Entitlement Trading – Don’t Panic

Those who wish to transfer entitlements before next year’s BPS claim do not need to panic about doing it before the 21^st October.  The RPA deadline of the 21^st for receiving RLE1 forms is well-known, and we have had a number of calls worrying that this is the last chance to get entitlements in the right place.

The deadline is only for the transfer of SPS entitlements.  There will then be a closed period so that the RPA has a ‘stable’ entitlement register to roll them into the Basic Payment Scheme as at 1^st January 2015.  However, once this has been done, a new trading window will open for ‘BPS entitlements’ sometime in the New Year.  This gives farmers another chance to transfer if they wish.  At that point trading will not be via a RLE1 form – it will all be online through the CAPIS system.  The transfer period may last right throughto the 15^th May, although this is not yet confirmed.

Also widely known is that excess entitlements will be stripped-away in 2015.  This will not happen on the 1^st January when entitlements are rolled-forwards.  Therefore, any excess can still be traded up to the point of claim (when they will be removed) as at 15^th May.  The same applies to those with a claim of less than 5 Ha.  Their entitlements will be rolled-over for potential trading in the New Year.  The only benefit for these people in trading before the 21^st October is if they are not going to be claimants under the BPS.  Selling now would mean they don’t have to go through the process of registering on the CAPIS system to trade their entitlements later on.