If you are considering trading entitlements under the Basic Payment Scheme (BPS), the online Rural Payments Agency (RPA) transfer facility is expected to become available from 31st January until 15th May 2020, says H&H Land & Estates.
The leading Chartered Surveyors, Agricultural Land Agents and Valuers for the North of England and Southern Scotland, is encouraging all claimants to check their full allocation of entitlements to match the eligible area as a significant proportion of claimants are short of entitlements and therefore lose out on income they are entitled to.
Emma Smith, Chartered Surveyor for H&H Land & Estates, explains that they currently have non-SDA, SDA and Moorland entitlements readily available to sell to those looking to invest or expand their portfolio:
“We trade entitlements between now right up until 15th May 2020. Most enquiries from purchasers are in April when the online window to submit BPS applications opens. All regions are an excellent investment with money being recovered in the first claim year once purchased, return on investment is very quick.”
H&H Land & Estates charge a set commission, subject to a minimum fee, which does not change over the trading season and is significantly less than some other agents.
As an example of return on investment, last year 1 hectare of Non-SDA land generated an income of approximately £230 against an average price of £120+VAT to purchase the entitlement, demonstrating a strong profit.
Last year, H&H Land & Estates traded predominately Non-SDA entitlements with an average value of £120+VAT. Trading prices ranged between £90+VAT – £140+VAT.
SDA entitlements averaged £160+VAT however there was a noticeable decrease in quantity transactions compared to the previous year. Moorland entitlements averaged £35+VAT with a surplus of entitlements on the market with other agents.
Emma concluded: “We have a variety of opportunities to sell for any farmer considering expanding their portfolio. The figures are evidence that this is a worthwhile investment for rural landowners looking for a secondary source of income, as well as additional assets.”
For further information on BPS trading entitlements, Emma Smith can be contacted through H&H Land & Estates Carlisle office on 01228 406260 where she will be able to provide expert advice, or refer you to one of its other offices in Carlisle, Kendal, Durham, Penrith, Keswick, Cockermouth, Grange-over-Sands or Newtown St Boswells.