Loan companies are preying on struggling Northern Ireland farmers who owe the banks more than £500 million, it was claimed tonight.
Income from the agriculture sector has now plunged so low that nearly all profits are being pumped back into paying off crippling debts.
Ulster Farmers Union President John Gilliland warned: "We are in a crisis here that nobody has even started to get their heads round."
Mr Gilliland claimed the spiralling debts of farmers who have borrowed heavily have left the banks feeling nervous.
"We owe at least #500 million and even though the main banks have been good there are other financial institutions out there who are less scrupulous.
"Several smaller organisations think they can make a pound or two out of our situation.
"They see a situation where they can lend money to people who have already been refused by the banks."
The UFU chief has now called for a radical rethink on how the industry operates in a bid to make it more profitable and stop a growing exodus.
Last year the number of farmers quitting almost doubled to 4%.
Many of those opting for other lines of work felt disillusioned by income levels which have slumped, Mr Gilliland said.
With debts of around #500 million even before feed and fertiliser companies bills are considered, around #50 million of interest is now built up every year.
"The total income of farming last year was #160 million, but this year we expect it will be down to around #60-70 million," he said.
"We are in an area we have never been before."
Sinn Fein Agriculture spokesman Gerry McHugh called for greater reassurances from banks that they are in it for the long haul.
The Fermanagh and South Tyrone MLA said the Northern Ireland Bankers Association had confirmed farmers' debt levels during a meeting with representatives.
He added that cattle disease had heightened the financial pressures on farmers.
"Our greatest concerns were at the response of the banks to both charging for persistent overdraft facilities and in particular the situation for farmer who are caught in a cashflow trap because of TB and Brucellosis," he said.
AFP