Average prices for fuel and fertilizer are down this year compared to last, according to statistics compiled by Alberta Agriculture’s economics and competitiveness division.
Gasoline was 23 percent cheaper in May 2015 compared to May 2014, and diesel was 28 percent cheaper.
On average, Alberta farmers paid $85.37 per 100 litres of purple gas in May and $85.03 per 100 litres for farm diesel, which compares to $111.26 and $117.49, respectively, for that amount of fuel in May 2014.
Fertilizer also cost less than it did last year, on average. Nitrogen fertilizer costs are lower and phosphate is slightly higher, but overall the price is lower this year than last year.
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“We’ve seen fuel costs come down over the past year,” said Todd Bergen-Henengouwen of the department’s economics division.
“When it comes to fertilizer prices, they are a little bit lower as well.”
Farmers paid an average $658.22 in May for one tonne of bulk urea, 46-0-0, compared to $736.33 in May 2014. A tonne of 11-51-0, in bulk, cost an average $842.41 this spring compared to $794.67 last May.
“I would say cheaper energy prices are beneficial for farmers, and that being somewhat of a major input for farmers as well,” Bergen-Henengouwen said.
Alberta is the only province that tracks average farm input prices on a monthly basis and makes them available to the public.
It obtains prices from 25 agriculture centres in the province for 54 selected farm inputs ranging from fence posts and combines to seed and feed.
The prices listed are averages of all the numbers gathered.
“The main clients for it are producers and industry, both federal and provincial levels of government, and then general public, universities and researchers and that sort of thing,” said Roy Larsen of the department’s statistics and data development branch.
“It’s used towards benchmarking, monitoring input costs as well as help with some farm management decision making.”
The government has been gathering these prices since 1976, so cost comparisons are easily made year against year and month by month. The Alberta Federation of Agriculture assists with price data collection.
Bergen-Henegouwen said hay prices in May were up eight percent from last year. Dry conditions across much of the province may be the reason.
Prices for feed wheat and feed barley in May were about the same as they were one year ago but have rallied in June.
He speculated that higher cattle prices might be the reason for higher fence post costs, although the reason for a 22 percent increase is difficult to determine.
A single treated, standard grade three-quarter inch post, seven feet long, sold for an average $5.29 in May, compared to $4.35 in May 2014.
“I haven’t looked into it too deeply,” he said.
“One example could be maybe there’s people putting up more fence because the price of cattle is higher.”
On the other hand, it could be related to a shortage or to lumber prices.
Most farm input costs tend to rise over time, due to inflation if nothing else. Among farm inputs with a lower cost this May compared to last May are:
- barbed wire, 12-gauge, double strand, 40 kg: $65.46 ($67.09)
- nails, standard grade, four inch spiral, 50 lb.: $73.38 ($76.89)
- dairy supplement, pellets, 32 percent, bagged, 25 kg: $18.59 ($20.57)
- vitamin AD with E, injectable, 250 ml: $26.95 ($27.34)
The most expensive item tracked is the Class 7 self-propelled diesel combine, with 323 to 374 horsepower. The average cost was $380,861 this spring, while the same unit averaged $359,329 last May.
Farm input prices can be found on line at www.agric.gov.ab.ca/app21/farminputprices.
barb.glen@producer.com
