entitlements & leasing for naked acres
Basic Payment Entitlements can be sold, leased or transferred through inheritance and can be sold or leased either with or without land. Sales without land are the easiest to deal with and are the most popular method of trading. VAT is payable on Entitlements traded (sold or leased) without land, unless the seller is non-VAT registered. Unless otherwise stated all entitlements are offered for sale without land and VAT will be due on the price agreed. The entitlements listed are offered subject to contract.
The Basic Payment Scheme (BPS) under the EU Common Agricultural Policy (CAP) will run until 2020, although giving up our membership of the EU will result in the adoption of a new scheme within the UK.
15.08.2016 UPDATE: “Chancellor Philip Hammond guarantees EU funding beyond date UK leaves the EU.” Click here for more.
We can offer advice on the sale, lease and transfer of entitlements, along with leasing for naked acres, and the pros and cons of each type of arrangement. Our experience of the entitlement market means that we are able to offer strategic business planning advice in respect to the CAP and Agricultural Subsidies and advise how to best safeguard your interests throughout the Basic Payment Scheme and beyond. We also offer professional services including:
- Land registration (Rural Land Register)
- GPS mapping
- BPS registration
- Checking the land eligibility for inclusion in your claim
- Advising on Cross Compliance, including greening
- Young Farmer Scheme
- New Entrant Scheme
- Ecological Focus Areas (EFA)
- Crop diversification
- Submitting Basic Payment Claims
- Agri-environment schemes
- Dual claims
- RPA disputes
Please note we also only act on a subject to contract basis, or subject to the submission of RLE1 forms or actioning online transfer applications, when buying or leasing entitlements for our clients. We do not enter into oral contracts on behalf of any of our clients. Entitlements listed may include lots offered by other agents where prices quoted would include an introductory commission payable to Townsend Chartered Surveyors.
The 2016 BPS entitlement values and greening payments which are subject to the Financial Discipline Mechanism were confirmed by the RPA on the 15th November 2016, as shown below:
|Non – SDA||€ 175.27||£ 149.38||€ 77.71||£ 66.23||€ 252.98||£ 215.61|
|SDA||€ 174.01||£ 148.31||€ 77.15||£ 65.75||€ 251.16||£ 214.06|
|Moorland||€ 45.97||£ 39.18||€ 20.39||£ 17.38||€ 66.56||£ 56.56|
The BPS value and Greening value rates form the Entitlement value of the payment per hectare. The figures have been converted from a Euro value to Pounds Sterling, using the 2016 exchange rate of €:£0.85228 which was fixed over the month of September.
The 2016 figures were subject to the Financial Discipline Mechanism (FDM), which was confirmed to be 1.353905% by the RPA. This reduction will be applied to all payments made above €2,000.
Rates before the FDM were:
|English Region||2014 £/ha excluding 1.3% FDM||2015 £/ha excluding 1.39% FDM||2016 £/ha excluding 1.35% FDM|
|Non – SDA||£ 195.41||£ 181.37||£ 215.61|
|SDA||£ 156.49||£ 180.07||£ 214.06|
|Moorland||£ 27.41||£ 47.58||£56.56|
Entitlement trading in Wales, Northern Ireland and Scotland is now established with the respective schemes having bedded in following their introduction in 2015. Unlike the introduction of BPS in England, the Regions chose not to role-over entitlements from the Single Farm Payment Scheme.
Below is our UK BPS Regional Comparison Fact Sheet as at the 3rd August 2016, which you can download by following the link at the bottom of the page. An update on this information can be found within our book UK BPS Entitlements – User Guide.
Unless specifically instructed in writing we are unable to provide advice in respect to the Basic Payment Scheme or any other schemes under the Common Agricultural Policy of the European Union, especially as to how they may affect a particular vendor’s or purchaser’s eligibility for the Basic Payment Scheme.
Any such comments or statements made by Townsend Chartered Surveyors verbally during the process of buying, selling or leasing entitlements, or leasing for naked acres or otherwise cannot be relied upon unless such advice is provided in writing following receipt of written instructions for Townsend Chartered Surveyors to provide such advice. Any such oral comments or statements do not form part of entitlement agency contracts.
If you sell entitlements through us, you will need to authorise us on the RPA online system. This is a simple process, details of which can be found here.
Please follow this link for Entitlement Trading Updates.
Please click the links below for our historic English SPS Entitlements sale price graphs, English SPS Naked Acres rental price graphs, 2015 English BPS Entitlements trading price graphs and 2016 BPS English Entitlement Trading graphs. If you would like a formal valuation of either your entitlements or naked acres, please contact us.