firmly at at market price of £180 per hectare.
It has come to our attention that those who are selling entitlements are to check empowerment status is correctly instated by submitting a CReg01 form to the RPA, this will include agents that are acting on behalf of their clients. Problems may arise if the RLE1 form submitted to transfer the entitlements is signed by an unauthorised signature.
22 February 2010 Trading Update
With trading of area only payments at £180 - £190 per hectare, interest still remains strong with purchasers also realising the investment potential in the higher value entitlements.
Purchasers must now be aware of the imminent March trading deadline, urging those with enquiries to make contact as soon as possible.
15 January 2010 Trading Update
An increased demand in area only sees prices firming, with trading at £175-180 per hectare.
January 2010 Trading Update
A brisk start to trading, values have firmed and demand is much stronger as more and more farmers realise the investment potential.
Area only now trading at £155 -160 per hectare - this is your base price - depending on amount of history price will increase
Purchasers beware it is clear that the RPA are only using SBI numbers when processing deals (not cross referencing with trading name)- please insure you give the correct SBI to which ever agent is transferring entitlements and check carefully the number on YOUR paperwork
In recent years the trend has been for most deals to be agreed in March, not only does this put agents under pressure but creates issues for the RPA - we would urge all those looking to sell or buy to get a deal done by mid February this allows time for the paperwork to be dealt with efficiently and aids the process
December 2009 Trading Update
This year with 2009 payments made earlier trade has started much sooner. The RLR mapping exercise has also highlighted land without entitlements.
As a result more deals have been done to date than by this time last year- values have if anything firmed with Area only entitlements (RAP's) the most sought after - early trade was at £145 per hectare with trade now at £150per hectare
September 2009 - Trading Update
Entitlement trading has commenced for 2010!
There seems to be a significant increase in the number of enquiries, with a number of deals already agreed. However the current supply is not meeting the demand! Therefore those with entitlements to sell are encouraged to get them on the register with clients actively seeking specific areas.
9th February 2009 - Trading Update
Entitlement trading has picked up enormously in the last few weeks, with over 380ha of English Non SDA and 65 ha of standard Welsh entitlement being traded through Rostons since the beginning of the January. 14 deals have been confirmed ranging from lots as small as 2.27 hectares to a large deal of 263 hectares.
By the end of January we had traded more hectares than we did in total last year so we are well on our way to doubling the amount traded by the closing date of trading this year.
There seemed to be a big rise in the number of enquiries in the middle of January, perhaps when farmers received their claim statements and began to think about the forthcoming year Single Farm Payment. Although we have seen a slight dip in the interest since then, we are still receiving a steady number of enquiries about both buying and selling English and Welsh entitlements and expect the interest to pick up again as we head towards the RPA transfer deadline on the 2nd April.
We are receiving new instructions to sell regularly as farmers sense the trade is picking up and it is time to start advertising them for sale. Most of the new instructions will stand a good chance of being sold before the end of the trading year.
We have seen set-aside entitlements selling at around £100 each and there seem to be a lot of demand for it, especially since it was recently announced that they would revert to normal entitlements. Multipliers have ranged from 0.41 to 1.36, with a majority of the deals being around 1.25.
Demand for flat rate and high value entitlements, especially Welsh, seems to be outstripping supply at the moment whereas there are fewer enquiries about purchasing entitlement with a value of around €200 - €250.
Rostons are also able to do Naked Land transfers for those farmers who have entitlements they want to activate for the 2009 scheme year but have a shortage of land so we are always on the look out for available naked land.
Rostons will cease trading entitlements for the 2009 scheme year on 20th March in order to allow the RLE1 transfer forms to reach the RPA by 2nd April, the trading deadline. We are still looking to sell entitlement and are always on the look-out for vendors with entitlement available to sell.
January 2009 - Trading Update
As we are not far off the busiest time of the year for entitlement trading, the trade is picking up quickley with a steady stream of enquiries about both buying and selling English and Welsh entitlements.
