Demand to lease entitlements, while sales running at lower levels
There is demand on leased land and entitlements in this country and trade is booming in both.
Mark McConnell, of Mark McConnell Auctioneers Limited, based in Stranorlar, Co. Donegal, spoke to AgriLand ahead of the deadline (May 15) for basic payment applications and the leasing and selling of entitlements.
“This year, there is a lot of movement in leasing out. There is a lot of people short ground; getting land is a serious problem,” he explained.
Mark stated that many people who have not managed to secure land must lease out their entitlements this year or they will lose them. If a farmer does not use their entitlements over a two-year period, they will lose those entitlements.
Commenting on the sale of entitlements, Mark outlined that the number of entitlements being sold is currently running at low levels.
There’s very little selling going on. They’re looking at up to 3.2 times their value. There’s a risk element involved.
Mark stated that there is a lot of transfers and changing over of herd numbers.
“There are a lot of young people taking over herd numbers. There’s a lot of inter-family trading as well.”
Mark concluded by outlining that some people are leasing out low-value entitlements and renting high-value entitlements. He was also concerned that some low-value entitlements may not be leased out as the deadline draws near.