Trading of entitlements closed this week, with many being sold for less than their face value. Uncertainty over future payment systems in Scotland, along with some forced sales, saw many region one entitlements being sold for as low as £160/ha.
Entitlements which were claimed in 2018 had to be claimed in 2019 or they would be taken back by the Government, which forced some farmers to sell on the open market.
Furthermore, the Scottish Government is yet to confirm future values and whether current entitlements will continue to be used outside the EU. This means valuers can’t guarantee payments beyond the 2019 scheme year.
However, despite some low prices, on average region one entitlements were going for around £200/ha, which included greening payments.
Region two entitlements were selling around £28-£35/ha, while region three entitlements were in short supply, with very little area traded.
“Trading has been slow and people who have been forced to sell entitlements were willing to take less than face value to prevent them from being reclaimed by the Government,” said Gordon McConachie, farm management consultant at Savills.
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