Entitlements, value of.

[Mixedupfarmer]

All of the land we have bought/rented since bps came in had entitlements included or we purchased them separately, they were of no use to the person selling the land

Most of the land we have taken on to rent since entitlements were established, we have bought entitlements else where as the previous tenants wanted more than they could be bought for on the open market.

 

[Yonlass]

Entitlements for Sale | Ian Potter Marketing Services Ltd

In the current climate, entitlements are one of a farmer's most important and valuable assets. They are, quite simply a significant source of revenue.

www.ipmsltd.co.uk

As said previously, I rang to see what they were worth, found out there was a flat rate of £500 to sell them, then did a direct deal without the fees.

 

[onthehoof]

Most of the land we have taken on to rent since entitlements were established, we have bought entitlements else where as the previous tenants wanted more than they could be bought for on the open market.

Who would they sell them to for more than the open market price, i guess there must be a big discrepancy between what people think they are worth and what they are actually worth. If a lot of folk are buying land but cant claim there must be a huge oversupply of entitlements vs demand, are these agents holding them and keeping prices artificially high

 

[Mixedupfarmer]

Who would they sell them to for more than the open market price, i guess there must be a big discrepancy between what people think they are worth and what they are actually worth. If a lot of folk are buying land but cant claim there must be a huge oversupply of entitlements vs demand, are these agents holding them and keeping prices artificially high

I know one larger block we took, the outgoing tenant lost them to the national reserve in the end as he couldn’t sell them at the price he wanted despite my best efforts to buy off him at the market price.

 

[Phil P]

Who would they sell them to for more than the open market price, i guess there must be a big discrepancy between what people think they are worth and what they are actually worth. If a lot of folk are buying land but cant claim there must be a huge oversupply of entitlements vs demand, are these agents holding them and keeping prices artificially high

But how long can the broker hold them for? I thought of they weren’t claimed for within a 2 year period they expire and can’t be used again!
so there may actually be more land then entitlements, this would hold the prices up.

 

[Al R]

I asked an agent a few weeks ago what’s the script with getting entitlements for some rented land and they said either buy at £10-15 less than what their worth per ha as their only value is 1 year effectively due to phasing out or as long as under 200acre you may well get them in 1 go from the National reserve, they said you may be lucky and get 90% from national reserve, over 3-400acre your far less likely to get in one hit from national reserve

 

[Hindsight]

But how long can the broker hold them for? I thought of they weren’t claimed for within a 2 year period they expire and can’t be used again!
so there may actually be more land then entitlements, this would hold the prices up.

A 'broker' cannot hold entitlements. Entitlements are 'held' by the farmer/claimant.

 

[Still Farming]

I'm intrigued as to why 15 years down the line since entitlements were introduced there is still bare land, is this because the former owner/ tenant sold the entitlements off separately?

Or never registered icas or claimed anything.
Plenty about like that.

 

[serf]

Townsends have got price up for above on newsletter if someone can post a link , other info on there too .

 

[serf]

BPS ENTITLEMENT TRADING UPDATE - 11.3.2021

ENGLISH

Following the opening of the RPA online transfer system we have had a busy few weeks with Non-SDA selling at between £135 and £150 plus VAT depending on lot size. We have vendors with lots ranging from 2.47 units to over 300 available including Non VAT lots which have been fetching up to £180.

In the last few days however, vendors have ‘broken ranks’ and some have been accepting £100 for good sized lots. Whether this will continue we will have to wait and see bearing in mind last year when prices ended up at £160-£200 by the deadline.

There also still remains the threat that more people will be delaying their retirement and holding on to their entitlements. This is in the hope of a £630 per hectare pay out next year from the Exit Support Scheme the RPA are talking about. This is clearly having an impact as Naked Acres demand is very high with letting now at £70 per acre. More wanted! SDA has started selling at £170 plus VAT whilst Moorland is available at £35/unit plus VAT.

 

[serf]

Some extract above with retirement values .