Danish Farmers Under Pressure From Superlevy13 February 2013
DENMARK - With 2 years until quotas cease, some farmers in Denmark are coming under financial pressure on account of a combination of superlevy and changing banking conditions, write DairyCo.
According to the Danish Dairy Board (DDB), about 100 farmers (2.5 per cent of the total) are experiencing a tightening of available credit.
However, in an effort to alleviate concerns by producing more milk, farmers are in danger of going over quota.
One of the issues is that producers who have invested in modernising their facilities, obtained loans from banks that are based on the value of the land.
The value of land is now declining so the banks are looking to limit their losses and not extending credit lines.
Denmark has incurred superlevy in 2009/10 and 2010/11 although were just under quota limits in 2011/12.
TheCattleSite News Desk