‘Entitlement sales accounting for just 5% of the market’
Michael Guiry of Guiry Auctioneers in Waterford City is busy with the entitlements trade at the moment. His business is mainly in leasing entitlements and he estimates that the sale of entitlements is accounting for just 5% of the market, due to the 20% clawback.
“There’s very few selling; the 20% clawback is stopping that,” Michael explained.
Where entitlements are being sold, the figures are almost on a par or lower than AgriLand has quoted in recent weeks.
High-value entitlements – which may be up to €600 – are trading for 2.5 times their value, while low-value entitlements (starting at €150) are trading for two times their value.
Michael explained that it’s farmers that can’t get the land they were leasing last year that are leasing out their entitlements.
Low-value entitlements – which start at €150 – are leasing for 55% of the value of the entitlement. High-value entitlements, which may be as high as €600, are leasing for 70% of their value.
While there is no particular trend in where the entitlements are being sold, Michael stated: “We’d always sell more to Co. Cork.”
He has also noticed that dairy farmers are getting into the trade more this year. His business was mainly with beef farmers up until this.
Deadline drawing near
“It’s extremely busy. There’s only two weeks left [to trade entitlements this year], so it’s going to be extremely busy for the next few weeks,” Michael concluded.