Debt levels across NI farms remain stable and repayments are being made with no major issues, the head of agriculture at Ulster Bank has said.

Speaking to the Irish Farmers Journal, Cormac McKervey said the latest figures which run to the end of 2024 show total debt across NI agriculture stands at £966m.

The data, which is compiled by UK Finance, compares to £956m at the end of 2023 and the most recent peak of £1,035m back in 2022.

“Total debt levels are virtually unchanged over the year. In general, things are good at the minute in terms of day to day running of farms,” McKervey said.

“There is no real pressure in our loan book apart from some farmers who are down with TB and need an extra loan or overdraft extended,” he added.

The sound financial performance is reflected in deposits in farm bank accounts, with the total figure for NI standing at £648m at the end of 2024, up from £600m a year earlier.

“It’s good to see that farmers have a bit of breathing space between the good weather and decent prices across the different sectors.

“The only thing is arable farmers are just breaking even or not showing any great amount of profit, but apart from that, everything else is doing really well,” McKervey said.

Within the agricultural loan book, there has been a drop off in borrowings for new livestock sheds due to tight restrictions on planning for farm buildings.

However, McKervey said loans are still being taken for repairs and maintenance of existing sheds and finance to purchase farmland remains a key source of business for banks.

“Demand for land is through the roof and there are no signs of it easing off. High prices are being paid for relatively large farms. It seems to be the new normal,” he said.