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EU farm agchem costs on the rise

There has been a steady increase in the costs of agrochemicals and other inputs for EU cereal farms, reveals the European Commission’s latest cereals farm report. While overall profitability has benefited from high grain prices and good yields in recent years, production costs have “climbed higher than ever”, it notes. Average costs per farm over 27 EU member states indicate that crop protection costs for common wheat increased from €98/ha in 2008 to €106 in 2012. That is back to the 2007 level before the economic crisis, but still below the 2006 peak of €114/ha. For other cereals, a steady increase has been seen since the lowest levels in 2004 or 2005. For durum wheat, crop protection costs rose from €39/ha in 2005 to €57/ha in 2012, while barley costs were up from €29/ha to €34/ha. Crop protection costs for grain maize increased from a low of €71/ha in 2004 to €116/ha in 2012. Total average crop protection costs per farm in the 27 states were €4,300 in 2011, compared with €3,100 in 2007.

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