Rises in interest and local and central government rates and fees contributed to a 1.1% increase in input prices for sheep and beef farmers in the year to March.
The increase followed a 0.6% decrease the previous year.
It was only partly offset by a fall in fuel prices as fuel accounted for less than 5% of sheep and beef total farm expenditure, Beef and Lamb New Zealand economic service chief economist Andrew Burtt said.
Of the 16 input categories, prices for 12 increased and four decreased.
Interest and local and central government rates and fees were up 9.4% and 4.9% respectively, while prices decreased by 21.7% for fuel and 2.3% for fertiliser, lime and seeds.
On-farm inflation was 32.3% over the past 10 years, compared to 25.2% for consumer price inflation over the same period, meaning input prices increased faster than the prices of consumer items New Zealand households bought over the decade.
Excluding interest, the underlying rate of on-farm inflation was -0.3%, compared with 1.1% when including interest, in the year to March, which highlighted the importance of interest expenditure in total farm expenditure, Mr Burtt said.
• A veterinarian-designed programme aimed at helping farmers to boost their gross farm income will be discussed today at the New Zealand Veterinary Association's sheep, beef and deer conference in Queenstown.
Veterinarian Chris Mulvaney from AgriNetworks in Te Awamutu, who was previously in Central Otago for many years, designed the StockCARE programme.
It focuses on identifying and defining the key performance indicators of all production systems on each farm and also monitors farm soil fertility and financial performance.
It is designed to help sheep and beef farmers measure what they manage within their business. It is based on the principles of adult learning, change management and business improvement.
