A shortage of Farm Sustainability Payment (FSP) entitlements caused by new land eligibility rules has led to a sharp rise in the cost of buying entitlements.

Local auctioneers indicate that high value entitlements worth over £400 are now making two times their face value to buy.

Deals for lower value entitlements in the low £200s start from 1.2 times their yield, with some of these entitlements now going for as much as 1.8 times face value.

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Last year, low value entitlements were generally costing their face value to buy, with higher value entitlements selling for slightly more.

The uplift in the trade is being driven by the new rule that allows all areas of land except for laneways and farmyards to be eligible for claiming FSP.

It has seen the total eligible area across NI increase by 4.55% or 45,000ha, but no new entitlements have been issued by DAERA.

“We are a lot busier than usual this year. Most farmers want to buy entitlements for new eligible land, rather than lease them for one year,” said Stephen Keys from RA Noble & Co.

Omagh-based auctioneer Roy McCracken is urging caution among buyers, pointing out that DAERA is likely to cut entitlement values in future years to help fund new schemes.

He also suggests that the new historic years rule has given a “false impression” that there is a supply of extra entitlements available in 2026.

Under this rule, around 2,000 landowners who had no agricultural activity in 2020 and 2021 are no longer eligible to claim FSP and have to sell their entitlements this year.

“Remember, all these entitlements were activated on existing eligible land in 2025,” McCracken said.

As more farmers start filling out their 2026 single application, local auctioneers indicate that there has been a steady increase in the number of queries about trading entitlements.

The online service for transferring entitlements in NI opened this year on 10 March and is set to close on 15 May.