Unwelcome face of ag-inflation (UK)

[jpak]

http://www.farmersguardian.com/story.asp?sectioncode=1&storycode=17788

BY the autumn, farm costs will have increased by almost a quarter over 18 months.

The latest figures from the Anglia Farmers Agricultural Inflation Index already show an overall rise of 16.65 per cent since September 2007.

The calculations are based on consistent cost change information from the purchasing co-op’s buying office on 76 products ranging from a ton of Cocktail barley seed, the cost of haulage, to the price for 100 fence posts – not unlike the method used for the retail price index with products grouped and then weighted.

Not surprisingly, the rises in fertiliser, fuel and feed prices are now coming through to have a significant impact on agricultural cost inflation.

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