Currency and CAP issues limit entitlement trade

Early trade in English Single Farm Payment entitlements is busy, but currency and CAP reforms are holding back buying and selling decisions. 

English non-SDA or “normal” area entitlements are worth about £210/ha this week, said George Paton of Webb Paton, who is doing about 15 deals a day.

All deals must be complete by 2 April and the RPA is keen to encourage trade to be brought forward from the last-minute rush usually seen in the run-up to deadline. 

If CAP reform is not agreed in time for the 2014 claim, the purchase of entitlements now would give buyers access to three claims (2012, 2013 and 2014) for little more than the value of one year’s sfp. Any announcement on this would be certain to move the market up, said Mr Paton.

While the English market usually sees buyers’ and sellers’ volumes largely equally matched, this is not the case in Scotland, where there is always greater demand for entitlements than the number available.

Scottish entitlements are changing hands in a thin market at 1.6 to 1.8 times face value for a 300-400 euro entitlement. “There is a bit more demand than we have seen historically at this time of year,” says Giles Lane, chartered surveyor at C&D Property, Cumbria.