Trading of single payment entitlements is hotting up, so Farmers Weekly will now be including information on entitlement values alongside milk quota prices.
With the 28 March deadline for entitlement transfers looming (early due to the timing of Easter), demand from buyers was starting to pick up, said Ashley Taylor, associate chartered surveyor at Townsends.
“In recent weeks there has been a massive surplus of non-SDA entitlements, and values have dropped by about £20/ha, to £200-210/ha – about £30/ha below the same time last year,” he said. “But people are now starting to fill in their SP5 forms, so we are seeing more purchasers coming into the market, which is slowly reducing that surplus.”
At current exchange rates, the non-SDA payment would be worth about £20/ha more than last year (before modulation), but the poor weather meant many buyers were short on capital, he added. “There is huge demand for moorland entitlements, but not many available.”
In Wales, Scotland and Northern Ireland, where payments were based on historic claims, demand centred on mid- to high-value entitlements, said Mr Taylor.