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| Using and Trading Your Entitlements |
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In simple terms, an Entitlement is a capital asset which gives its owner the right to claim the Single Payment Scheme subsidy provided he or she is an active farmer. They can be bought, leased or gifted and come in different varieties, although most are either normal Entitlements or Set aside Entitlements.
Farmers can transfer their Entitlements, either with or without land and transfers can take place at any time of the year but must be notified to the Rural Payments Agency at least six weeks before they come into affect. For Example, in order for the subsidy to be claimed in the May 2008 claim, the transfer form must be received by the Rural Payments Agency (RPA) by the 2nd April 2008. Entitlements can only be transferred within the same region (i.e. England Non Severely Disadvantaged Area) and must be accompanied by a correct RLE1 transfer form.
Examples where transfers of Entitlements occur are: Bruton Knowles have set up a National Entitlement Transfer Database and has a large number of Entitlements for sale to make the necessary claim in 2008. Values vary depending on the rate of return and the type of Entitlements. There has been a steady number of sales throughout the year and it is anticipated that in February the volume of sales will increase significantly as many vendors are disposing of Entitlements due to the 3 year “use it or lose it” rule. The Entitlements for sale can be viewed at www.brutonknowles.co.uk. The detail surrounding Entitlement transfers and the Single Payment Scheme are complex and purchasers of Entitlements need to be aware of the responsibilities of maintaining land on which subsidies are claimed. Should you require advice on the Scheme and transfers please contact Gareth Lay on 01452 880190. If you have surplus Entitlements which you wish to sell or would like to purchase, please contact Antonia Hall on 01452 880044. |
