With the value of entitlements going down would it be good time to buy them?
Or rent them?
After getting some great information all ready here from two people but I’m just wondering has anybody here leased entitlements yet for the year ahead and how much are they costing Andy what are you getting back?
I've entitlements leased at 50% of their value.
I'm getting €120 for entitlements worth €240 so the farmer will have €120 as well.
The only figure you need consider is the BISS figure, the farmer can get another €100 between CRISS and ECO on those entitlements if his farm qualifies, but I'm not entitled to any of that.
Farmer only need one entitlement to draw total Criss payment. He dose not need any entitlements to draw Eco
Is your BISS value alone €240.
They must have been very high value historically.
How much land is needed per entitlement?
A hectare
Yea I think it was near 700 at one stage,
As a drystock farmer in the 1990s you were at nothing if you didn't maximise the subsidies
Someone wilL pick up a handy four thousand from my entitlement before the end of the year without ever considering CRISS or ECO
You would imagine that the value should be a bit higher than 50% , its a handy few pound for the farmer. I would have thought there would be a bit more competition for them . Maybe it is because of all the kite flying over the last few years from the IFA etc, farmers now don't understand the new entitlements regime.
Remember you have to pay up front. As well.ypumoau auctioneer fees. Auctioneer's usually charge 4-5%vat for these kind of actions.
So a leasee will receive about 106 of the payment after stumping up 127 6-8 months later. For twice the money you could buy low value entitlements of 100 euro and collect 600 euro in BISS by 2027
I haven't needed an auctioneer so far .
Surely the vat is only charged on the commision
Yes it only on the commission so it adds about 1% to the commission charge.
Phoned around again this morning: best I could get was €154 for 2.5 times the value.
Not much talk of 2.1 or 2.2 times the value now, despite it being mentioned in the IFJ and on the phone by one agent a few weeks ago.
Yeah seems to be 2.5 times at the moment anyway but auctioneers/advisors are saying that alot of entitlements have to come available yet so that is when prices will drop I'd imagine.
5% commission on top of that 2.5 times I presume ?
You'll be a long time before you get money back on those, The guys leasing mine will have €120 back this year
Yes, will be year 3 before any return on them
Why is there such a demand for entitlements? I thought it might ease off this year
I got the last of my entitlements rented out today, I was beginning to worry with all the talk of buying being the best option for farmers.
I bite the bullet and bought mine this week too. Another job off the list.
I paid approx 2.5 times the value, including €100 commission + VAT.
Good price, I doubt if older farmers would have to pay CGT on them either, retirement relief etc
Can you lease them without an agent or solicitor ?
Farming Indo today saying that sales need to be signed of by a solicitor or peace commissioner
I checked with Portlaoise today and entitlement leases don't require to be signed off when done online
Leased mine out today, had to sign form in front of a Garda! Solicitor or peace commissioner were the other options. The Garda had no clue what the form was about.
Thanks
I had mine done online about a month but neither party had heard anything .
Once we send the code to the lessee or their adviser, It's their responsibility then.
A garda can stamp and sign that either
Got 35 low value ones today 101 euro x2.2 plus 5% comission
That is good value. You will have your money and commission back and a decent return by year three
If you don't bother giving the revenue commissioners a cut on the deal.
Yea will rise to €133 im told by yr 5 so averaging €116. The eco and Biss I'm hearing from teagasc will be an additional €108 approx so decent enough return taking both into account €224/HA
