The latest Anglia Farmers’ Aginflation index figures show that from January 2015 to January this year there has been an overall reduction in input costs of 4.35% – the largest drop since 2009, when deflation of -6.3% was recorded The main drivers for the reduction are the significant drop in fuel prices (20.7%) and fertiliser (13.6%). Clarke Willis, Anglia Farmers Group chief executive commented: “Some of the reduction in the gas price has fed through to fertiliser prices, although it could be argued that given the significant fall in gas prices, not enough of a drop in fertiliser prices has been seen. Clearly the reduction in energy prices can be seen across a number of other sectors.”
Costs in the index, launched by Anglia Farmers in 2006 as a definitive tool for assessing the cost of farm production, are noted when they are experienced rather than when the inputs are used and the prices reflect prudent purchasing practice so may include, for example, fertiliser purchased but not applied until the following year.
