English Non-SDA Basic Payment Scheme (BPS) entitlements are trading at about £240 – £250 each plus VAT, say brokers.
Farmers did not have to wait for entitlement statements before trading, as they could be traded on the back of BPS applications, said George Paton of Webb Paton.
The market is well up from the £100 or so at which entitlements began to be valued, because of the number available being almost equal to the land available following the 2015 entitlement base year.
“Those selling entitlements will be those who are subject to road schemes, rail schemes, development land and solar parks,” said Mr Paton.
“Farmers who have had pipelines, cables, easements, wayleaves and temporary construction compounds through their land in 2015 will be in the market to buy in 2016 as they were unable to establish these entitlements in the base year.”
Such farmers should be claiming, as part of their compensation claim, their loss of BPS payments from utility companies who have entered their land, said Mr Paton.
“Anybody who has bought or rented in new land is also in the market for entitlements.” Mr Paton felt the market could go higher and said that more entitlements were needed.