Debts add to income pressures

FARMER indebtedness has rocketed over seven years, and borrowing capacity has been wiped out on many farms.

Latest figures show that indebtedness has gone from 65 to 126% of national farm income. From 1995 to 2001, Irish farmers' debts increased from €1.7 to €3 billion, a worrying liability farms as product prices now come under pressure.

Teagasc Specialist Advisor, Tom O'Dwyer has calculated that on a farm returning a net profit of €32,000, the borrowing capacity over seven years is €43,000, to fund a limited amount of farm development.