What multiplier to use to value entitlements for sale?

jeffwode

As I am being forced to sell my entitlements, which I had leased to a neighbouring farmer last year, I need to determining a fair selling price. I note the Farmers Journal used a 2.3 multiplier in the worked example they used two weeks ago. Does anyone know what multiplier farmers are using to determine a sale or purchase price for entitlements? Any advice would be appreciated. Thanks.

niallf

Is this due to 100% of your entitlements being leased out last year? if so you dont have to sell. You could gift your entitlements and get them back at the end of the lease.......

jimmy G M

What value are the entitlements per hectare? Higher value entitlements are worth a higher multiple. €150 - €200 are worth in the region of 1.75x I believe

Username John

Was quoted
1.5 for 50 euro
2 for 240
And i thibk it was 2.4 for 300

poor farmer

1 x€100
2 x€200
2.5x300
3x 300+

rancher

niallf wrote: »

Is this due to 100% of your entitlements being leased out last year? if so you dont have to sell. You could gift your entitlements and get them back at the end of the lease.......

I think there's a tax implication to both parties in that situation, you'd need to check it out.

jeffwode

Thanks for all the advice. It's good to have some reference as a starting point for calculations.