The level of borrowings within farm businesses in NI has moved over the £1bn mark, having continued to increase in the first half of 2016, according to figures released by the British Bankers’ Association.

The agriculture, forestry and hunting sector in NI had £1,018m borrowed in the first two quarters in 2016, up by 2% from £998m borrowed in the final quarter of last year. It is thought that the increase is mainly down to extensions to overdrafts, principally in the dairy sector.

The figures for total borrowings include loans and overdrafts. However, merchant credit and asset finance is not included.

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Deposits

As well as increased borrowings, financial pressure across farming sectors has also seen deposits in banks from agricultural businesses reduce by 11% over the first half of 2016. Figures indicate that agriculture sector deposits in banks in NI were worth £326m in the first half of 2016, down from £366m in the final quarter last year.