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One farm input cost that has come down dramatically from last year is diesel fuel. Allyn Tastad, a partner in the Saskatoon accounting firm of Hounjet Tastad Harpham has analyzed diesel consumption costs for some of his farm clients. Back in 2007, farm diesel averaged 73.1 cents a litre, which generated a cost of $8.26 per farmed acre. In 2008, the average diesel price jumped to $1.038 per litre which gave a farm cost of $10.93 an acre for Tastad’s farm clients. Currently the price of farm diesel is in the range of 57 cents a litre. If that carries through for the year, the cost per acre would be around $6.00. Every farm will be a bit different, but in these farms the saving as compared to last year is nearly $5 an acre. That isn’t a large amount compared to what you can make or lose with grain pricing decisions, but every little bit helps. Despite a grain price outlook that’s a lot lower than a year ago, the bottom line is still positive for most producers when they crunch the numbers. Some moderation in the cost of inputs such as fertilizer and fuel is definitely helping that bottom line. I’m Kevin Hursh
Kevin Hursh, PAg, CAC