With current uncertainty around the future of CAP, farmers who were intending to lease out entitlements are unsure of what to do.

If entitlement values decrease due a cut to the CAP budget, farmers could be left paying a larger percentage of the entitlement value in the lease, unless some safeguards are built into the lease agreement.

There are also uncertainties as to who would own the entitlements in the eyes of the Department in 2020 if they were leased out.

Agricultural Consultants Association (ACA) vice-president Tom Canning believes short-term leases could be an option.

“We are advising clients to lease entitlements on a 12-month basis rather than a long-term lease with the impending changes in CAP supports,” Tom said. “This caused issues in 2015 for those who were doing this and we are keen to avoid this in the coming years.”

Teagasc noted that the CAP reform is “likely to continue on the path towards having entitlements in the hands of active farmers”.

The Department was unable to provide a comment at the time of going to print.