Key farm inflation figure stays virtually static, according to Anglia Farmers
PUBLISHED: 11:22 01 March 2014 | UPDATED: 14:08 07 March 2014
Farm input costs have remained virtually unchanged in the past six months, according to the latest half-yearly figures from buying group Anglia Farmers.
The latest AF Agricultural Inflation Index to January 31 showed that the weighted average increased by 0.08pc. It revealed a fall of 3.31pc in August last year.
The costs for fertiliser, seed, machinery and animal feed and medicines fell by less than 0.5pc.
The AF Index also calculated the impact on individual sectors. While sugar beet production costs fell by 0.6pc, the RPI for granulated sugar declined by 6.52pc.
It was a similar position for potatoes as costs fell by 2.73pc and retail prices dropped by 7.62pc.
There was a modest increase in cereal production, up by 0.32pc while the RPI rose by 3.19pc. Beef and lamb production costs were 1.2pc higher and the RPI was up 1.55pc. Retail milk prices were unchanged but dairy farm costs were 0.31pc higher.
The index, launched by north Norfolk farmer and former AF director, Jim Alston, in 2006 is based on purchases by the group’s members of about £250m a year and cover a total of 132 cost items.