Farmers carry average debt of
IRISH farmers are in
debt to the tune of €24,000 on average, a report out
today shows. This is about half the European average
The research also shows that larger dairy farms
managed by farmers whose spouses earn outside the
home, are most likely to invest in their holdings.
The report by Teagasc, sponsored by Bank of Ireland,
also looked at the likely investment on dairy farms
following the removal of the milk quota this April.
Irish farmers have €24K debt on
Agriculture Simon Coveney said agriculture is "one
of the cornerstones of the Irish economic recovery".
"This report shows that Irish farmers have prudently
managed their businesses over recent years. This
kind of sound management is no surprise and can both
mitigate the worst impacts of price volatility and
help to position farmers to invest and expand to
exploit the opportunities that will arise from the
abolition of milk quotas.”
The study found that investment of about €1.5
billion would be required if milk output is to
increase by 50 percent over the next five years as
set out in the Food Harvest 20-20 report. It urged
farmers to "engage in rigorous financial planning"
to protect themselves in times of low milk prices.
The Teagasc/Bank of Ireland report also looked at
the pig sector and concluded that the Irish pig
industry continues to improve its efficiency levels
despite tight financial margins.