Ian Hope, Partner with Galbraith, said: "We are experiencing considerable interest from farmers keen to buy whose land is not fully covered with entitlement at present."
"Typical sale values to date have been up to 1.2 times the face value for 300 euro entitlement. However, lower multipliers are experienced for sub 150 euro entitlement. In many respects the bar has already been set by the trading levels we have been involved in to date."
Colin Stewart, Partner with Galbraith, also comments: "Although the detail of the new basic payment scheme has yet to be decided, there is the distinct possibility that the historic entitlement which will be held on 31st December this year will be the measure which determines the amount of the historic element to be phased out.
"What is clear is that the capital value of current entitlements is directly linked to the perception that a transition to an area based payment is likely as a means to mitigate the significant redistribution of funds within sectors and within geographic regions. The rationale behind this is to allow farmers time to adjust to the new level of direct payments.
"As is common knowledge the trading in entitlement followed quota trading and is an established way for farmers to adapt and change their businesses. The vast majority of trading is between farmers and provides flexibility."
The 2014 Single Farm Payment trading period closes on 2nd April for the 2014 claim and CKD Galbraith's experts are best placed to offer advice to any interested parties. The Scottish Government's consultation on future CAP Direct Payments in Scotland is open for comment and closes on 17th March 2014 and all interested parties should contribute to this. Colin Stewart advises that the consultation document which is an online consultation is particularly informative and gives a clear steer as to what the Government are thinking for the new scheme.
For SFP entitlement trading enquiries please contact our Scotland offices.