Thursday 11 February 2016

Trading Basic Payment Scheme Entitlements.

Our clients have a large requirement for BPS entitlements both to purchase and to lease. If you have surplus entitlements we can connect you with a buyer. We will collect all payments from the buyer before any transaction is allowed to proceed. These are held in a client account until the transaction is completed and when the transfer is confirmed by the Dept. of Agriculture, the funds are forwarded to the seller. This system is safe and secure and protects the interest of both parties. 

Why should you consider selling or leasing entitlements. Lets look at three good reasons. 

1) Investing in Higher Value Entitlements. You wish to invest in higher value entitlements on your own farm. As you need 1 Ha of eligible land for watch entitlement your existing lower value entitlemnts are surplus to your requirements. If you do not use them for two years they will be lost to the National Reserve. The solution is too lease in higher value entitlements and lease out your own lower value ones. 

2) Rented Land, No Longer Available. As there is no provision for stacking of entitlements and you have a land rental agreement that is coming to an end. Firstly you want to secure your entitlements for the future and second you want to get an income from those entitlements in 2016. If you lease them out you get some income from them and they will revert to you at the end of the lease. They are not lost to the National Reserve and if your land area increases in the future you can use them again yourself. 

3) Reduction in Eligible Area. You have sold land and no longer have 1 Ha for each entitlement. You are no longer able to draw down payments on all of your entitlements as you do not have the land to match them. By selling or leasing them out you are generating an income from what would otherwise be lost. 

Remember this is the first year that entitlements can be leased without land. The option of stacking entitlements that existed in the past is no longer available. If entitlements are not matched with land they risk being lost to the National Reserve. 

For further information, please contact us at or call Fergal Monaghan at (087) 2356668.

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