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Abstract

The gross income of farmers has been stagnant since 1974 although the volume of their debts has been growing. An analysis of the debt burden has been conducted with respect to its impact on income and areas with debt income ratio clearly above normal have been delineated. According to RICA such areas include farms of small economic size and also, if at a lower rate, the most indebted farms of medium economic size. Moreover, before 1974 increases in debt volume were used to finance development ; after that date deficit financing seems to have emerged.

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