EU grants extension to transfer entitlements.

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Many farmers have been battling to beat the 2 April deadline for transferring 2006 single farm payment entitlements, and some prices are said to have firmed.

But it seems producers may have longer to do business, as DEFRA was understood to have secured an extension to the trading period as Farmers Weekly went to press.

Sources could not say how much longer the European Commission had granted for transfers, but broker Ian Potter said he also wanted to see the charges for late submission of SP5 forms waived, allowing farmers to hand them in up to 10 June.

George Paton of broker Webb Paton has been grappling with a flurry of transfer enquiries from across England. "We desperately need an extension of the 2 April deadline," he said.

Apart from high-value entitlements, prices had firmed over the week, he said. Those that earned £190-£300/ha in SFP last year were the easiest to sell at multiples of 1.8. Low-value area-only entitlements were also selling well at a multiple of 2.5 times the 2005 pay-out.

Enquiries from growers needing fruit, vegetable and potato entitlements had also been numerous this week, he said, selling for a multiple of 2.2.

Mr Potter said there had not been many transfers this week, but his new entitlement release scheme had met a "great response". Launched last Friday (24 March), the scheme allows farmers to mortgage part of their single farm payment income in exchange for an up-front loan.

"Tenant farmers have said they've never found it so easy to raise capital," he added.

* For the latest news on entitlements, visit fwi.co.uk

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Edited by Robert Harris, 020 8652 4934