Higher Farm Input Prices

Farm Expenses Price Index: March 2001 quarter

Higher Farm Input Prices

The Farm Expenses Price Index increased 1.4 per cent in the March 2001 quarter, according to latest figures from Statistics New Zealand. The index increased 8.0 per cent between the March 2000 and March 2001 quarters. Farm input prices have increased by 11.1 per cent since the September 1999 quarter, following six years in which the index remained relatively flat.

An 8.1 per cent rise in livestock prices contributed significantly to the overall increase in farm expenses for the March 2001 quarter. Between the March 2000 and March 2001 quarters livestock prices rose 27.7 per cent. When livestock is excluded farm expenses rose 0.4 per cent in the March 2001 quarter.

Price increases for fertiliser, lime and seeds and for feed, grazing, cultivation and harvesting also contributed to the overall increase in farm expenses. Price increases in the quarter were partly offset by falls in fuel prices and interest rates.

Ian Ewing DEPUTY GOVERNMENT STATISTICIAN END

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