Buying Land

amacca

Looks like I might have the option of buying a bit of tillage land next to me.

Trying to do my sums here, I'm wondering if it is bought this year how do you go about claiming BPS/ANC on it or do you have to wait for a number of years etc?

Do your existing entitlements just get spread across more hectares and a lower payment per hectare or do you get more entitlements at the rate you are at on the new area....

Same with ANC if its designated as such, do you just apply for that and get it or are you locked out until next CAP?

Was also wondering if I should soil test? I haven't been paying much attention but I reckon its been cropped for the last 3 or 4 years, I'd probably only be interested in reseeding for grass, I'm wondering if its been depleted much....

_Brian

If there’s no entitlement coming with the land you can lease or buy some. They will be at whatever their face value is an and it varies hugely, I’ve seen them from €60/ha to €1000/ha, cost will be a multiple of face value.

Lime Tree Farm

Your present BPS is spread, ANC comes with the purchase. That's what happened in my case.

amacca

https://www.boards.ie/discussion/comment/120035240#Comment_120035240

And if you didn't go that route then can you wait until the next cap and apply to get whatever the standard entitlements would be?

or could you buy low value and wait for them to come up to an average price?

Its a long while since I bought any ground and I think I just applied myself under scottish derogation to put entitlements on it at the time so I have no experience of buying them.

amacca

https://www.boards.ie/discussion/comment/120035242#Comment_120035242

And will that mean they will gradually come up (or go down to) to an average value but you will still have no more or no less entitlements?

ie: If you had say 50 entitlements worth a hundred each (to make the numbers easy) on say 50 hectares that leaves you with 5k ........and then bought another 50 hectares...you would still just have fifty entitlements worth a hundred each .......or a hundred entitlements worth 50 each (which still leaves you at a total of 5k but would they then come up to this average value over the next 4-5 years with the flattening thing?

Sorry its like I've unwittingly come up with an agri tongue twister above!

Siamsa Sessions

Simple numbers re entitlements from here…

I had naked land in 2016. It was leased out til then and the tenant had been activating his own on the ground up to then.

I bought entitlements for approx 2.1 times the value. They were around €200 including greening so I’ll gain a little from convergence in this new CAP as they drift up to the national average between now and 2027. I think the national average is around €250-ish.

I’m happy I bought them and will be enquiring about more in Jan/Feb as I might have more ground to include in my SFP application next year.

To answer your question: I’m fairly sure you’d still have 50 entitlements worth the same value, and not 100 spread over 100 HA worth half the value each

Donald Trump

It would be no harm to soil test it anyway if reseeding even if you've been farming it for years yourself.

amacca

Cheers lads. At least I have a bit of a handle on it now...

Not completely green

Bass Reeves

@amacca

Next year there is a new payment system. Unlike previous CAP reorganization there is no change in entitlement valuing nor will you present payment be spread over all your land. You have to buy entitlements for the new land.

Presently the minimum value of entitlement is 150 euro and the max is 750/ HA. Under the new CAP over the next five years the minimum value will go to 200/unit with units converging towards 250/ HA.

However units are split in two parts. There is a greening element and a basic income element

Greening will be paid regardless of you have units or not. Greening is a flat rate from now on at around 70/ unit. There the new added value of any payment you purchase is after that greening payment of 70 ISH euro.

As higher value unit will reduce substantially in value especially as greening was previously a percentage of the unit value.

If you are buying units next year you need to really calculate the extra value that any payment will add to your system. As well you need to be able to calculate the way any new unit will increase/decrease in value