Report: Cost of Agricultural Inputs Driven Up by Higher Fuel Price

Posted by Matt Hopkins|3 November 2017

The average cost of agricultural production inputs has increased 4.92% in the past 12 months to September 2017, according to new figures and reported on FarmingUK.com.

The main driver for the increase, according to Anglia Farmers’ (AF) AgInflation Index, was fuel price.

It rose 11.5% due to the increase in the cost of Brent Crude Oil per barrel (bbl) and a devaluation of Sterling against the US Dollar in the first half of the year.

AF Group Chief Executive Jon Duffy said: “Fuel is the primary driver in this latest AF AgInflation Index. In the 12 months to September 2017 Brent Crude Oil has increased from US$46bbl to US$55.9bbl.

“Couple this with an initial devaluation in the exchange rate between September 2016 and February 2017 of 1.31 to 1.25 US$/£, the past six months has seen the exchange rate strengthen to 1.33US$/£ in September 2017.