Input cost comparison

Fertilizer and fuel prices have come down dramatically, but farm machinery costs remain very high. The Statistics and Data Development Unit of Alberta Agriculture and Rural Development publishes average farm input prices for Alberta for selected commodities. The information is now available in a new format that allows you to see current prices and compare those to price changes over the last five years. On diesel fuel and fertilizer, prices peaked in the summer and fall of 2008 and have since declined dramatically. The Alberta data shows the price of phosphate fertilizer, 11-51, peaked at about $1,350 a tonne in October of ‘08. Phosphate prices are now under $500 a tonne. Urea, 46-0-0, also peaked in October ‘08 when it reached nearly $950 a tonne. The current price is around $425. In contrast, equipment prices peaked this year and have remained high, probably due to the strong Canadian dollar. A four-wheel drive tractor in the 325 to 375 horsepower range was listed at $220,000 in September of ’08. The price is recent months has been around $250,000. A 3,500 bushel hopper bottom grain bin has seen an almost steady rise in price for the past five years. At the beginning of 2005, the price was about $9,500. Now that bin is well over $13,000. I’m Kevin Hursh.