Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Leasing entitlements

  • 01-04-2017 1:29am
    #1
    murrak123
    Registered Users, Registered Users 2 Posts: 74 ✭✭


    Is it possible to lease out entitlments for 2 years in a row or is it a case of use them or lose them.


Comments

  • #2
    Farrell
    Registered Users, Registered Users 2 Posts: 2,262 ✭✭✭Farrell


    murrak123 wrote: »
    Is it possible to lease out entitlments for 2 years in a row or is it a case of use them or lose them.

    Think you lease 1 year but use the second.
    Your local Agri Advisor might know more.
    There's a market if you wish to sell.
    We're the opposite, rented some last year & hopefully of buying this time


  • #3
    Grueller
    Registered Users, Registered Users 2 Posts: 5,344 ✭✭✭Grueller


    When you are leasing entitlements is greening included in the value? Eg €300 entitlement trading at 60% is €180. Does it pay out €300 or €300 plus greening?
    Thanks


  • #4
    wrangler
    Registered Users, Registered Users 2 Posts: 11,333 ✭✭✭✭wrangler


    murrak123 wrote: »
    Is it possible to lease out entitlments for 2 years in a row or is it a case of use them or lose them.

    Once they're leased, they're considered as being used, you won't lose them if you lease them two years in a row.
    However the next CAP review is 2020 and it's very likely you'll have to be an active farmer to keep them.
    I've €25000 worth leased out and I fully expect that they're going to be taken off me in 2020, I'm not selling because I hope I'm wrong.
    Anyway between 20% going to the national reserve and 33% Capital Gains tax on a sale I'm actually better off leasing


  • #5
    wrangler
    Registered Users, Registered Users 2 Posts: 11,333 ✭✭✭✭wrangler


    Grueller wrote: »
    When you are leasing entitlements is greening included in the value? Eg €300 entitlement trading at 60% is €180. Does it pay out €300 or €300 plus greening?
    Thanks

    Yes a 300 enttilement is roughly €420 inc greening leased at 60% is €252


  • #6
    J.O. Farmer
    Registered Users, Registered Users 2 Posts: 2,537 ✭✭✭J.O. Farmer


    Grueller wrote: »
    When you are leasing entitlements is greening included in the value? Eg €300 entitlement trading at 60% is €180. Does it pay out €300 or €300 plus greening?
    Thanks

    The greening is added to the face value and 60% is on that value so as wrangled says a €300 euro entitlement is really €420 value that the 60% is calculated on.

    Rough rule of thumb person leasing in ends up with the greening as profit on the transaction or maybe a bit more depending on the percentage and fees. Higher value entitlements trade for closer to 100%.


  • Advertisement
Advertisement