Statistics Canada’s index of farm input costs for the final quarter of 2023 show a slight easing in British Columbia, but elevated levels versus two years earlier.
Total farm inputs indexed 153.1 at the end of 2023 versus a baseline of 2012 (up 53.1% versus the baseline), down two points from the previous quarter.
However, the index was 17% above the final quarter of 2021, when supply chain disruptions peaked prior to interest rates starting to rise.
General business costs showed the greatest growth over the intervening quarters, rising 39% to index at 156.7 versus 2012. Depreciation was also up significantly.
Animal agriculture was hit the hardest, with the cost of livestock purchases up 49% over the past two years driven by cattle purchases up 76%. Cattle prices are indexing 233.9 versus 2012, or more than double what they were 12 years ago.
Feed costs have also backed off the highs seen in 2022, according to Statscan. While prepared feeds are up 17% versus two years ago to index at 160.6, grain costs have shown the greatest improvement, almost returning to where they were two years ago with the index value up just 5% versus the final quarter of 2021.
The latest data indicates that crop producers have most to cheer about, with fertilizer costs down markedly from the peaks seen in the first half of 2022. In fact, fertilizer costs are now 11% below 2021 levels, indexing 124.5 at the end of 2023 versus 140.3 two years earlier.
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