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.

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.

Increase In Agricultural Prices

Defra has released the Agricultural Prices Index series for August 2010. The API all products price index for prices received by producers for agricultural products increased from 137.6 in July to 142.0 in August. Cereals prices increased overall from an index of 144.6 to 176.6 with wheat, barley and oats all going up, industrial crops also increased from 157.9 to 163.8 with potato and oilseed rape prices increasing and sugar beet unchanged. Fresh fruit prices also increased but the prices index for fresh vegetables fell from 124.9 to 116.9. The overall crops products index increased from 138.8 to 146.3 but seed and other crop products remained the same. Calf prices fell but cows and bulls increased and cattle increased helping the animal and animal products index increase slightly from 136.6 to 138.2.

Prices paid by producers for agricultural inputs have also increased slightly from an index of 139.7 in July to 141.7 in August 2010. Seed prices and spray prices stayed the same over the month but fertiliser prices increased slightly from 245.1 in July to 248.6 in August. Energy prices increased slightly from 148.1 to 148.5. The cost of animal feedingstuffs increased from an index of 159.9 in July to 164.6 in August 2010 with significant increases in the prices of feed wheat and feed barley. The prices of goods and services of plant and buildings and veterinary services increased slightly overall. There was a slight increase in the price of machinery and equipment and farm buildings prices were unchanged. The index for all means of agricultural production increased by two points from 139.7 to 141.7.