Farm inputs higher – Stats Canada
By Statistics Canada
October 23, 2012 – The Farm Input Price Index rose 0.7 per cent in the second quarter, following a 2.7 per cent increase in the first quarter. This was the eighth consecutive quarterly increase for the index.
Animal production (+1.9 per cent) contributed the most to the quarterly movement of the index. This component has been the largest contributor to the price movement in five of the last eight quarters.
The index increased in six provinces during the second quarter. Quebec (+1.9 per cent) and Ontario (+0.9 per cent) contributed the most to the national growth. These increases were partially offset by a decline in British Columbia (-1.0 per cent). This was the second time since 2009 that Alberta has not led the growth of the index. Quebec’s price increase was led by prepared feed costs (+12.3 per cent). Increases in prices in Alberta were dampened by the price of cattle (-2.1 per cent).
Nationally, farm input prices increased 5.4 per cent in the second quarter from the second quarter of 2011.
Animal production (+8.3 per cent) contributed the most to the annual movement of the index, but the overall increase was offset by decreases in general business costs (-0.5 per cent). Animal production costs have contributed the most to the annual price movement of the index since the third quarter of 2010.
Higher annual animal production costs were primarily the result of cattle prices rising 15.6 per cent and prepared feed costs increasing 10.9 per cent since the second quarter of 2011.
Year over year, Alberta (+6.4 per cent) and Ontario (+5.0 per cent) contributed the most to the advance of the Farm Input Price Index. Alberta has contributed the most to the annual movement of the index since the third quarter of 2010. The annual increase in the index was slightly offset by the annual decline measured in British Columbia (-0.4 per cent).