The deals the entitlement trading team here at Rostons have done so far this year consist of a lot larger lots, whereas last year the deals were a lot smaller amounts. The multipliers have ranged from 0.7 up to 1.28 2007 face value this year, less than last year as the face value continues to decrease along with the historic element.
Although there have been a large number of deals, supply still outstrips demand. With set-aside now being converted to Normal entitlements we are expecting more flat rate entitlements to come on the market. High value Welsh entitlements are always in high demand but there are not many willing vendors.
We still have a number of lots of both English and Welsh entitlements on our register and the list will carry on growing as some may farmers realise that they cannot use their entitlements this year and wish to sell.
We are also able to do Naked Land transfers for those farmers who have entitlements they want to activate for the 2009 scheme year but have a shortage of land so we are always on the look out for available naked land.
Rostons will cease trading entitlements for the 2009 scheme year on 20th March in order to allow the RLE1 forms to reach the RPA by 2nd April, the trading deadline.
April 2008 - Review Trading Year 2007/08
The 2007/08 has been a record trading year. Our office has transferred over 600ha of entitlements, which is 200ha more than last year and over double the amount traded in 2005/06. But with one deal of nearly 700ha not completing, the year could have been more prosperous.
Though demand this year has been greater than previous years, supply still out weighs demand. This year, like previous years, did not get off to a flying start with only a handful of deals being confirmed before Christmas. Trade picked up in early January with the majority of trading occurring in March with nearly 20 deals being confirmed.
Multipliers used ranged from 0.7 up to 2.6 times 2007 face value.
Flat rate English entitlements varied greatly in price depending on the requirements of our clients. Prices for flat rate ranged from £95 per ha up to £170 per ha.
Low value English entitlements with historic traded around 1.2 to 1.8 times 07 face value, but as the value of the entitlement increased the multiplier used decreased. Entitlements with 07 values exceeding £1,000 multipliers drop as low as 0.7. We believe that the pricing policy we use reflects a good investment for the purchaser and a good return for the vendor.
Set aside trading this year has been extremely quiet, though this was expected. Only two deals were confirmed compared with 24 deals last year. This is down to set aside being 0% for this year, so there hasn't been the need to offload un-wanted set aside entitlements.
There has been a lot of demand for high value Welsh entitlements. Many potential purchasers looking for values of in excess of £250 per ha willing to pay anything between 1.5 to 2 times face value. This year the highest value lot of welsh entitlements on our books was 150 ha which achieved between 1 and 1.1 times face value when sold. Welsh farmers are missing a trick though, purchasing high value entitlements will see a greater total monies return for their investment, but investing in lower value entitlements with a smaller multiplier will see a greater percentage return with nearly all the investment be recovered in the first year they are claimed on.
Trading this year has been very successful and we hope to carry this on into the 2008/09 trading year. We do still have entitlements both English and welsh available to sell and this list is growing following enquiries from potential vendors looking to off-load surplus entitlements before this time next year.
March 2008 - Update
As the deadline (2nd April) for this trading year aproaches, the availability of English NON SDA entitlements is far greater than the demand. But demand for English SDA and Welsh high value entitlements seem to out weigh the supply.
Our offices will look to cease trading on the 20th March 2008 to give time to exchange contracts and for payment to clear before submitting RLE1 form to the RPA to meet the 2nd April 2008 deadline.
Multipliers used this year have ranged from 0.9 up to 2 times 07 value based on the rate of the return over the next 5 years to the purchaser.
September 2007 - Update
Availabilty is still continuing to outstrip demand however there are more deals being done than this time last year. There is a good amount of interest being shown but most seem to be just looking.
The value of entitlements has varied this year. This is due to the fact that a purchase now would give rise to payment in 2008 and that payment would be made up of a lesser proportion of the historical value, hence a lower return for their money in most cases. For those high value entitlements in 2005 the value soon drops away to the flat rate from 2008 to 2012.
The Nil Rate of Setaside for 2008 has been approved in principle by the Council of Ministers. It is now in the hands of the Commission to create a draft regulation covering how this would work in practice.
