Uncertainty about the value of Basic Payment Scheme (BPS) entitlements over the coming years has meant most farmers with new land to claim on in 2023 are choosing to lease entitlements for one year.

The current plan from DAERA is for 17% to be taken off the value of BPS entitlements in 2024 to fund new headage payments for suckler cows and beef cattle. In subsequent years, more money is set to come off to fund a new “Farming With Nature” package.

However, amid ongoing political stalemate at Stormont, it is unclear if the first major change will happen next year at all, and there remains a possibility that the reforms will be delayed.

For anyone considering either buying or leasing entitlements to claim BPS on new land in 2023, the advice from Omagh-based auctioneer Roy McCracken is to lease entitlements for one year.

“Our attitude is ‘wait and see’. There is a considerable amount of money to come off entitlements, so why would you buy an entitlement when you don’t know what the value of it will be next year and the year after?” he said.

Although there is a lack of clarity about entitlement values going forward, McCracken points out that there is certainty around the use of entitlements in future years.

DAERA guidance states that current BPS entitlements will be carried forward to form the basis of a new scheme to be known as the Farm Sustainability Payment. The new scheme will also be area-based, although payment rates will be lower than the current BPS.

“We know entitlements are going to be used in the new system. We know they will be able to be traded by both lease and sale,” McCracken said.

It means farmers with new land do not have to buy BPS entitlements now to allow them to claim the upcoming Farm Sustainability Payment on that land in the future.

“You won’t have to own an entitlement to benefit from the new scheme. Our advice is to wait until we see exactly what is coming before diving in and buying entitlements,” McCracken added.