Farm Gate Prices Down In October

Defra's agricultural price index for all outputs fell by 1.27% in October. Inputs also fell by 1.39%. Prices were generally lower than the same time last year with outputs prices falling 9.7% and inputs prices falling 2.1%.

The price index for all crop products fell by 2.7%, fresh fruit fell by 1.36% and fresh vegetables fell by 5.11%. Maincrop potatoes fell by 11.2% and overall potatoes were down 13.5%.

Prices for animal feed fell in October with straight feed down 3.3% and compound feed down 0.1%.

Farm Gate Prices Down In May

The agricultural price index for all outputs fell by 0.8% and the API for inputs fell by 1.4% in May 2014 according to a statistical bulletin from Defra. The prices are lower than the same time last year. The API for all outputs is 8.3% lower and the API for all inputs is 3.4% lower than last year.

All crop prices are down on last year at this time. The biggest differences in output prices are with potatoes (46%), fresh fruit (27%), cereals (18%) and fresh vegetables (18%). On the inputs side, energy and lubricant prices are down for the fourth month in a row. Prices fell by 0.3% in May and are 1% lower than a year ago. Animal feed is down 1.9% on the monthly comparison and 31% down on last year. Fertiliser prices are 2.9% lower in May and 9.1% lower than the same time last year.

Agricultural Prices Down In March And Year

Prices for all outputs rose by 0.6% and the prices of all inputs was unchanged for March 2014. Prices are lower than the same last year. The price for all outputs was 6.9% lower than the same time year. The price for all inputs was 4.5% lower than the same time last year.

Crop prices are down slightly compared with last year. The poor harvest may have been to blame. Some crop prices are significantly down on last year: potatoes down 38%, fresh fruit down 23%, oilseed rape down 22% and cereals down 22%.

Strong demand for top quality fresh fruit led to a price rise of 7.7% in March. Cereals prices increased by 1.2% due to concerns over the future supply of cereals due to the political situation in the Crimea. An increase in global demand for oilseed rape and decrease in supply led to a price rise of 2.3% in March.

Sheep and lamb prices increased by 9.3% in March as supplies decreased pushing up prices. Lower levels of production of mutton and lamb than last year, down 1.8%, resulted in prices 8.7% higher than last year.

On the inputs side, energy and lubricant prices were 2.5% lower in March and 4% lower than last year. Feed prices increased by 0.5% but remain 12% down on last year. Straights rose by 2% due to increased cereal prices while compounds stayed the same.

The price of fertiliser rose by 0.4% in March but is still 8.2% lower than last year. Prices remain steady because most of the spring fertiliser market was already ordered.

Total Farm Incomes Up 13%

Defra released the first estimates of total income from farming (TIFF) recently and it is reported to have risen by £708m or 13% in real terms between 2012 and 2013 to £5,464m. In terms of annual work units (AWU) of entrepreneurial labour the increase was 15% in real terms to £28,426 in 2013. The difference is due to a decline in the numbers of farmers and other unpaid workers.

Key contributors to the increase were milk by £505m, potatoes by £210m, and barley by £199m. The increases were offset by a decrease in value of oilseeds of £245m and an increase in the cost of animal feed of £740m.

Agriculture's contribution to GDP measures as gross value added at basic price increased by 7% or £604m to £9,222m. Intermediate consumption increased by £892m to £16,492m mainly due to an increase in the price of animal feed an additional increase in the value of seed. There was a reduction in the number of employees but a small increase in pay of £23m to compensate. The total compensation of employees in 2013 was £2,379m.

Compared to 1994 total income from farming per AWU of entrepreneurial labour has increased by 10% compared to a 15% fall in total income from farming.

Agriculture Sees Fall in API in August

The agricultural prices index published by Defra for all outputs fell by 2.5% in August but remains 0.6% higher than last year. The API for all inputs fell by 0.5% but is still 1% higher than last year.

All of the output price categories fell with the exception of milk. Cereals fell 9.7% and are 13% lower than last year, oilseed rape fell 8% and is 15% down on last year, potatoes are 8.8% lower than last year and vegetable prices are down 5.1% and 6% on last year. Livestock prices are 4% down in August but are still 5% higher than last year. Milk has seen a 2.2% increase in price in August and are 20% higher than last year.

On the input side animal feed has fallen in price by 7.2% reflecting falling prices in cereal and industrial crops. Motor fuel price increases of 2.7% have put them 2.3% up on last year.

Change To Defra's API Base Year

The first publication of the agricultural prices index using the new 2010 base year was published by Defra on 18 July 2013. Slight changes are expected when compared to the 2005 base year price series.

The agricultural price index for all outputs in May rose by 1% and remains 12% up on last year. The price index for all inputs fell by 1.2% in May and is 4.6% higher than last year.

All outputs prices increased 1% in May and 11.8% over the year. Crop products prices increased 1.1% on the monthly comparison and 17.7% on the annual comparison. Potato prices continue to rise due to low supply of last seasons potatoes and a late start to the harvest of new season potatoes. Fresh fruit prices fell 28% in May mainly due to a 32% fall in the price of strawberries due to an increase in supply. Vegetable prices did not change much. Tomato prices fell 20% due to increased supplies of imported tomatoes. Lettuce and onion prices increased as a result of reduced supplies. Animal and animal produce prices fell slightly by 1.1% but remain 6.4% up on the same time last year.

The prices of agricultural inputs fell 1.2% in May but remain 4.6% up over the year. Motor fuel fell by 3.5% and is therefore 6.9% lower than last year. Nitrogen prices are 14% down because of lower demand and retailers are reducing prices to increase sales. Animal feeds prices remained more or less stable (-0.4%) and 15.7% above prices last year.

