The Farm Input Price Index, which measures the costs incurred by farmers throughout Canada, increased 0.6% in the second quarter, according to Statistics Canada.
The growth during the second quarter was mainly attributable to higher prices for animal production (+1.7%) due to an increase in prices for livestock purchases (+9.8%), notably cattle (+11.9%). This increase was moderated by lower prices for commercial feed (-3.7%), in particular prepared feed (-3.1%) and grain feed (-6.3%).
Prices for crop production rose 0.5%, while machinery and motor vehicles (-0.3%), buildings (-0.1%), and general business costs (-0.2%) moderated the increases.
The Farm Input Price Index rose in all but two provinces in the second quarter. Alberta (+1.2%) and Ontario (+1.1%) recorded the biggest increases, while Quebec (-0.7%) reported the largest decline. Year-over-year, farm input prices increased 1.0% at the Canada level as a result of higher prices for machinery and motor vehicles (+4.5%).
