The latest Reserve Bank figures show farm debt levels are on the rise again.

The Reserve Bank reports that farming debt increased by $238 million during August alone and has increased each month, for the last four months, to stand at over $47 billion.

ASB Bank rural economist James Shortall told Country 99TV that the increased borrowing by farmers is a seasonal occurrence.

Mr Shortall says with dairy farmers increasing their supply they can also increase their borrowing.

Debt in the dairy sector has rocketed in the last decade in particular.

In 2001, the typical dairy farmer owned the banks $750,000 in 2011 that figure is $2.8 million.

Last week, Federated Farmers President and former banker Bruce Wills said it was essential the agricultural sector capped and reduced its debt levels.

Mr Wills says Kiwi farmers’ level of private debt in New Zealand are among the highest in the world.

"Listen we mustn’t forget that $47 billion, it’s still, in my view the elephant in the room when it comes to the farming community.

" It’s a level of debt that I don’t think is sustainable long-term in our farming community. And what we saw last week was international recognition of that and a warning for us to take heed and work hard to reduce this debt level.