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Higher Farm Expenses

Farm Expenses Price Index: September 2000 quarter

Higher Farm Expenses

Farm input prices rose by 2.1 per cent for the September 2000 quarter, according to Statistics New Zealand's Farm Expenses Price Index. This is the fifth consecutive quarterly rise in the all farms inputs index, which has increased by 6.7 per cent for the period from the June 1999 to the September 2000 quarters. Increases in livestock prices, fuel prices and interest rates have all contributed to the overall increase in farm expenses.

The index measuring livestock prices for all farms has recorded increases for the last six quarters. However, livestock prices remain below the high recorded in the March 1994 quarter. Between the March 1994 and the December 1995 quarters the all farms livestock purchases index fell 26.0 per cent. Livestock prices remained relatively stable between the December 1995 quarter and September 1999 quarter rising 11.2 per cent. The overall rise has accelerated recently with a 19.3 per cent increase recorded from the September 1999 quarter to the September 2000 quarter.


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