It does not look likely that these rules will be clear before crop establishment this autumn. Once the regulations are finalised they have to go for approval to the European Parliament. Farmers should make decisions about their setaside at their own risk - as it stands the requirement still needs fulfilling.
It is thought that the regulations will not change the entitlement payment. Additionally the SAS entitlements are likely to still have to be claimed first before the other payment is unlocked, because of the way the RPA computer system works. As such they will still be a liability and farmers would in theory still have to pay to get rid of them, though if there are no restrictions to them, there is no benefit of paying someone to take them.
An update will be posted as soon as we hear any further progress
May 2007 - Update
All transfers for the 2007 claim have now completed succesfully and our entitlement trading team are now looking to the 2008 claim period.
As expected there has been a very slow start to this trading period following a busy month incurred by all completing SP5 forms ensuring every last detail is correct.
The early enquries have begun, prospective purchasers are keen on our thoughts regarding values this year which many expect to be between 1.2 - 1.4 times 2005 value. We welcome any enquiries whether you are interested in purchasing or selling entitlements or are just after some general advice.
April 2007 - Update
The trading of entitlements never did get off to a flying start. Whilst vast quantites have been available throughout the trading period, the distinct lack of purchasers retained modest prices accross the board. Normal English entitlements traded mainly at between 1.7 and 1.9 times the 2005 value depending on whether dairy premium was involved. As we approached the tail end of the trading period, some vendors keen to sell reluctantly accepted face value.
With the current press regarding the future of FVP's, trading in these slowed down rapidly during January as many then saw them as an expensive investment that could possibly half their worth in the next two years. To date these have rarely traded above 1.9 times the 2005 value.
Setaside has continued to trade with a negative value with many vendors keen to be rid of it. The balance between the guaranteed and non-guaranteed routes of disposal has been fairly equal.
On the whole the trade for the 2007 claim has been steady whilst availability outstripped demand. This caused a resultant price reduction and left many entitlements still available following the dealine for transfers.
February 2007 - Update
As we approach the deadline for entitlement transfers, April 2nd, and the first farmers are beginning to recieve their Single Payment, interest in purchasing entitlements has grown with a sgnificant number of enquiries turning into deals. Having now recieved monies from the RPA a number of clients have quickly purchased more entitlements to cover naked land and increase the value of their Single Payment.
Naked land update
Farmers with spare entitlements are advised to seriously consider activating these. We have a number of clients with naked land wishing tolet their land through a tenancy and implementing a contract farming agreement in order that others can activate their entitlements. This is a sensible way to retain ownership of entitlements as if not claimed on for three consecutive years, they will be confiscated into the national reserve.
Charges for this are as follows: -
- Arable / Grassland - £40 - £50 /acre
- Setaside - £50 - £75 /acre
A charge will also apply if we provide you with a contract farming agreement and tenancy agreement. Please telephone Chris Ruffley for further information on - 01829 773000.
January 2007 - Update
Interest in purchasing entitlements has grown vastly now that we are into the new year. The past week has been rather successful for entitlementtrading.info having seen a number of significant deals taking place.
December 2006 - Update
December has shown an ongoing increase in the volume of entitlements on the market. This has been reflected by a growth in interested parties wishing to purchase entitlements. It is expected that the number of transfers will grow rapidly into the new year given the April deadline.
Prospective purchasers are advised to contact us now given our broad range of entitlement values and block sizes currently available
November 2006 - Update
Following the summer and a downturn in workload many farmers have now turned their attention to administrative work. The last two weeks have shown a significant growth in interest, again from people with naked land.
We are obtaining a number of lots with little or no historic element. These have proved popular given that payments in subsequent years will increase rather than decreasing rapidly as with high value entitlements.
Naked land is trading at £35/acre. We have a high demand for this and anybody wishing to dispose of such land should get in touch.
October 2006 - Update
Increase in interest with a number of deals taking place. Most purchasers are those that have traded away setaside and therefore have naked land. Those that have taken on land without entitlements are also showing a keen interst.
