With two weeks to go until the deadline for transferring entitlements for the 2019 scheme year, the market for leasing Basic Payment entitlements in NI has become increasingly active.

Auctioneers report that entitlements are generally selling for around their full value this year, and are being leased for around half their value.

Entitlements from the regional reserve have the NI average value of €330

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“High-value entitlements are still in good demand for lease, but there are a lot of lower-value entitlements for lease and the market is more sluggish,” said Omagh-based auctioneer Roy McCracken. He said that the trade is being affected by entitlements coming onto the market which were originally awarded to young farmers and new entrants from the regional reserve in recent years.

Entitlements from the regional reserve have the NI average value of €330 (including Greening).

“It is depressing the low end of the market. Lower-value entitlements are harder to shift,” McCracken maintained.

At present, Basic Payment entitlements are only guaranteed to have a value in NI for the 2019 scheme year.

With that uncertainty, auctioneers state that leasing has become more popular this year, although some farmers with clean ground are still buying entitlements in the expectation that they will be needed for direct payments after 2019

However, DAERA has proposed retaining entitlements as the basis for direct payments in 2020 and 2021, although a final decision is yet to be made on the matter.

With that uncertainty, auctioneers state that leasing has become more popular this year, although some farmers with clean ground are still buying entitlements in the expectation that they will be needed for direct payments after 2019.

Entitlements can only be transferred through DAERA online services and the deadline is midnight on 2 May 2019. The process requires the Business ID and Entitlement Transfer ID of the farm business that the entitlements are being transferred to.