The purchase of Basic Income Support for Sustainability (BISS) entitlements now looks like a better prospect of returning a higher margin.
This follows last week’s admission by Minister for Agriculture Martin Heydon that it will be extremely challenging to get an agreement on the budget for the next CAP finalised in 2026.
The minister stated that a transition period to the introduction of the new CAP covering the period 2028-2024 now “looks more likely than not”. This statement has greatly enhanced the prospects for farmers purchasing entitlements.
Current European Commission proposals for the next CAP signalled an end to the payment of BISS entitlements from 2028 with Ireland one of a few countries who still have such a payment mechanism in place.
The news that entitlements are not likely to feature in the next CAP witnessed the sale value of entitlements fall from 2.3 to 2.8 times their value in 2025 to just 1.25 times their value in 2026, with demand reducing significantly.
Many farmers in the market for entitlements were opting to lease over purchasing but the recent statement regarding a rollover of entitlements now seems to be adding more life in to the market for purchasing entitlements.
There is no guarantee that a rollover to 2028 will happen, but if such a move materialises farmers who purchase entitlements at 1.25 times their value will see more than double the payback on their investment.
Galway based auctioneer Joseph Naughton recently issued correspondence to customers and advisers highlighting that there is likely to be “expected delays in implementing the next CAP” citing that entitlements are a cost-effective investment and that “overall, buying entitlements now, especially for owned or long-term leased land, is a sensible decision”.
The purchase of Basic Income Support for Sustainability (BISS) entitlements now looks like a better prospect of returning a higher margin.
This follows last week’s admission by Minister for Agriculture Martin Heydon that it will be extremely challenging to get an agreement on the budget for the next CAP finalised in 2026.
The minister stated that a transition period to the introduction of the new CAP covering the period 2028-2024 now “looks more likely than not”. This statement has greatly enhanced the prospects for farmers purchasing entitlements.
Current European Commission proposals for the next CAP signalled an end to the payment of BISS entitlements from 2028 with Ireland one of a few countries who still have such a payment mechanism in place.
The news that entitlements are not likely to feature in the next CAP witnessed the sale value of entitlements fall from 2.3 to 2.8 times their value in 2025 to just 1.25 times their value in 2026, with demand reducing significantly.
Many farmers in the market for entitlements were opting to lease over purchasing but the recent statement regarding a rollover of entitlements now seems to be adding more life in to the market for purchasing entitlements.
There is no guarantee that a rollover to 2028 will happen, but if such a move materialises farmers who purchase entitlements at 1.25 times their value will see more than double the payback on their investment.
Galway based auctioneer Joseph Naughton recently issued correspondence to customers and advisers highlighting that there is likely to be “expected delays in implementing the next CAP” citing that entitlements are a cost-effective investment and that “overall, buying entitlements now, especially for owned or long-term leased land, is a sensible decision”.
SHARING OPTIONS