An offer of free seminars on managing debt has been made to the farmers as the dairy sector grapples with declining incomes and increasing costs.

The level of farm debt has increased by about 30% in the past two years to $45 billion.

Federated Farmers has teamed up with Westpac bank to run seminars around the country to offer some practical guidance, starting this week.

Federated Farmers chief executive Conor English says that right now the biggest problem for farmers is adjusting to their changed financial circumstances and managing their cash flows.

Mr. English says that the expenditures are up, incomes are low and debt has increased by sizable percentage from two or three years ago.

He says that for farmers it is important to run their cash flows, which have been severely restricted by reduced dairy payouts.

On Monday, the first of the two-hour seminars are in Timaru and Kaiapoi.