Farmers and agricultural advisers need to be aware of the fact that in two years’ time entitlements “may not exist”, a Department of Agriculture official has warned.

This comes as the European Commission proposes to replace entitlements with a flat-rate payment per hectare after 2027.

Assistant secretary at the Department of Agriculture with responsibility for the direct payments Fran Morrin urged advisers to keep this potential policy change in mind when dealing with the transfer of entitlements.

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“There is no facility in the proposals for the continuation of payment entitlements,” Morrin saiud.

“Right now, you’ll have farmers coming into your offices looking to transfer entitlements in or out, buy, sell, lease for longer terms along with land – all that normal farmer business.

If this goes on schedule, there will be no entitlements on 1 January 2028,” Morrin added.

He has warned farmers in the market to buy entitlements or planning on selling entitlements to be aware of a potential drop off in value of entitlements.

According to recent reports from auctioneers, entitlements are trading at 1.25 times their value.

Leases

Morrin warned that flexibility needs to be factored into any leases currently being drawn up. Speaking at the Irish Cattle and Sheep Association (ICSA) on Tuesday, Minister for Agriculture doubled down on his official’s warnings around trading of entitlements.

“As of now there will not be entitlements post-2027 in the new CAP. This isn’t an issue for a lot of member states, it’s quite unique to us.

“Even if we did get entitlements we wouldn’t be able to stay at 85%, we would be expected to have another direction of travel towards flattening,” Minister Heydon said. He warned farmers heading into long-term leases to be “very aware” that there is no guarantee post-2027 for entitlements.