Agricultural Prices Fall In August

The monthly price index for all agricultural outputs fell by 4.2% in August due to the index for crops falling by 3.7% and animals and animal products also falling by 3.7%. Prices are generally lower than the same time last year with the index for all outputs and inputs being 11% and 4.2% lower. Fresh vegetables also fell by 4.5% due to large volumes and low demand. Cereal prices are 16% lower than July. On the input side animal feed prices fell by 2.8% making them 13% lower than last year.

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).

Defra Biodiversity Survey

The results of a recent survey on knowledge and attitudes towards the environment by Defra show that 92% of respondents said that it is important to hace green spaces nearby and 56% said they use them at least once a week.

The survey also showed that 48% of respondents had some knowledge of biodiversity, up from 44% in 2009. When prompted, 78% agreed that they worry about the loss of native animals and plants and about changes in the countryside. Volunteering had been carried out by 13% in the previous 12 months.

Agricultural Prices Good For Producers In October

The agricultural prices indices statistical relaease from Defra for October 2010 shows prices received by producers for agricultural products increased slightly in October 2010 and purchase prices paid by producers for agricultural products excluding subsidies decreased slightly.

The prices indices for prices received by producers for cereals increased to 218.8 in October 2010 from 197.1 in September 2010. Industrial crops prices increased to 139.7 from 138.3. Fresh vegetables increased in price from 121.3 to 130.9. and the total index number for crop products was 166.2 up from 157.6 in September. Animals and animal products indices total was 139.7 from 139.2 in September 2010. The overall total was 150.6 up from 148.0.

Prices indices for prices paid by producers for agriculural products included seeds at 117.0 from 99.6, energy and lubricants 151.2 from 147.4, fertilizers and soil improvers decreased to 198.4 from 230.4. Plant protection products price index increased to 106.0 from 105.7. Animal feedingstuffs indices totalled 166.1 up from 163.3. The plant maintenance and repair index remained unchanged at 128.1. The maintenance and repair of buildings index increased slightly to 133.1 from 133.0. Veterinary services increased slightly from 132.8 to 132.9. Machinery and other equipment went up to 126.9 from 126.6. The total index for all goods and services contributing to investment decreased to 120.1 from 120.4. All means of agricultural production decreased from 140.7 to 136.9 in Octber 2010.

Producer Prices Index Of Agricultural Products

The producer prices index of agricultural products for cereals was 114.9 in February 2010 down from 116.1 in January. The annual series index of cereals in 2009 was 150.1 down from 207.1 in 2008 an unusually high index in the series since 2003. Industrial crops for February increased from 123.8 to 124.6 and vegetables decreased from 127.3 to 121.6. Animals and animal products decreased from 143.2 to 140.9. The all products total index decreased slightly from 137.4 to 136.6 in February. The total of all products index for 2009 decreased from 143.3 to 135.5.

The purchase prices index of agricultural inputs includes seeds, crop protection products and fertilizers as well as feedingstuffs and energy. Seeds were unchanged at 104.5 in February, sprays were also unchanged at 99.9 but the fertilizer index increased from 209.8 in January to 214.7 in February 2010. The index of feedingstuffs increased from 154.3 to 156.2 over the month between January and February. The energy and lubricants index decreased from 152.8 to 149.1. The maintenance and repair of plant index was 125.3 from 125.4, of buildings 125.8 from 123.8, veterinary services went from 105.2 from 105.0. Cultivation and harvesting machinery, tractors and other machinery and equipment increased from 125.0 to 125.1. Buildings increased from 122.1 to 123.6. The index of all means for agricultural production for February 2010 went up to 122.2 from 121.7 in January and for 2009 the index was down to 133.1 from the sharp increase to 139.6 in 2008 from 113.8 in 2007.

Farm Incomes Up By 25%

Total income from farming is estimated to have risen by 25% in real terms. The causes were a fall in the value of agricultural outputs of 2.5% offset by a greater fall in input costs of 4.9% and an increase in Single Payment Scheme payments of 17%. Total income is expected to fall by 8.8% in 2010.

TIFF per full-time person equivalent is expected to rise in 2009 by 26% as a result of the increase in TIFF and a fall in the volume of agricultural labour input and is expected to fall by 8% in 2010.

Agricultural output is expected to have declined by 2.8% in 2009. The main factors are a fall in the value of crop production partly offset by an increase in the value of livestock production. The fall in crop values was driven by a fall in wheat, barley, oilseed rape and potato prices partly offset by an increase in the value of sugar beet yields which are expected to be high and the area of forage crops is expected to increase. Increases in cattle, sheep and pig production and an increase in capital formation in livestock ofsetting a fall in milk production value explain the increase in the value of livestock production.

Output is expected to decline further in 2010 to be only partly offset by declining input costs and a rise in payments. These estimations are subject to very broad margins of uncertainty due to the nature of agriculture.