By Joe Dales
Farm input costs in Ontario were down in the third quarter of 2015, compared to second-quarter numbers.
Stats Canada this week released data showing a 0.4 per cent drop in costs, but third-quarter numbers were still up a full two per cent from 2014.
While costs were down in Ontario, the nation-wide Farm Input Price Index (FIPI) rose 0.4 per cent in the third quarter.
The national increase was mainly attributable to animal production (+1.7 per cent).
A deeper look at costs related to farm machinery and motor vehicles shows that Canadian farmers spent 4.9 per cent less on those categories in the third quarter of 2015 versus one year ago.
Other inputs factored into the index are buildings, general farm business costs, and crop production.
Stats Canada’s FIPI is an indicator of the change in input costs faced by Canadian farmers. As such, the FIPI can be used to monitor price changes, which are considered in the operations of marketing boards and in price stabilization programs.
Governments use index data to develop national and regional economic policies related to agriculture.