REFERENCE DATA TRADING 2024
March/April 2024
Sellers of reference amount initially were asking 75% of the face value (Reference Amount) for transfers however the market has settled down to trades of between 50% and 60% of the face value. The supplies are now running short as the 10th May deadline approaches and so prices may rise for the final weeks of trading. Sellers should be aware that to transfer Reference Data without land, at this late stage, they should first ensure that their RPA account remains “open”.
February 2024
The RPA has confirmed that the 2024 Reference data trading window has opened to enable on-line transfers of reference data until 10.5.2024. This will allow eligible businesses to increase their BPS de-linked reference amount by either buying or leasing Reference data from businesses unable or unwilling to claim it themselves.
Provisionally, the following reference data is for sale, Subject to Contract:
| CODE | REF. AMT (GBP) | STATUS |
|---|---|---|
| 24.022 | 5481.16 | SOLD |
| 24.048 | 1709.47 | SOLD |
| 24.047 | 698.76 | SOLD |
| 24.043 | 16221.75 | SOLD |
| 24.035 | 19768 | SOLD |
| 24.039 | 17426.3 | SOLD |
| 24.041 | 10128.49 | SOLD |
| 24.06 | 27649.82 | SOLD |
| 1011 | 875 | SOLD |
| 1012 | 7100 | SOLD |
| 23.111 | 7458 | SOLD |
| 21.002 | 420 | SOLD |
| 22.021 | 397 | SOLD |
| 1013 | 544 | SOLD |
| 22.146 | 825 | SOLD |
December 2023
BPS Entitlement trading ended on 15th May 2023 and the need to match land with entitlements to generate BPS payments ends on 31st December 2023. BPS payments however will continue from 2024 to 2027 but will be delinked from eligible land and from the need to hold BPS entitlements. In order to claim these delinked payments the claimant must have claimed BPS in 2023 and hold a so-called "reference amount". These reference amounts were sent to most eligible claimants in November 2023 together with a confirmation that in most cases the claimant can transfer the reference data (3 x the reference amount) to another farming business.
A sale of reference data may suit a person or business who for some reason will not in the future be able to claim delinked payments every year or who would prefer to receive a lump sum rather than receive a larger amount but spread over four years. Our initial estimate of the reference amount values is 75% of the "face value" of the reference amount (which is 25% of the "reference data").
A sale of reference data may suit a person or business who for some reason will not in the future be able to claim delinked payments every year or who would prefer to receive a lump sum rather than receive a larger amount but spread over four years. Our initial estimate of the reference amount values is 75% of the "face value" of the reference amount (which is 25% of the "reference data").
The RPA has yet to announce the mechanism for transferring the reference data but we know that the first transfer window will be between 15th February and 10th May 2024. The transfer rules are hedged about with numerous restrictions but it appears that transfers of reference amounts without land will mainly involve transferors with reference amounts of less than £30,000. Transferors with more than £30,000 reference amount can transfer only if there has been an equivalent historic land transfer. If you are interested in buying or selling reference amounts please contact Mark Dyson who will be able to update you on the latest information from the RPA.
HISTORIC ENTITLEMENT MARKET INFORMATION
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February 2023 -
The Entitlement transfer window opened on time at the beginning of the month, with fairly busy trading.
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16th May 2022
Trading for English SDA and Moorland remained strong until the deadline at £200/ha and £35/ha + VAT. However an unexpected surplus of English Non SDA Entitlements at the very end of the trading season created a last minute buyer's market for a few people and lower prices were only able to be achieved for the last few trades. Average prices across the year were as follows:
Trading for English SDA and Moorland remained strong until the deadline at £200/ha and £35/ha + VAT. However an unexpected surplus of English Non SDA Entitlements at the very end of the trading season created a last minute buyer's market for a few people and lower prices were only able to be achieved for the last few trades. Average prices across the year were as follows:
English SDA £180/ha + VAT,
English Moorland £35/ha + VAT
English Non SDA £175/ha + VAT
May 2022
Prices for Non SDA entitlements rose to £200 + VAT at the beginning of the month but additional last minute supplies has reduced the market price somewhat. SDA entitlements remain in short supply and are priced at £185/ha + VAT. There is a plentiful supply of Moorland entitlements at £30-£35/ha + VAT.
Trading from the office will likley continue through to the 16th May (Monday RPA deadline) as usual.
April 2022
Demand is outstripping supply leading to an unusually strong market for Non SDA entitlements. Also SDA entitlements in short supply but plenty of Moorland entitlements are available.
March 2022
Supplies of all types of entitlements somewhat restricted this year due to potential retirees retaining surplus entitlements to surrender under the Lump Sum Exit Scheme. Prices have moved up for Non SDA from £150/ha to £170/ha + VAT, with SDA entitlements remaining at £175/ha + VAT and Moorland entitlements trading around £35/ha + VAT
February 2022
The RPA opened the trading window at the beginning of this month and we have all categories of English entitlements for sale and lease. The deadline for 2022 entitlement transfers is 16th May 2022.
The trading will start for the 2022 season early in the new year with the RPA opening the transfer window in February. As ever, the prices will depend more on supply and demand than on the payment yield (which will reduce in 2022 by the progressive reduction rates of between 20%- 40%). However a limited amount of entitlements will be removed from use by the RPA's proposed Lump Sum Exit scheme,(reportedly unlikely to be popular) and this may stimulate slightly more demand. We therefore anticipate prices of between £150/ha-£200/ha+VAT for Non SDA and SDA entitlements, and around £40/ha+VAT for Moorland entitlements.
