There is a scramble to complete deals for trading Farm Sustainability Transition Payment (FSTP) entitlements ahead of the transfer window closing on 15 May.

Agricultural consultants across NI state that the delayed start to the opening of the 2025 entitlement transfer service means the market has been busier than usual this year.

When compared to 2024, the window for trading entitlements opened a month later, although the deadline for transfers has also been pushed back by a fortnight this year.

According to Lurgan-based consultant Ciaran Kerr, there is “very strong” demand from farmers looking to buy entitlements for clean land to make an FSTP claim in 2025.

Another factor in the market is some farmers are hoping to secure extra entitlements now but not use them until next year when land eligibility rules are set to change.

The current plan within DAERA is that all land, except for the likes of laneways and farmyards, will be eligible for payment from 2026 onwards.

Omagh-based consultant Roy McCracken said it is difficult to advise farmers about entitlements for future years as entitlement values are likely to reduce further.

“Nobody really knows how much more will come off entitlements to fund new schemes and what the new land eligibility rules will be exactly. It is all very vague,” he said.

Scheme changes

The FSTP is effectively the follow on to the long-standing Basic Payment Scheme, with existing entitlements still used to form the basis of claims by NI farmers.

The value of all entitlements dropped by 6.5% this year, mainly to fund the new Suckler Cow Scheme. It follows a 9% cut last year to free up money for the Beef Carbon Reduction Scheme.

The new Farming With Nature agri environment scheme is to be launched shortly, although DAERA has said that capital funding direct from government will be used to fund the initial stages.

Agriculture Minister Andrew Muir has also made it clear that he wants to start designing a new sheep support scheme once Farming With Nature is rolled out.

Supply and demand

Roy McCracken said that there is currently a large supply of low value FSTP entitlements on the market.

He said entitlements that have values in the mid £200s can typically be bought at face value.

There is much stronger demand for higher value entitlements, especially those over £300, and so these entitlements are costing more than face value to buy.

Similarly, the cost of leasing high value entitlements can be up to half their value in some cases, but deals can be done for much less for lower value entitlements due to the large supply.

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