Farm Input Prices Increase 0.5 Percent

Farm Input Prices Increase 0.5 Percent

The Farm Expenses Price Index increased 0.5 percent in the September 2002 quarter compared with the June 2002 quarter, according to the latest figures from Statistics New Zealand. Farm input prices including livestock have risen for 13 consecutive quarters and are now 18.9 percent higher than in the June 1999 quarter, and 4.0 percent higher when compared with the September 2001 quarter.

A rise in interest rates contributed significantly to the overall increase in farm input prices in the September 2002 quarter. Interest rates rose 3.1 percent, following a rise of 4.4 percent in the June 2002 quarter. Also contributing to the overall increase was a rise in the cost of shearing, which showed a 3.0 percent increase in the September 2002 quarter.

The overall increase in farm input prices was partly dampened by a fall in the livestock purchases index, which fell 1.0 percent from the June 2002 quarter to the September 2002 quarter. This is the first fall in this index following a long period of increases recorded since the June 1999 quarter.

Brian Pink

Government Statistician

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