Farm Production Costs Climb 17 Percent

U.S. farmers paid 17 percent more for their production inputs this April compared to a year ago. Prices went up in 10 of the 12 cost of production categories.

Fertilizer, Fuels, Seeds, and Feed led the way with double digit percent increases. Livestock & Poultry and Autos & Trucks were the only categories to avoid increases, declining 10 percent and 2 percent respectively.

The largest increase was seen in fertilizer, where the U.S. prices paid index for fertilizer jumped 65 percent from April 2007. Muriate of Potash doubled its price from a year ago to $561 per ton, while Urea rose 22 percent to $522 per ton. In the North Central Region (including Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin), farmers paid on average $769 per ton for Anhydrous Ammonia, $779 per ton for Superphosphate and $372 for 28 percent Nitrogen Solution. The mixed fertilizer 9-23-30 cost farmers in the North Central Region $720 per ton on average, a leap of 98 percent from 2007.

Compared to April 2007, the U.S. fuel prices index grew 43 percent. The average U.S. prices for unleaded service station gasoline, unleaded bulk delivery, and L.P. bulk delivery were $3.28, $3.33, and $2.28 per gallon respectively. Diesel bulk delivery again realized the largest increase, going up 49 percent from a year ago to $3.62 per gallon. In the Lake States Region (Michigan, Minnesota and Wisconsin), the average gallon of unleaded service station gasoline was up 63 cents per gallon to $3.22. This was the lowest of any region in the U.S. The Pacific Region tallied the highest average for unleaded service station gasoline at $3.44.

The U.S. prices paid index for feed increased 27 percent from April 2007. Nationally, feed grains, complete feeds, hay/forages, concentrates, and supplements all increased from last year. Feed grains saw the largest increase at 52 percent above the previous year. In the Lake States Region, average feed commodity prices increased for all those that were surveyed, with the exception of Liquid Molasses which was unchanged at $16.40 per cwt. Dairy feed with protein concentrate between 32 and 38 percent rose 24 percent to $488 per ton. The price of alfalfa meal climbed 13 percent.

U.S. farmers paid 7 percent more for new machinery compared to April 2007. The average prices for the general categories of 2-wheel drive tractors and balers rose between 1 and 6 percent. Prices increased for 51 of the 55 items surveyed.

The U.S. prices paid index for chemicals edged up 4 percent from a year ago. Herbicide prices went up for 18 items surveyed and went down or stayed the same for five. The largest jump was Glyphosate 4#/gal, increasing 40 percent to $40.50 per gallon. Fungicides saw 11 of the 15 published items increase. Calcium Polysulfide showed the largest increase, climbing 44 percent to $11.60 per gallon. Fourteen of the 26 Insecticides surveyed rose in price.