New report reveals farm input costs decline
“Agribusiness lender Rabobank revealed yesterday that skyrocketing fertiliser prices are finally on the decline,” says Philip York, Federated Farmers economics and commerce spokesperson.
“Following the record high prices of 2008, Federated Farmers is delighted with the results of the Rabobank report, Farm inputs – the key to productivity.
“Farmers struggling with high on-farm inflation and increasing rates will be jubilant to hear US dollar prices for major inputs like fertiliser have fallen by up to 75 percent. This provides some relief for farmers. Previously rising input prices and declining commodity prices have forced farmers to closely examine on-farm costs.
“The 2008 season will be remembered for the rise and fall in world food commodity prices. On farm inflation has also been a major factor impacting profitability. We hope the latest cost decrease signals a turnaround for 2009. International fertiliser prices are expected to remain low for the next three years due to increased production and the low cost of crude oil.
“The next challenge will be for Government, local and central, to tackle farm compliance costs. Farmers are also under pressure from increasing rates. These must be constrained as councils move to review their Long Term Council Community Plans,” Mr York concluded.