November Increase In Animal Feed Production

Animal feed retail production in Great Britain increased by 6.2% in November 2012 compared with November 2011. Raw material usage increased 6.1%. Integrated feed production increased 1.2%.

The quarterly average prices of animal feedingstuffs for July to September 2012 increased across the board. The price of cattle and calf feed was up 1.04% at £232/tonne (£223/tonne), pig feed was up 1.04% at £268/tonne (£258/tonne) and sheep feed was up 1.05% at £234/tonne (£222/tonne).

Agricultural Prices Down In October

In the Defra API outputs monthly series for October 2012 the total outputs index was 178.6 from 180.1 in September, a fall of 0.8% in the month but there was an increase of 8.7% over the year. In the inputs monthly series the index was 153 from 153.6 the previous month giving a -0.4% change in prices but an increase of 1.2% over the year. There was 0.7% fall in costs of goods and services currently consumed in production from 159.7 to 158.6 over the month.

The agricultural prices index (API) output prices are divided into major crops prices which increased 0.9% over the month giving an index of 201.7 (199.9=2011) and an increase of 0.9% (16.7%) and livestock and livestock products which increased to 162.3 (161.8) or 0.3% (2.5%). These prices reflect what farmers receive for their products.

Animal feed prices, which are a key indicator, showed a 6.3% change in the price of these inputs whereas prices for animal and animal products showed only a 2.5% change in the output price.

Input prices are divided into goods and services currently consumed (eg. fertiliser and seed) which had an index of 158.6 (159.7) or -0.7% (1.3%) and goods and services contributing to investment (eg. tractors and buildings) which had an index of 123.3 (123.1) an increase of 0.2% (0.6%). These are a reflection of the prices farmers have to pay for goods and services.

The outputs annual series index stood at 165.6 in 2011 (145.9 - 2010) with crop products at 152.3 (133.3) and livestock and livestock products at 154.7 (141.4). The inputs annual series stood at 151.2 in 2011 (135.6 - 2010) with goods and services currently consumed at 157.1 (139.1) and goods and services contributing to investment at 122.5 (118.9).

Animal Feed Production In August Down On Last Year

The total British animal feed product for August was down 2.9% when compared with August 2010. Raw material usage was down 2.8% and integrated feed production was down 1.8%.

Quarterly average animal feed prices stood at £219/tonne for cattle and calf feed, £260/tonne for pig feed and £216/tonne for sheep feed for the period April to June 2011.

Animal Feed Production Down In May

The animal feed statistical notice from Defra for May shows that animal feed retail production in May 2011 was down 3.4% compared with May 2010. Raw material usage in the retail production of animal feed was also down 3.3% compared with the same period last year. Total integrated feed production was down 0.1%.

The quarterly average prices of animal feedstuffs for January to March were also included in the bulletin. Cattle and calf feed was on average £207/tonne, pig feed was £250/tonne and sheep feed was £203/tonne.

Animal Feed Production And Prices

Retail production of animal feed was 5% down in March 2011 compared with last year. Raw material usage in the retail production of animal feed was also down 4.7%. Integrated feed production was up 0.1% compared with March 2010.

The average price of cattle and calf for the October to December 2010 period was £199 per tonne from £180 per tonne July to September 2010, pig feed was £236 per tonne from £213 and sheep feed was £197 per tonne from £183.

Agricultural Producer Prices Up In March

In the monthly API of prices received by producers of agricultural products for March 2011 cereals went up to 251 from 247.9, industrial crops fell to 148.1 from 150.2 and fresh vegetables fell to 129.1 from 141.5. Seeds remained stable. Animal and animal products increased from 146.7 to 150.5 with animals for slaughter or export increasing from 150.4 to 156.4. The total of all products increased to 167.5 in March 2011 from 163.5 in February 2011.

Annual statistics for 2010 show cereals have increased to 171.8 from 150.1 in 2009, industrial crops to 138.8 to 132 and fresh vegetables to 131.9 from 113.9. The total of all crop products increased to 149.2 from 131.1. The total of all products index increased to 144.4 in 2010 from 136 in 2009.

Prices paid by producers for agricultural inputs in March 2011 included energy and lubricants increased in price from an index of 164.3 to 169.6, fertilizers and soil improvers increased from 223.6 to 227.9, plant protection products fell slightly from 103.7 to 103.6 and seeds remained stable. Animal feed fell from 191.6 to 188.7. Maintenance costs generally increased with repair of plant increasing to 132.1 from 131.3 and buildings from 136.7 to 137.4. Veterinary services costs remained stable at 123.9. Other goods and services fell considerably from 150.2 to the more usual 128.9. Machinery and other equipment increased slightly from 125.6 to 126.3 qand buildings from 130 to 132.5. The total for all means of agricultural production fell from 154.9 in February 2011 to 149 in March 2011.

In the annual series, the total of all means of agricultural production increased to 135.8 from 129.9. Within the total, there were increases in the prices of energy and lubricants which increased to 151.4 from 132.9 and animal feed which increased to 160.9 from 152.5. Maintenance costs increased from 121.5 to 126.9 for plant and 122 to 130.4 for buildings. Veterinary costs increased from 104.7 in 2009 to 118.8 in 2010. Machinery and equipment went from 122.1 to 125.3. Buildings increased to 126.9 from 120. There were some decreases. Fertilizers and soil improvers fell to 182.4 in 2010 from 189.8 in 2009 after the massive increases of 2008 (272.5) mainly due to price falls in compound fertilizers and the lime/chalk fertilizers and plant protection products fell across the board from 107.7 to 105.1.