BC farm input costs rise

The cost of inputs on BC farms is up 36% versus pre-pandemic levels, according to data released January 14 by Statistics Canada.

Data for the third quarter of 2025 point to a 39% increase in the cost of crop production driven by fertilizer prices, while livestock costs rose 33%.

Yet the dramatic run-up in beef prices means livestock farmers have seen the sharpest rise in the foundation of their operations – livestock.

The cost of livestock increased 76% versus the first quarter of 2020, with the majority of that occurring as post-pandemic activities resumed in 2022.

Cattle prices have doubled since 2020, with a 60% increase since summer 2022.

On the positive side, feed costs have dropped considerably over the same period. While up 24% from early 2020, they’re down 14% from their peak in spring 2022. Feed grain, in particular, is down 36%.

The lower costs have been good news for producers, but many continue to report depreciation values well above pre-pandemic levels.

Greater depreciation allows producers to mitigate taxes and manage cash flow, and depreciation charges have increased steadily since spring 2021 and now sit 59% higher than in 2021.

High depreciation charges have led to record negative farm incomes, underscoring that the sector continues to face tight times amid ongoing economic uncertainties.