Transferors continue to pay to trade away setaside. We have setaside available if you are interested and guarantee to activate it. The best example of this would be someone growing industrial crops.
Contact us for further details.
September 2006- Trading Update
Entitlements with Dairy premuim trading well at similar multipliers to last year
Higher value less demand
2007 Trading Has started - August 2006
August update - more interest in trading, much talk and now some deals are happening
Entitlements with Milk Quota worth more trading at a 1.9 multiplier
Those with average history 1.5 multiplier and low value area only 5 times multiplier
Setaside trading - August 2006 update
It appears that certain agents still haven't grasped the rules - if you are unclear what to do speak to us
We are offering two routes to trade your setaside as last year - both are legal.
The warranted route where the transferee will warrent to claim against the entitlement and the non warranted
If you grow industrial crops / non food crops and want to be paid to take setaside ie warrenting to claim call us
2006 Trade update
Naked land / low value entitlements
If you have land without entitlements or you have low value area ones we can help you make more of them
Interest already exists for 2007 for welsh and english land
2006 Trade update
The extension to the deadline was very much a PR exercise in our opinion, there was certainly no rush of fresh trade
All in all a good start to entitlement trading for Carver Knowles(NW) Ltd, all transfers have been approved and none rejected out of a total of well over 125 transfer forms submitted
Normal entitlements traded at 1.6 - 1.8 (times the 2005 value) depending on value of the 2005 claim, FVP's traded at 2 - 2.25 times
Set aside went either on the non warranted route at £75 per acre or the warranted at £100 - £150 per acre in both cases the transferor paid
The fact that the trade was at a negative value doesnot make it artificial. Much misinformed information is circulating on this subject so do not believe all you read
Celtic trade - Scotland and Wales
Values higher in the Celtic regions with most trading between 1.95 and 2.25 times the 2005 payment
The land used to activate Entitlements / Authorisation's can be different every year.
If a claim was successfully made to the National Reserve and entitlements are traded you will lose the National Reserve element.
Discussion Groups / Speaker for meetings
If any group wants a speaker on Single Payment, quota, entitlements, land and property issues we are able to supply one.
Tony Rimmer is currently giving a thought provoking paper titled ' Farming the next Generation' - contact the office for details
|2 April 2007
||Deadline for Transfers for 2007 claims
||SP5 Forms should arrive
|15th May 2007
||Deadline for 2007 claims
||Payment possibly for 2006 claims - UNLIKELY
|As mentioned above, the transfer of Entitlements is far from straight forward. We use legal agreements in addition to the RLE1 form. This follows consultation with leading agricultural solicitors Burges Salmon. If you buy or sell make sure the agent uses such agreements we have heard of one 'leading' agent who so far some 3 weeks after the deal was done has not supplied the buyer with any paperwork.
Sale of entitlements will give rise to Capital Gains Tax (CGT).
As a business asset taper relief will be 50% in 2006 and 100% in 2007:
i.e. 20% tax liability in 2006
10% tax liability in 2007
CAP REFORM & SCHEME UPDATE .....
UPDATE JULY 2014
Over the course of the last few weeks, some more decisions on how the Basic Payment Scheme will be implemented in England have been released, in particular the Greening elements of the Basic
Payment application, which will make up 30% of the overall payment.
For those farmers that are all grass, there is likely to be very little change, but for those that are cropping, there will be requirements that they have to meet. In brief these are as follows:
To ensure they have enough crops being grown on their land to meet the Crop Diversification requirements.
- Ecological Focus Areas (EFA)
This is effectively land in environmental features or land that is taken out of production and for those with a large arable acreage, this can be high. 5% of the arable area will need to be put into what is known as EFA’s.
It was recently announced by the Minister that the following features would classify as EFA features:
- Land lying fallow
- Buffer strips
- Catch and cover crops
- Nitrogen fixing crops
The Rostons team urge all farmers to start to consider what areas they have of land that can be put in Ecological Focus Areas. Whilst at first glance this seems worrying, when farmers consider what they have available there are usually significant areas of field corners and margins against streams or woods and areas that have generally been the least productive that could meet the Ecological Focus Area requirement.
