BPS entitlement values higher than in 2021

Brokers are reporting prices for non-severely disadvantaged area (SDA) basic payment entitlements are currently ranging from £150 to £200/unit.

Hugh Townsend, of Townsend Chartered Surveyors, said prices were higher than at the same point in 2021, with deals for non-SDA entitlements in England being struck at £160 to £200/unit plus VAT, depending on lot size.

This compares with £110 to £140/unit 12 months ago.

Values were also strong for Region 1 entitlements in Scotland with latest prices exceeding £170/unit, compared with £150/unit in 2021.

See also: BPS entitlement trade sees demand outstripping supply

Mr Townsend said demand was outstripping supply, with several of those in the market to buy looking for a relatively large number of entitlements (60 -100).

Buyers were being influenced by the prospect of payments being delinked and, given the other uncertainties currently facing farmers, there was an appeal to maximising claims for what are secure payments from government, he said.

Ian Potter, of Ian Potter Associates, said mid-March was still too early for there to be many buyers or sellers in the market.

But the deals he had struck so far were at the £150 to £160/unit mark, for non-SDA entitlements.

“It is quiet – people have got other priorities at the moment. Everyone is preoccupied with increasing costs,” he said.