ONTARIO FARM INPUT MONITORING PROJECT SURVEY # 3 October 4, 2017 ECONOMICS AND BUSINESS GROUP, RIDGETOWN CAMPUS U of G
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1 ONTARIO FARM INPUT MONITORING PROJECT SURVEY # 3 October 4, 2017 ECONOMICS AND BUSINESS GROUP, RIDGETOWN CAMPUS U of G Background The Ontario Farm Input Monitoring Project is a survey of farm supply stores to collect cash retail prices that commercial farmers pay, when purchasing bulk fuels, fertilizers, and pesticides. Prices are collected on 45 farm inputs from 9 centres in Ontario, 3 in Michigan, 1 in Ohio and 1 in Indiana. Enumerators obtained current pricing from a minimum of 3 retail outlets in their assigned centre using the pre designed survey form. Results (i) Ontario Prices This is the third survey for On October 4, 2017, the Canadian dollar was lower than the U.S. dollar ($1 C = $ US). Fuel prices showed that Regular Unleaded Gasoline prices averaged $0.97 per litre, Diesel Fuel (coloured) averaged $0.90 per litre and Propane (farm dryer) prices averaged $0.48 per litre. Fertilizer prices showed Urea prices ranging from $450 to $600 a tonne with an average price of $503. Nitrogen Solution (UAN) 28% prices ranged from $235 to $525 with an average price of $335 per tonne. Mono Ammonium Phosphate prices varied from $600 to $800 per tonne with an average price of $663. Muriate of Potash prices averaged $476 per tonne with a range from $420 to $625. With respect to pesticide prices, 2,4 D Amine prices ranged from $9.00 to $13.64 per litre with an average of $ Atrazine prices ranged from $8.70 to $10.43 per litre. Banvel II averaged $28.18 per litre while Dual II Magnum prices averaged $43.86 per litre. The price for Halex ranged from $13.77 to $17.00 with an average of $15.33 per litre. Assure II prices averaged $80.03 per litre while Reflex prices averaged $48.96 per litre. Sevin XLR prices ranged from $23.00 to $28.99 per litre. Bravo prices averaged $10.91 per litre. Ontario product prices when compared to a year ago at this time (survey date: October 5, 2016), showed that fuel prices on average were up 15%, fertilizer prices were up 2% on average, and pesticide prices were down slightly. The Canadian dollar was up $0.04 or 6% relative to the U.S. dollar from a year ago. Since the previous survey on June 21, 2017, changes in average prices showed that the fuel products group was up 8% and the fertilizer prices were down 2%. Pesticide products as a group were down slightly. The Canadian dollar was up $0.05 or 7% relative to the U.S. dollar. (ii) Comparison Between Ontario and Nearby U.S. States Some of the products higher priced in Ontario include: Regular Unleaded Gasoline +24%; Diesel Fuel +15%; Urea +4%; 2,4 D Amine +65%; Dual II Magnum +21%; Sencor +27%; Pardner +24%; and Sevin XLR +31%. Products lower priced in Ontario include: Mono Ammonium Phosphate 1%; Pursuit 7%; Prowl 3%; Bravo 12%; Caramba 11%; and Halex 21%. The exact implications at the farm level of this variability between Ontario and the U.S. for farm inputs depends greatly on individual producer product selections and purchase timing.
