Entitlements

onrail

Can anyone explain to me why someone would buy, sell or lease entitlements? Never really understood why there is a trade for them

Bass Reeves

https://www.boards.ie/discussion/comment/122045745#Comment_122045745

Convergence is nearly complete at present. At the end of the last csp tge highest value entitlements were 700 euro lowest was 150.

At present highest value BISS is about 450 add ECO and CRISS and you are at 560 approx. Lowest value is about 100 add ECO and CRISS and you are about 210 eeuro. Without CRISS you are at 520 and 170 and they are converging further over the next three years

https://www.boards.ie/discussion/comment/122045770#Comment_122045770

If you have naked land it has been a very successful investment over the last 20 years as long as you.know when and what to buy.

Hyland17

https://www.boards.ie/discussion/comment/122045900#Comment_122045900

Ya I know they are converging at the minute but nothing is set in stone for the next round of CAP. Could the higher rates be brought down more and the lower ones increased? If farmers keep dropping out like they are currently and younger farmers are nailed with high rates for rent and nothing to show when lease is finished its very hard to know where farming will stand in a few years. Young farmers giving most if not all of the CAP money away to landlords it doesn't make sense to keep going.

Bass Reeves

https://www.boards.ie/discussion/comment/122047810#Comment_122047810

Convergence is going to continue and will ve completed in the next CAP after 2027. The high rental is by young farmer and other farmers not being willing to walk away from rents that are too expensive. This is partly due to the structure of the young farmer scheme where you o lying get one bite of the cherry when making a national reserve claim.

Hyland17

https://www.boards.ie/discussion/comment/122047842#Comment_122047842

I know the young farmers top up is propping up the land rental prices at the minute, but its not all their fault. Have been in the same boat myself and found its farmers with existing land banks who is putting young lads out or driving it up to spite them. I rely on rented ground for my enterprise but at current prices its only making me a busy fool. Its not making financial sense to hand over most of your guaranteed money for the privilege of farming. Lads will bow out. Talking to a green cert teacher lately and he told me very few who have completed it are farming.Over the years only a handful are proactively farming. He would do shearing in the Summer so would be out and about to see.

Bass Reeves

https://www.boards.ie/discussion/comment/122048485#Comment_122048485

The truth is too many are doing the green cert. There is no entitlement to farm just like there is no entitlement to be a doctor, nurse or accountant. Even if you qualify in these profession's there is no guarantee that you will get a job in your chosen profession.

My young lad know a couple of lads that have started using the young farmer scheme and do not have the business acumen to run a farming business. Paying too much for rent is only part of there issue, not know what cattle to buy is another failing

Qprmeath

I’ve just sold a small amount of entitlements. I was told I would get twice their value. So I’ll receive twice their value or is there anything else deducted?

I had them leased out and originally I just thought I get twice that figure which is why I’m looking for clarification.

Also how long does it generally take to get these type of transfers approved? They show as submitted on Agfood.

wrangler

https://www.boards.ie/discussion/comment/123508024#Comment_123508024

If you're not over 65 it'll be subject to Capital Gains Tax.

If you're over 65 you can sell assets of up to €500000 tax free.

I sold mine this year and the auctioneer told me it'd probably be approved by August

Qprmeath

https://www.boards.ie/discussion/comment/123508176#Comment_123508176

Bought entitlements about 15 years ago and certain I’d paid auctioneer on the day. I presume I won’t get paid til department approval comes through?

StoutPost

The high rents talk. The market is what it is. The poster that said it's down to an inability to walk away is correct. There's no reward in life for doubling down on stupid. If figures don't work for the business then that's the moral of the tale. It's like an auction, you either go with a budget that you stick to, or someone with deeper pockets will introduce you to the deep end. There would be sfa sympathy for the argument anywhere outside the forum. It's the same for stock, houses, land, grandfather clocks or whatever else you may be into. No one is owed a living.

wrangler

https://www.boards.ie/discussion/comment/123508625#Comment_123508625

Yea, auctioneer holds the money

older by the day

https://www.boards.ie/discussion/comment/123508792#Comment_123508792

Well personally I would like to see a few young lads starting farming, being able to rent some land, and still make a profit.

Settling down in an area, filling the schools, keeping the villages open and the local agri branch's, marts ect.

There are greedy companies/farmers out there and they would fuuuck their mothers over, on account of half an acre of briars. A bad price year, they would pay no one, contractor, vet,ect.

Now I'm sure your comment was a throwaway remark. Because I'd hate to think we were chatting to one of them dicks.

Lime Tree Farm

https://www.boards.ie/discussion/comment/123510311#Comment_123510311

An old saying 'he'd smother the mother for 4 acres'

StoutPost

https://www.boards.ie/discussion/comment/123510311#Comment_123510311

🙄 No, it wasn't throw away at all, and for the record I lease land in not out. No one owes us a living. I've been a seller at auction a few times where lads came to me afterwards whinging that what I was selling sold for too much money. If that's the case they ought to stick to buy it now on Ebay.

StoutPost

https://www.boards.ie/discussion/comment/123510546#Comment_123510546

She's strugglin 😶

Lime Tree Farm

https://www.boards.ie/discussion/comment/123511690#Comment_123511690

I wasn't referring to anyone, just that post brought an old saying back to mind in reference to fellows greedy for land.

StoutPost

https://www.boards.ie/discussion/comment/123515441#Comment_123515441

I know, I was just kidding 👍️