farm Input costs

[craig]

The last farm input survey indicates that while fertilizer in western canada has risen by about 31% it has only risen in eastern canada by about 8%. Anyone hazard a guess as to why. I'm assuming it may have to due with where it comes from and when it was bought.

[charliep]

Not sure on why the difference east and west.

Saw a budget on the weekend that had average variable cash costs/acre at $200. That is fertilizer, seed, herbicides, fuel, crop insurance, repairs, etc. Above does not include interest (operating or long term), depreciation, rent, living or interest on investment. Just curious what others are seeing on the cost side.

[wilagro]

Anyone willing to throw $200 into the ground and hope to get a great return for his/her effort is certifiably "nuts". Mother nature had better look on you favourably for that gift.

Better to buy real estate or buy oil stocks.

[charliep]

Just curious as to what you would find an acceptable variable cost/acre.

Fuel $1.10ish/litre
Nitrogen somewhere in the 60 to 70 cent/lb actual N.
Phosphorus anywhere from 50 cents to a buck/lb depending whether you bought last winter or are trying to buy now.

Seed from $15 to $25/acre (assuming common at replacement cost plus cleaning and treatment). Certified seed $30/acre plus. TUA on canola.

Will let everyone put their own herbicide portfolio on. Everyone/crop different but likely at least some expense on insecticides, fungicides.

Crop insurance - you put in your own number.

You can put in your other variable costs.

[just_wondering]

In talking to a seed grower in the area he has already bought and paid for next years phos at $1350. picked up next spring he heard talk of $2000.00 plus,
I can't cashflow it out that far but it seems like that might be the rate.

[Burbert]

Gee gosh golly folks, lets keep throwing these foolish numbers around, and watch angribusiness respond. Betcha they read this drivel and think to themselves. How stupid are farmers? Can you believe that they'll publish what they'll pay, then whine and complain to high heaven about the prices. Guess its time agin for big govment to step in a consider subsidy action to help the gulible challanged bumkins......

[FarmRanger]

There's nothing like high prices to ration demand, which is exactly what should happen in a free market. Be sure to sharpen your pencil when calculating your optimum fertilizer application amounts.

Lets just put it this way for the pessimists who like tell us farmers they're “nuts“ or “stupid“. At $1500 per tonne, there will be a dramatic reduction in phosphate use from farmers with sharp pencils and limited resources.

The best cure for high prices, is high prices, and on the flipside, the best cure for low prices is low prices.

Snowing here this morning so my drill is parked. Happy and safe seeding to all!