Early indications from the trade point to a sharp increase in interest in the sale of entitlements without lands, with lower entitlement values taking the gloss off leasing.
The value of entitlements has fallen by 40% to 45% in 2023.
ADVERTISEMENT
A sharp fall in the value of entitlements under the new CAP is fuelling a spike in interest in the sale of entitlements.
The value of entitlements has fallen by 40% to 45% in 2023.
This has occurred through cuts of 25% to fund eco schemes, 10% to fund the Complementary Redistributive Income Support for Sustainability (CRISS or front loading) and 3% to fund the new young farmer scheme.
ADVERTISEMENT
Further reductions on the remaining entitlement value - the core Basic Income Support for Sustainability (BISS) - apply to values above the national average figure.
This loss in value is making it less attractive to lease entitlements, while a two-year amnesty on the 20% clawback rule is encouraging more owners of entitlements to consider selling over leasing.
Sale values are averaging from 2.2 times to 2.5 times their worth.
Leasing values are anywhere from 35% to 40% returned to the owner for low-value entitlements, to 50% to 60% for high-value entitlements.
In recent years, over 14,000 farmers have traded entitlements.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
However, if you would like to share the information in this article, you may use the headline, summary and link below:
Title: Slashed CAP entitlement values fuel more sales
Early indications from the trade point to a sharp increase in interest in the sale of entitlements without lands, with lower entitlement values taking the gloss off leasing.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
A sharp fall in the value of entitlements under the new CAP is fuelling a spike in interest in the sale of entitlements.
The value of entitlements has fallen by 40% to 45% in 2023.
This has occurred through cuts of 25% to fund eco schemes, 10% to fund the Complementary Redistributive Income Support for Sustainability (CRISS or front loading) and 3% to fund the new young farmer scheme.
Further reductions on the remaining entitlement value - the core Basic Income Support for Sustainability (BISS) - apply to values above the national average figure.
This loss in value is making it less attractive to lease entitlements, while a two-year amnesty on the 20% clawback rule is encouraging more owners of entitlements to consider selling over leasing.
Sale values are averaging from 2.2 times to 2.5 times their worth.
Leasing values are anywhere from 35% to 40% returned to the owner for low-value entitlements, to 50% to 60% for high-value entitlements.
In recent years, over 14,000 farmers have traded entitlements.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS