Interest payments eat into incomes

DAIRY farmers have led a borrowing splurge which has taken interest payments to more than 10% of Irish farm income.

Farmers’ bank loans have nearly doubled in five years, from €1.6 billion in 1995 to €3.1 billion in 2001.

“While dairy farms now account for less than 30% of farms, they contributed well over 50% of total new investment in 2001”, said Sean Regan, Chief Environment Adviser, at the Teagasc Dairy Conference in Killarney.