The primary goal of the article is to evaluate the effects of indebtedness on the profitability of agricultural farms located in less favoured areas (LFA), and the farms which are not located in the LFA. For evaluation of this situation there were used selected financial indicators, development of which was accounted in the period 2000-2005. The base of the data vere created, by aggregate data of corporate bodies. Data comes from the VU EPP database. Indebtedness of agricultural farms reaches in average 35 %. In accordance with an average Slovak company, which indebtedness is 75 %, and in accordance with direction value 50 % it is still under the tolerable value. Lower indebtedness of agricultural farms results from specific factors of agricultural basic industry. These factors are land and climatic conditions, seasonality of production, lower profit margin, and long cycle of production, which means distinction between production and sales phase that causes ups and downs in cash flows of the companies. The relationship between profitability and indebtedness shows non-linear development in the period 2000-2005.