Another announcement was made by the Minister on the 10th June which related to potential reductions in ELS payments. If your ELS Agreement started after the 1 January 2012 and contains certain options that would qualify for ecological focus areas under the new Basic Payment Scheme, then you will receive a reduction in payment whether or not you use the option/feature as part of your Ecological Focus Area requirement from 2015.
Natural England has said they will notify the affected parties, who are predicted to be approximately 10% of the agreement holders. There will be the following options available to you:
- Find more points under ELS to keep monies at £30 per hectare.
- Accept the reduction, or
- Terminate your ELS Agreement with no penalty
If you think you may be affected by these changes and would like to find out more, please contact the team on 01829 773000.
Entitlement Values Set for 2013
Entitlement values for the 2013 Single Payment Scheme (SPS) in England have now been confirmed by the Rural Payments Agency (RPA). The payment rates will be:
- Non SDA will receive €323.97 (£272.19)
- Upland SDAs other than moorland will receive €260.29 (£218.68)
- Upland SDA moorland will receive €45.47 (£38.20)
The amounts above however will not be the exact amount paid into a claimant’s bank account. There will be a reduction of approximately 2.5 % which is referred to as “Financial Discipline”, which has been introduced to ensure spending does not exceed the budget set.
There will then be “modulation” taken off the final payment, which is at 19%.
Allocation of Entitlements
The long awaited news has finally been announced - English Entitlements will be rolled over to the new Basic Payment Scheme (BPS) rather than a new allocation being carried out.
This means that an assessment will be carried out of who "holds" the SPS entitlements on 31st December 2014 and those entitlements will then become BPS entitlements. As England is now rolling forward, there is no need for the 2013 "golden ticket”.
If you buy entitlement now for the 2014 claim year, they will be available to be claimed on until 2020.
With this confirmation, entitlement trading will likely take a faster pace and the Rostons team urge you to consider selling and buying entitlements, particularly now as there is certainty for the future.
Please contact our Entitlement Trading team for more information.
May 2013 - CAP Reform Update
The European Council of Young Farmers (CEJA) has recently stated that the new Common Agricultural Policy budget should include mandatory funding for Young Farmers.
This funding has been stressed as being fundamental for encouraging new entrants into Agriculture and will apply to farmers under the age of 40.
Direct Payments (Pillar 1) are proposed to be topped up by an extra 25% to these young farmers and has been described as a “buffer” for the new entrants in their first 5years.
Within Pillar 2, a further support plan has been proposed to get new farming businesses off the ground. This has been described as “Installation Aid” of up to £59,000.
The president of the CEJA, Joris Baecke spoke at the recent Young Farmers National AGM and said he wanted to have “more farmers under the age of 35 running farms.”France was used as an example of how this aid can assist new entrants and revitalise farming. Neentrants in France have had this incentive package for several years and the country now has the highest percentage of farmers under 35.
This proposal is now being negotiated by the European Commission, Parliament and Council of which further details will be unveiled in June. The Rostons team will update you as and when negotiations progress.
Simply, this means that there is a possibility direct payments for the 2014 scheme year will be lower, due to the reduction in fund to pay the Single Payment claimants. Decisions are pending as to how much the UK will transfer and confirmation will be made later this year. As soon as more news is announced, the Rostons entitlement trading team will be issuing updates.
Additionally, a review has been requested by the National Farmers’ Union (NFU) to concentrate on how Rural Development will be implemented in light of the funding issues, of which we will again update you of the progress as it occurs.
April 2013 - Cap Budget Mechanisms
There has been recent talk in regards to a “Financial Discipline” measure to recover a shortfall in the 2013/14 CAP Budget. This discipline is a proposed 5% cut on all Single Payments in excess of £4,260.
