entitlements – sale, lease & naked acre letting

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.

If you have any problems getting through to us by phone, please email us with your telephone number and we will get back to you.

From 2021 the Basic Payment Scheme (BPS) in England will be phased out, with 2027 being the last year.

We can offer advice on the sale, lease and transfer of entitlements, along with naked acre letting, 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 UK 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 – here
  • GPS mapping – here
  • BPS claims – here
  • Checking the land eligibility for inclusion in your claim – here
  • Advising on Cross Compliance – here
  • Young Farmer Scheme – here
  • New Entrant Scheme – here
  • Ecological Focus Areas (EFA) – here
  • Crop diversification – here
  • Submitting Basic Payment claims – here
  • Agri-environment schemes – here
  • Dual claims – here
  • RPA/RPID/RPW/DAERA disputes – here

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.

UK Regional Comparison Fact Sheet 2021

To download/print a copy click here

English BPS payment values for 2022

The 2021 payment values and each subsequent year until 2027 will be worked out by applying certain percentage reductions against the 2020 payment rate for each type of entitlement.

The payment reduction bands for BPS in England up to 2027 will effectively function similarly to income tax, with the first band of reductions applied to the first £30,000 taken from the Scheme, with the next level of reductions to the next £20,000, and so on.

 

Entitlement value pre-reduction based on value in 2020 Percentage reduction applied by band and year to 2020 Entitlement Value
English Region Entitlement Value (2020) Payment Band Scheme year
2021 2022 2023 2024
 Non-SDA £233.22 <£30,000 5% 20% 35% 50%
 SDA £231.57 £30,000-£50,000 10% 25% 40% 55%
 SDA Moorland £63.95 £50,000-£150,000 20% 35% 50% 65%
  >£150,000 25% 40% 55% 70%

 

From 2024, delinkage of entitlements from land will occur. Payment will be based on claims from a reference year(s). We have provided guesstimates for the values in this instance.it is proposed under the current consultation that payments will be delinked from land.

 

Payment per Non-SDA entitlement (£)

Payment Band (Payment Value per entitlement) Claim year – unit value in each band
2021 2022 2023 2024 2025    2026    2027
≤ £30,000 (up to 128.64ha) 221.56 186.57 151.59 116.61 87.46 58.30 29.15
£30,000 – £50,000  (128.64-214.39ha) 209.89 174.91 139.93 104.95 78.71 52.47 26.24
£50,000 – £150,000  (214.39-643.18ha) 186.57 151.59 116.6 81.62 61.21 40.81 20.4
> £150,000  (over 643.18ha) 174.91 139.93 104.94 69.96 52.47 34.98 17.49

 

Payment per SDA entitlement (£)

Payment Band (Payment Value per entitlement) Claim year – unit value in each band
2021 2022 2023 2024 2025    2026    2027
 ≤£30,000  (up to 128.64ha) 219.99  185.26 150.52 115.79 86.84 57.89 28.95
£30,000 – £50,000  (128.64-214.39ha) 208.41 173.68 138.94 104.21 78.16 52.10 23.45
£50,000 – £150,000  (214.39-643.18ha) 185.26 150.52 115.79 81.05 60.79 40.52 20.26
>£150,000  (over 643.18ha) 173.68 138.94 104.21 69.47 52.10 34.74 17.37

 

Payment per Moorland entitlement (£)

Payment Band (Payment Value per entitlement) Claim year – unit value in each band
2021 2022 2023 2024 2025    2026    2027
≤ £30,000  (up to 128.64ha) 60.75 51.16 41.57 31.98 23.98 15.99 7.99
£30,000 – £50,000  (128.64-214.39ha) 57.56 47.96 38.37 28.78 21.58 14.39 7.19
£50,000 – £150,000  (214.39-643.18ha) 51.16 41.57 31.98 22.38 16.786 11.19 5.60
>£150,000  (over 643.18ha) 47.96 38.37 28.78 19.19 14.39 9.59 4.80

 

  = Guesstimates

 

Entitlements have not been subject to the Financial Discipline Mechanism since 2019.

BPS Transition for England

BPS will be phased out in favour of the Environmental Land Management scheme see here. As shown above, payments will be reducing yearly until the final payment in 2027.

During this transition period, previous rules and regulations have been amended or removed by DEFRA.

  • All 3 of the greening requirements: crop diversification, Ecological Focus Areas and the permanent grassland rules from BPS will no longer apply.
  • The “Greening” element of the BPS payment will be incorporated into the total payment for an entitlement.
  • DEFRA have adjusted the “Young Farmer” payment to a 17.5% top-up, down from the previous figure of 25% to take account of this.
  • The rule in which BPS entitlements must be claimed upon every 2 years or else be clawed back by the RPA will no longer apply from 2021.
  • There are no more young farmer/new entrant applications to the national reserve from 2022. (There may be something similar to replace this)
  • From 2021 all payments will be made in sterling.

De-linkage will apply from 2024, entitlements will no longer be needed nor will you need to farm any land.to claim the remaining years of BPS.(further details are to be released about this). The final year of putting in a BPS claim will therefore be in 2023.

From 2022 DEFRA will offer an “exit scheme” where retiring farmers can receive a lump sum payment in place of Direct Payments (whether under the BPS or delinked payments) they would have received during the remainder of the transition. This figure will be 2.35 x the average figure claimed between 2018-20 and capped at £100,000.

Entitlement trading in Scotland, Wales and Northern Ireland

Whilst England have a confirmed plan for BPS payments to be phased out by 2027, the regions all differ. In Scotland BPS is expected to continue in the same format until at least 2024, speculatively it will continue after this but may need to meet certain environmental conditions. In Wales, payment is confirmed to be the same for 2022 as 2021 and is likely to remain the same until 2023, subject to funding. An Agriculture (Wales) Act is intended to be introduced in 2024 with plans for a Sustainable Farming Scheme to replace BPS. DAERA have yet to announce their long-term intentions for BPS in Northern Ireland, however the budget for 2022 will increase pushing the value of payments up by 6.29%. For further information on entitlements in the devolved nations please use the following links:

  • Scotland – here
  • Wales – here
  • Northern Ireland – here

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.

information

If you sell entitlements through us, you will need to authorise us on the relevant paying agency’s online system. This is a simple process, details of which can be found here for the RPA online system. For information on authorising us on the RPID, RPW and DAERA online systems please contact Alasdair Squires (email).

Please follow this link for UK Entitlement Trading Updates. If you would like to receive our most up-to-date market information and news, please send an email to Kathy Dean to be added to the mailing list.

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, 2016 BPS English Entitlement Trading graphs, 2016, 2017, 2018, 2019 and 2020 UK Entitlement Trading Market Reports.  If you would like a formal valuation of either your entitlements or naked acres, please contact us.

  • Historical SPS entitlement graphs 2006-14 – here
  • Historical naked acre graphs 2006-14 – here
  • BPS entitlements trade graphs for 2015 – here
  • UK BPS Regional Comparison Fact Sheet 2016 – here
  • BPS English Entitlement Trading Graphs – 2016 – here
  • 2016 UK Entitlement Trading Market Report – here
  • 2017 UK Entitlement Trading Market Report – here
  • 2018 UK Entitlement Trading Market Report – here
  • 2019 UK Entitlement Trading Market Report – here
  • 2020 TCS Brokerage UK Market Report – here
Hugh Townsend

Hugh Townsend
FRICS. FCIArb. FAAV.

01392 823935
htownsend@townsendcharteredsurveyors.co.uk