Sharp rise in Danish farm debts.(DENMARK)

Agra Europe, June, 2006

Danish farmers increased their debt by 10% last year to a record high of Dkr244 billion (32.7bn [euro]), increasing their sensitivity to future interest rate rises, an industry group report said this week.

According to the report, 'Danish Agriculture,' a 1% increase in interest rates will cost Denmark's 60000 farmers Dkrl.4bn (188 million [euro]) more in payments.

"It is worrying. A very small increase in the rates could hurt farmers a lot," chairman of the Danish Pig Producers' Association Torben Poulsen told Reuters.

He sees a danger in rising interest costs because farm production and prices are stagnating. "The operating profit of the sector is around Dkr3bn (402m [euro]) a year, which doesn't at all compare with the debt," Poulsen said....

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