If exchange rates stay at this level when the unit value is set for 2013, currently 6% higher than that of last year this loss may be offset.
Final agreement on this proposal is set for the 30th June 2013. Any decisions will be reported on the Rostons Entitlement website and we will update you with any progress in the meantime.
December 2012 - CAP Reform Latest
With the first anniversary of proposals passing by in October 2012, it appears that the projected reform date of 1st January 2014 will be implausible. The European Commission have confirmed that the start of the commission will be delayed until at least 1st January 2015.
There are two potential outcomes at present in regard to how entitlements will be allocated post reform:
Present entitlements could be cancelled and a new allocation of entitlements will be made or alternatively they may use the current allocation of entitlements post reform, which would certainly make things a lot easier, however, nothing has been confirmed as of yet.
SPS Payment Rate for 2012
The payment values per hectare before modulation are as follows....
Non-SDA 323.91 Euros £258.50
SDA 260.29 Euros £207.72
SDA moorland 45.47 Euros £ 36.29
The euro conversion rate applied is £0.798.05. The modulation is 14 % for payments up to 5,000 euros and 19% for payments over 5,000 euros.
Oct 2012 - CAP Reform Latest
CAP reform negotiations are complex and ongoing. It had originally been anticipated that negotiations would have ended with an agreement in the Spring of 2013 to allow time for implementation of the scheme to start January 2014, most consider this date is unachievable.
Some points that parties differ on are:-
Active Farmer - the exact definition of Active Farmer is still to be debated because of the differing agricultural practices across Europe.
Capping - most contentious proposal, with some apposed and other wanting simpler approach.
Crop Diversification - the commission did not think about farms which are predominately grass but do grow small areas of arable or maize for fodder and livestock feed.
Ecological Focus Areas - very much like the set aside scheme dropped a few years ago. It is clear that the Parliament and the Council differ significantly from the commission on this point.
What is apparent ids that the new regime will bring a whole new level of challenge to farmers.
Sept 2012 - CAP Reform Update
During the summer Danish Presidency Progress Report and draft European Parliament Reports were published, all of which have proposed numerous amendments to the initial proposals.
At the end of the Danish Presidency in June, Cyprus took up the reigns and generally there is some concern that Cyprus may not drive much progress during its term up to December, putting pressure on the Irish Presidency to push matters forward during their January to June 2013 stint.
Key amendments to the initial proposals which are relevant to Entitlements are:-
Proposal whereby member states already operating on a regional or hybrid basis may choose to retain existing entitlements. This is particularly relevant for England as it would enable England to retain the current entitlements, rather than carrying out a new allocation.
2011 Status - The golden ticket
Similar basis as to whether this could be 2010 and/or 2011.
Transferring 2011 Status
It is now proposed that this could be transferred to more than one farmer with the sale or lease of land.
Value of Payments/Entitlements
Where there is a phasing of entitlement values due to a historic system being in place, an initial allocation of no less that 30% of the reference amount should be attributed to the value of the entitlements.
Amendments such as this are broadened out to include young farmers and new entrants but with the emphasis on new entrants
March 2012 - Golden Ticket Status
Claimants who have claimed Single Farm Payment (SFP) in 2011 have, what is commonly being referred to as the “Golden Ticket”, which allows them to apply for an allocation of Entitlement under the proposed new SFP due to be implemented in 2014. Claimant’s who have this status but will not be claiming a reallocation of entitlement as they have or will be going out of farming and giving up their land, may potentially be able to sell this status. Please contact us to discuss.
Jan 2012 - CAP Reform Update
New scheme to be introduced 1st Jan 2014 (1st Jan 2015 looking more realistic).
The current scheme as we know it along with all exsisting entitlement are to be extinguished.
From Jan 2014 (2015) a new multilayered payment will be introduced. Made up as follows:-
- Basic Payment
- Young Farmer Scheme
- Small Farmer Scheme
- Areas of specific national restraints
(BPS) Basic Payment Scheme
Farmes will need to apply for a new allocation of entitlements in the first year of the scheme. Enititlements will only be allocated to farmers who have activated at least one payment entitlement in 2011 and can meet the Active Farmer diefinition.