2 ONTARIO/U.S. FARM INPUT MONITORING PROJECT SURVEY # 3 October 4, 2017 ECONOMICS AND BUSINESS SECTION, RIDGETOWN CAMPUS U OF G Background The Ontario/U.S. Farm Input Monitoring Project is a survey of farm supply stores to collect cash retail prices that commercial farmers pay, when purchasing bulk fuels, fertilizers, and pesticides. Prices are collected on 45 farm inputs from 9 centres in Ontario, 3 in Michigan, 1 in Ohio and 1 in Indiana. Enumerators obtained current pricing from a minimum of 3 retail outlets in their assigned centre using the pre designed survey form. Results (i) U.S. Prices This is the third survey for On October 4, 2017, the Canadian dollar was lower than the U.S. dollar ($1 C = $ US). Fuel prices showed that Regular Unleaded Gasoline prices averaged $2.35 per gallon, Diesel Fuel (farm) averaged $2.36 per gallon and Propane (farm dryer) prices averaged $1.39 per gallon. Fertilizer prices showed Urea prices ranging from $290 to $396 a ton with an average price of $350. Nitrogen Solution (UAN) 28% prices averaged $231 per ton. Mono Ammonium Phosphate prices ranged from $455 to $500 with an average price of $486 per ton. Muriate of Potash prices averaged $329 per ton with a range from $300 to $385. With respect to pesticide prices, 2,4 D Amine prices ranged from $10.58 to $24.00 per gallon with an average of $ Atrazine prices averaged $14.24 per gallon while Dual II Magnum averaged $ per gallon. Prowl H20 prices ranged from $39.90 to $57.33 per gallon. The price for Assure II varied from $76.54 to $ with an average price of $94.35 per gallon. Warrior II prices ranged from $ to $ per gallon. U.S. product prices when compared to a year ago at this time (survey date: October 5, 2016), showed that fuel prices on average were up 15%, fertilizer prices were down 2% on average, and pesticide prices on average were down 3%. The Canadian dollar was up $0.04 or 6% relative to the U.S. dollar from a year ago. Since the previous survey on June 21, 2017, changes in average prices showed that the fuel products group was up 12% and the fertilizer products as a group were down 5%. Pesticide products as a group were down 1%. The Canadian dollar was up $0.05 or 7% relative to the U.S. dollar. (ii) Comparison Between Ontario and Nearby U.S. States Some of the products higher priced in Ontario include: Regular Unleaded Gasoline +24%; Diesel Fuel +15%; Urea +4%; 2,4 D Amine +65%; Dual II Magnum +21%; Sencor +27%; Pardner +24%; and Sevin XLR +31%. Products lower priced in Ontario include: Mono Ammonium Phosphate 1%; Pursuit 7%; Prowl 3%; Bravo 12%; Caramba 11%; and Halex 21%. The exact implications at the farm level of this variability between Ontario and the U.S. for farm inputs depends greatly on individual producer product selections and purchase timing.
3 DATA COLLECTION METHODOLOGY Survey Details Sample size Approximately 27 Ontario and 15 U.S. retail outlets were surveyed. Method The fertilizer and pesticide prices were obtained by personal visits to a cross section of outlet stores. Petroleum prices were collected by a combination of both personal visit and phone. Locations Refers to geographic trading areas. Terms and Conditions Price The price collected was defined as the cash retail price an average commercial farmer would pay when purchasing a minimum amount of fuel, fertilizer, and pesticide. Volume Price reductions due to large volumes, bulk purchases, special memberships, or yearend sales incentives were not considered. Price quotes were for cash and carry. Services All additional services i.e. delivery, testing or application, were excluded from the price quote. Levy The Canadian container recycling levy was not subtracted from the Canadian price. Petroleum In Ontario the fuel tank and pump is assumed to be owned by the fuel supplier while in the U.S. the tank and pump is owned by the farmer. Price Comparisons Exchange The June 21, 2017 daily average rate for the Bank of Canada was used. i.e. $ Canadian equals $1 U.S. (or $ U.S. equals $1 Canadian) Average The arithmetic average of all price quotes for each geographic centre was calculated. Conversion U.S. prices were converted to their Canadian equivalent by adjusting for exchange rate, measure, and concentration. Values For mixing cost, $.01 designates no charge. GST Where applicable, GST was excluded from the input cost.
