Farming sector is financially sound, says report’

The financial structure of the farming sector is sound, according to a new report published yesterday.

Research by Teagasc found the average debt on farms is €24,000, about half of the European average. The study concludes investment of €1.5bn would be required if milk output is to increase by 50% over the next five years as set out in the Food Harvest 2020 report.

Existing dairy farmers, who are expected to undertake the bulk of this investment, are urged to engage in rigorous financial planning to protect themselves in times of low milk prices.