Farmers must monitor input costs and not be afraid to shop around
1 May 2008
As concerns grow about rising input costs, the NFU is urging its members to make sure they keep a close on eye on costs and not be afraid to shop around to make sure they get the best deal on inputs like fuel and fertiliser.
In a bid to help members keep on top of the situation the NFU will be setting up a new monthly "Inputs Monitor" price comparator and input update report which will provide them with the latest information on costs.
NFU Deputy President Meurig Raymond said it was important members were not distracted by higher output prices and made sure they were getting the best deal they could, especially given the effect rising input costs were having on farm businesses. Red diesel prices had risen considerably in the past five years while fertiliser prices had increased significantly over the last 12 months*.
"While some sectors are seeing high output prices at the moment it is important farmers keep their eyes firmly fixed on the cost of inputs and shop around to make sure they're getting the best deal. The new monthly price comparison report will ensure members can stay up to date with the latest situation.
"As well as dealing with rising input costs, farmers are also extremely frustrated by the recent Budget proposal regarding Vehicle Excise Duty and particularly how it will affect genuine working vehicles.
"We will be lobbying strongly against the retrospective element of the VED proposal and looking at ways to improve the situation for working vehicles which farmers have no choice but to use on their farms."
Notes to editors:
* Red diesel has increased from 17p per litre in 2002 to its current price which ranges from 52ppl to 60ppl. Duty accounts for a maximum of 16 per cent of the cost and distribution and outlet costs for a further three to four pence per litre. Eighty per cent of the total cost of red diesel is directly accountable to the extreme volatility of the oil market.
* Fertiliser has seen huge price increases during the last 12 months. Businesses were able to pre-order this spring's fertiliser at between £180 and £250 a tonne but the current price is around £300 and is predicted to rise further. One of the key drivers has been the massive global demand for cereals, while rising oil and gas prices have impacted on manufacturing costs.
