A sharp fall in the value of entitlements under the new CAP is fuelling a spike in interest in the sale of entitlements.
The value of entitlements has fallen by 40% to 45% in 2023.
This has occurred through cuts of 25% to fund eco schemes, 10% to fund the Complementary Redistributive Income Support for Sustainability (CRISS or front loading) and 3% to fund the new young farmer scheme.
Further reductions on the remaining entitlement value - the core Basic Income Support for Sustainability (BISS) - apply to values above the national average figure.
This loss in value is making it less attractive to lease entitlements, while a two-year amnesty on the 20% clawback rule is encouraging more owners of entitlements to consider selling over leasing.
Sale values are averaging from 2.2 times to 2.5 times their worth.
Leasing values are anywhere from 35% to 40% returned to the owner for low-value entitlements, to 50% to 60% for high-value entitlements.
In recent years, over 14,000 farmers have traded entitlements.
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