Entitlement trade busier by the day

Entitlement trading is picking up day by day as luckier farmers receive their single farm payments.

George Paton of broker Webb Paton said there were effectively five banking days to go to the trading deadline from Friday, 24 March.

“About 90% of those who have bought entitlements have received their single payments.

“We are averaging a multiple of 1.79 times for 190-350/ha entitlements, with 90/ha units at 2.3 times. Basic, no-history, entitlements of 19.23/ha are trading on a multiple of four.”

Tony Rimmer of Carver Knowles reckoned 10ha blocks of 90/ha entitlements were trading typically at about 1.8 times their value.

“And for entitlements with milk quota in their history, the multiple rises to about 1.9 times, as Dairy Premium is included in the payment and will increase into 2007.”

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