Claiming the Basic Payment Scheme (BPS)
The claiment must:-
- Meet difinition of Active Farmer
- Match Entitlements against eligble hectares
- Have the land at his disposal on a single date - like to be equivalent to 15 May
- Keep the land used to claim BPS as eligible land throughout the calendar year.
There will be only one type of entitlement.
The two year useage rule will remain
Entitlement will be be transferrable only by sale.
Active Farmer Difinition
To be an active farmer the one of the two following requirements must be met:-
- The annual amount of direct payments muct be 5% or more of the total receipts attained from non agricultural activities in the most recent fiscal year. OR
- The Claimants agricultural areas naturally kept in a state suitable for grazing or cultivation.
Set-aside entitlements will be converted to normal entitlements. They will still be valued at the relevant SPS flat rate.
- You will not be required to Set-aside any of your land for SPS 2009 scheme year.
- You can still choose to leave uncropped land and can use this to support Normal Entitlements
- On your 2009 application form, old set-aside entitlements will called “Normal; formally Set-aside.”
National Reserve (English reserve) entitlements will also convert to Normal.
You will no longer need to activate your former English reserve entitlements every year to avoid the national reserve top-up element being lost to national reserve.
- The Normal entitlement usage rule will apply. They will also be transferable.
- On your 2009 application form, old national reserve entitlements will called “Normal; formally national reserve”
From 1st January 09, when transferring out entitlements you do not need to be a farmer at the date of transfer. This means you can retire then transfer your entitlements.
You no longer need to have used at least 80% of your entitlements allocated in 2005 to transfer entitlements by sale or gift without land.
Currently you have to activate your Normal and Special entitlements once in every three years. This will still apply in the 2009 scheme year. However…
- From the 2010 scheme year you will have to activate your entitlements for payment at least once every two years. This means in 2012 you will need to activate any entitlements that were last activated in 2007 or 2008 to avoid loosing them to the national reserve.
DEFRA Minister Jeff Rooker announced on the 29th August that FVP authorisations and the negative crop list are to be abolished with effect from 1st January 2008. This means that farmers will not require FVP authorised entitlements in order to claim Single Payment on land growing fruit, vegetables and potatoes.
There will be a consultation in the autumn to look at whether there will be an opportunity for those people growing negative crops to claim the single payment, and whether these people will be allocated new entitlements.
Naked land available to activate entitlements on
Over the last month significant demand existed for naked land. Most was transfered at £40 per acre with some lots moving at £35 per acre
Demand for this will exist for 2007 claims
Setaside transfers the FACTS - 2nd March 2006
Much has appeared in the Press on this subject some factual some mischief making and some dangerously wrong information
Setaside CANNOT be surrendered to the National reserve in England only in Wales - one agent has sent a letter saying this is possible they are WRONG - it is not possible
We are offering two types of trading a low risk route whereby the transferee will not warrant to claim - they will however try
The other route is where the transferee will warrant to claim - this is more costly but has minimal risk
Setaside transfers - Update 23rd February 2006
Much confusion exists following Welsh office announcement that Setaside Entitlements can be surrendered to the National Reserve.
The RPA have confirmed this is not possible ithin England.
Large quantities are continuing to trade with the transferee (taker) being paid £50 per acre (£123 / ha)
If you wish to trade away or take setaside contact the office
Transferor does not need to be a farmer - 27th January 2006
2005 SPS applicants who wish to transfer entitlements prior to 15th May 2006 do not need to be a farmer. This WILL NOT apply to 2007 transfers
|How can an entitlement / authorisation be traded?
|Entitlement may only be transfered between farmers by;
|Permanent Transfer –
||with or without land
||for 12 months with land
||On long-term agreements via Farm Business Tenancy for more than 10 months in length
|IMPORTANT: Entitlements belong to the farmer and are not attached to the land put on the SP5 in 2005