Farm Input Prices Rise
Farm Expenses Price Index: September 2001 quarter
The Farm Expenses Price Index increased 1.0 per cent in the September 2001 quarter compared with the June 2001 quarter, according to latest figures from Statistics New Zealand. The index is now 7.1 per cent higher than in the September 2000 quarter.
A 3.3 per cent rise in livestock prices contributed significantly to the overall increase in farm expenses in the September 2001 quarter. Livestock prices rose 30.7 per cent between the September 2000 and September 2001 quarters. When livestock prices are excluded, farm expenses rose 0.5 per cent this quarter compared with the previous quarter.
This quarter, price increases for feed, grazing, cultivation and harvesting contributed just over a third of the overall increase in farm expenses. Price increases in the September 2001 quarter were partly offset by a 3.6 per cent fall in the interest rates index.