The deadline for transferring entitlements for the Basic Payment Scheme (BPS) 2019 is 15 May. If you are planning on selling/leasing out your entitlements, you should look up the net unit value of your 2019 entitlements on Agfood.ie and not confuse this value with the value including greening.

To work out what these entitlements are worth including greening, multiply the net unit value by 1.44. It is the value including greening that is used for trading purposes between farmers.

Entitlements worth €158 to €250 (including greening) are priced approximately 2 to 2.5 times their value to sell. For example, entitlements with a value of €250 including greening could be worth approximately €625 per entitlement (€250 x 2.5) to sell.

Where entitlements are sold without land, they will be subject to a clawback of 20% of the number of entitlements sold

Entitlements worth €250 to €300 are priced approximately 2.5 to 2.75 times their value to sell. Higher valued entitlements worth €300 to €700 are priced 2.7 to 3 times their value.

Where entitlements are sold without land, they will be subject to a clawback of 20% of the number of entitlements sold. If 10 entitlements to the value of €200 each are sold, the buyer would receive eight at €200, with the remaining two entitlements clawed back by the Department.

Regarding taxation, head of tax at ifac accountants Declan McEvoy says farmers selling entitlements to the value of over €37,500 within a 12-month period are liable to pay VAT at 23% whether they are VAT registered or not. “All sales of entitlements are subject to capital gains tax at either 33% or 10%. Farmers who were actively using the entitlements up to the point of sale are liable for the lower rate.” There is no tax or stamp duty on the acquisition of entitlements.

Auctioneers say the prices for leasing and selling can vary in the weeks ahead as they are based on supply and demand

The charge for leasing entitlements is calculated by taking a percentage of their value. So far this year, entitlements worth €158 to €250 are priced at 40% to 50% of their value. Entitlements to the value of €250 including greening could be worth €125 (€250 x 50%) to lease out to someone for one year. Entitlements worth €250 to €300 are priced at 50% to 60% of their value to lease out. Entitlements worth €300 to €700 are priced at 60% to 75% to lease out. Auctioneers say the prices for leasing and selling can vary in the weeks ahead as they are based on supply and demand. Auctioneers charge from 3% to 5% on the value of the entitlements for their services.