ENGLISH ENTITLEMENTS – TRADING UPDATE
The market currently is still not in full flow however there is steady trade at £125-140 plus VAT, depending on lot size. Non-VAT sales, if you have a non-VAT buyer, can achieve say 10% more. Therefore sellers who are still expecting to achieve sales at the £150-160 level are likely to have to adjust their expectations if they wish to agree a sale now, although as in previous years, the last five weeks of trading can see the price oscillate up and down.
The market remains steady, with a good supply available. Sales of good sized lots have recently been agreed at £180 plus VAT, or £200 with no VAT.
The market is unusually quiet, and purchasers looking for large amounts would be able to acquire these for £40-45 plus VAT.
The deadline for English transfer applications to be received by the RPA is 15th May 2019.
WELSH & NORTHERN IRISH ENTITLEMENTS – TRADING UPDATE
The market for Welsh entitlements remains quiet, with sales at £45-50 per entitlement. Read more…
The deadline for Welsh transfer applications to be received by the WAG is 30th April 2019.
The market is now in full flow and there is good trade with plenty of buyers and currently a good supply available. Read more…
The deadline for Northern Iris transfer applications to be received by DAERA is 2nd May 2019.
SCOTTISH ENTITLEMENT TRADING – SEASON SUMMARY
The deadline for submission of transfer applications for Scottish entitlements was 2nd April, and now the transfer application window is closed, we are reflecting on the Scottish trading period. The trading period started in early February, and sales were being agreed right up to the day before the 2nd April deadline. As a firm, for the 2019 season we are delighted to have almost doubled the number hectares traded of Region 1 and 2 entitlements compared with last year.
There was some general confusion in the market about whether the 30% siphon would be applied by the Scottish Government Rural Payments & Services upon transfer, with some buyers suggesting the price should drop as a result. However the Rural Payments & Inspection Division (RPID) confirmed in their online guidance that even though a siphon would be applied on transfer, before the 2019 BPS claim payment is run all Scottish entitlements within each region would “converge” to the same flat rate. The RPID 2019 entitlement transfer guidance available states:
2.7 If you transfer entitlements without land, we will apply a siphon and will reduce the value of the entitlements transferred. ….. Convergence will apply to the post siphon value to ensure all payment entitlements within a region are the same value in 2019.
Region 1 – better quality agricultural land
Most particularly in the last three weeks leading up to the deadline, there was steady supply and demand for Region 1 entitlements. Most lots sold were traded at £200 plus VAT, with occasional smaller sales achieving £210 plus VAT. Other agents reported that trade was reasonably busy, although not as busy as previous years, but that the sale price did hold firm at around £200 plus VAT (although some last minute sales were agreed at between £160-230 depending on lot sizes and whether the seller was VAT registered).
Region 2 – rough grazing land
There was strong early demand for Region 2 entitlements, and this firm sold nearly 800 in February, mostly at £35 plus VAT, but some also at £32.50 plus VAT. In March the demand seemed to dry up despite there being a good supply, however in the last few days before the deadline further large sales were agreed at £32.50 plus VAT. Other agents have reported a stronger supply than demand of Region 2 entitlements, but sales that were agreed were mostly around £30-35 plus VAT.
Region 3 – rough grazing land with an LFA grazing category A
There was unusually strong demand in this office for Region 3, with purchasers being prepared to pay up to £15 plus VAT per unit.