4 Monday, October 16, 2017 Price Comparison in Canadian Dollars Between Ontario and Nearby American States for Oct 04, 2017 ALL ONT. LOCATIONS ALL U.S. LOCATIONS ONTARIO PRODUCT UNIT MIN MAX AVG MIN MAX AVG Regular Unleaded Gasoline LITRE Diesel Fuel (coloured) LITRE Propane (farm dryer) LITRE Anhydrous Ammonia (no servic TONNE Urea 46% TONNE Nitrogen Solution (UAN) 28% TONNE Mono-Ammonium Phosphate TONNE Di-Ammonium Phosphate TONNE Triple Superphosphate TONNE Muriate of Potash 60% TONNE Liquid TONNE Liquid TONNE Mixing Charge (no GST or PST) TONNE ,4-D Amine 600 (564 g/l EC) LITRE Atrazine 480 (480 g/l SU) LITRE Banvel II 480 (480 g/l SN) LITRE Accent 75 DF (75 DF) GRAM Dual II Magnum (915 g/l EC) LITRE Callisto 480 SC (480 g/l SC) LITRE Frontier MAX (720 g/l EC) LITRE MCPA Amine 500 (500 g/l SN) LITRE Pursuit (240 g/l SN) LITRE Halex GT 250 g/l, 25 g/l) LITRE Credit Xtreme (540 g/l SN) LITRE Sencor 75 DF (75% WG) KILOG Select (240 g/l EC) LITRE Basagran (480 g/l SN) LITRE Prowl H2O (455 g/l EC) LITRE Pardner (280 g/l EC) LITRE Lumax EZ (298 g/l, 112 g/l, 29.8 g/l) LITRE Devrinol 50 DF (50% DF) KILOG Assure II (96 g/l EC) LITRE Reflex (240 g/l EC) LITRE Coragen (200 g/l SU) LITRE Malathion 500 EC (500 g/l EC) LITRE Sevin XLR+ (480 g/l LI) LITRE Force 3 G (3% G) KILOG Pounce (384 g/l EC) LITRE Matador 120EC (120 g/l EC) LITRE Delegate (25% WG) GRAM Bravo (500 g/l SC) LITRE Captan 80 W (80% DG) KILOG Headline AMP (146 g/l, 55 g/l LI) LITRE Nova 40 W (40% WP) KILOG Caramba (90 g/l LI) LITRE Ethrel (240 g/l LI) LITRE Exchange Rate:
5 PRICE COMPARISON BETWEEN ONTARIO AND NEARBY AMERICAN STATES FOR OCTOBER 4, 2017 AVERAGE ONTARIO/U.S. PRICE IN CDN DOLLARS AND PERCENT DIFFERENCE ONTARIO PRODUCT UNIT AVERAGE ONTARIO PRICE AVERAGE U.S. PRICE ONTARIO VS U.S. ONTARIO 2017 VS ON 2016 Regular Unleaded Gasoline LITRE % 5.7% Diesel Fuel (coloured) LITRE % 13.4% Propane (farm dryer) LITRE % 22.3% Anhydrous Ammonia (no service) TONNE % Urea 46% TONNE % -0.5% Nitrogen Solution (UAN) 28% TONNE % 10.0% Mono-Ammonium Phosphate TONNE % -2.7% Di-Ammonium Phosphate TONNE % -1.3% Triple Superphosphate TONNE % Muriate of Potash 60% TONNE % 2.9% Liquid TONNE Liquid TONNE % -2.5% Mixing Charge (no GST or PST) TONNE % 2.2% 2,4-D Amine 600 (564 g/l EC) LITRE % 0.1% Atrazine 480 (480 g/l SU) LITRE % 3.7% Banvel II 480 (480 g/l SN) LITRE % 0.3% Accent 75 DF (75 DF) GRAM % 1.3% Dual II Magnum (915 g/l EC) LITRE % 2.0% Callisto 480 SC (480 g/l SC) LITRE % Frontier MAX (720 g/l EC) LITRE % 1.9% MCPA Amine 500 (500 g/l SN) LITRE % -5.6% Pursuit (240 g/l SN) LITRE % -3.7% Halex GT 250 g/l, 25 g/l) LITRE % Credit Xtreme (540 g/l SN) LITRE % Sencor 75 DF (75% WG) KILOG % -19.3% Select (240 g/l EC) LITRE % -2.1% Basagran (480 g/l SN) LITRE % -3.1% Prowl H2O (455 g/l EC) LITRE % 2.5% Pardner (280 g/l EC) LITRE % 1.2% Lumax EZ (298 g/l, 112 g/l, 29.8 g/l) LITRE % Devrinol 50 DF (50% DF) KILOG % 0.4% Assure II (96 g/l EC) LITRE % 1.1% Reflex (240 g/l EC) LITRE % 3.0% Coragen (200 g/l SU) LITRE % Malathion 500 EC (500 g/l EC) LITRE % 2.3% Sevin XLR+ (480 g/l LI) LITRE % 8.2% Force 3 G (3% G) KILOG % 2.5% Pounce (384 g/l EC) LITRE % Matador 120EC (120 g/l EC) LITRE % 1.7% Delegate (25% WG) GRAM % Bravo (500 g/l SC) LITRE % 1.9% Captan 80 W (80% DG) KILOG % -4.3% Headline AMP (146 g/l, 55 g/l LI) LITRE % Nova 40 W (40% WP) KILOG % 2.5% Caramba (90 g/l LI) LITRE % Ethrel (240 g/l LI) LITRE % 4.3% Exchange Rate:
6 Seed Pricing (October 4, 2017) Exchange Rate: Ontario ($CAD) U.S. ($CAD) Ontario vs. U.S. Commodity Unit MIN MAX AVG MIN MAX AVG AVG Wheat 22.7 kg % Corn RR 80,000 seeds % Corn Conventional 80,000 seeds % Soybean RR 140,000 seeds % Soybean Conventional 22.7 kg % U.S. ($USD) Ontario ($USD) U.S. vs. Ontario Commodity Unit MIN MAX AVG MIN MAX AVG AVG Wheat 50 lb % Corn RR 80,000 seeds % Corn Conventional 80,000 seeds % Soybean RR 140,000 seeds % Soybean Conventional 50 lb % Note: The price collected was defined as the cash retail price that a commercial farmer would pay when purchasing a minimum amount of seed. Seed varieties vary by location.
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