ONTARIO FARM INPUT MONITORING PROJECT SURVEY # 1 May 25, 2016 ECONOMICS AND BUSINESS GROUP, RIDGETOWN CAMPUS - U of G

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1 ONTARIO FARM INPUT MONITORING PROJECT SURVEY # 1 May 25, 2016 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 first survey for On May 25, 2016, the Canadian dollar was lower than the U.S. dollar ($1 C = $ US). Fuel prices showed that Regular Unleaded Gasoline prices averaged $0.95 per litre, Diesel Fuel (coloured) averaged $0.81 per litre and Propane (farm dryer) prices averaged $0.38 per litre. Fertilizer prices showed Anhydrous Ammonia prices ranging from $870 to $1,025 a tonne with an average price of $989. Urea prices averaged $573 per tonne. Nitrogen Solution (UAN) 28% prices ranged from $325 to $431 with an average price of $374 per tonne. Mono-Ammonium Phosphate prices varied from $720 to $875 per tonne with an average price of $779. Muriate of Potash prices averaged $542 per tonne with a range from $465 to $625. With respect to pesticide prices, 2,4-D Amine prices ranged from $9.15 to $12.53 per litre with an average of $ Atrazine prices ranged from $8.50 to $10.00 per litre. Banvel II averaged $28.12 per litre while Dual II Magnum prices averaged $42.55 per litre. The price for Roundup Weather Max ranged from $6.45 to $9.50 with an average of $8.34 per litre. Assure II prices averaged $79.18 per litre while Reflex prices averaged $47.52 per litre. Sevin XLR prices ranged from $23.50 to $26.50 per litre. Bravo prices averaged $10.61 per litre. Ontario product prices when compared to a year ago at this time (survey date: May 27, 2015), showed that fuel prices as a group were down 5%, fertilizer prices were down 3% on average, and pesticide prices as a group were up 3%. The Canadian dollar was up $0.06 or 5% relative to the U.S. dollar from a year ago. Since the previous survey on October 7, 2015, changes in average prices showed that the fuel products group was up 4% while fertilizer products as a group were down 5%. Pesticide products as a group were up 2%. The Canadian dollar was up less than $0.01 or 0.4% 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 +14%; Diesel Fuel +13%; Anhydrous Ammonia +6%; Atrazine +75%; Dual II Magnum +13%; Basagran +36%; and Sevin XLR +23%. Products lower priced in Ontario include: Propane -2%; Nitrogen Solution -7%; Pursuit -9%; Prowl -9%; and Roundup Weather Max -10%. 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 # 1 May 25, 2016 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 first survey for On May 25, 2016, the Canadian dollar was lower than the U.S. dollar ($1 C = $ US). Fuel prices showed that Regular Unleaded Gasoline prices averaged $2.43 per gallon, Diesel Fuel (farm) averaged $2.07 per gallon and Propane (farm dryer) prices averaged $1.12 per gallon. Fertilizer prices showed Anhydrous Ammonia prices ranging from $595 to $680 a ton with an average price of $647. Urea prices averaged $381 a ton while Nitrogen Solution (UAN) 28% prices averaged $278 per ton. Mono-Ammonium Phosphate prices ranged from $470 to $520 with an average price of $489 per ton. Muriate of Potash prices averaged $329 per ton with a range from $282 to $360. With respect to pesticide prices, 2,4-D Amine prices ranged from $9.93 to $21.40 per gallon with an average of $ Atrazine prices averaged $15.37 per gallon while Dual II Magnum averaged $ per gallon. Prowl H20 prices ranged from $36.89 to $57.40 per gallon. The price for Assure II varied from $80.80 to $ with an average price of $95.98 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: May 27, 2015), showed that fuel prices on average were down 14%, fertilizer prices were down 19% on average, and pesticide prices on average were down 2%. The Canadian dollar was up $0.06 or 5% relative to the U.S. dollar from a year ago. Since the previous survey on October 7, 2015, changes in average prices showed that the fuel products group was down 3% while fertilizer products as a group were down 15%. Pesticide products as a group were down 2%. The Canadian dollar was up less than $0.01 or 0.4% 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 +14%; Diesel Fuel +13%; Anhydrous Ammonia +6%; Atrazine +75%; Dual II Magnum +13%; Basagran +36%; and Sevin XLR +23%. Products lower priced in Ontario include: Propane -2%; Nitrogen Solution -7%; Pursuit -9%; Prowl -9%; and Roundup Weather Max -10%. 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 May 25, 2016 average noon spot 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 June Price Comparison in Canadian Dollars Between Ontario and Nearby American States for May 25, 2016 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 Ammonium Nitrate 34% TONNE Mono-Ammonium Phosphate TONNE Di-Ammonium Phosphate TONNE Triple Superphosphate TONNE Muriate of Potash 60% 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 Dual II Magnum (915 g/l EC) bulk LITRE Frontier MAX (720 g/l EC) LITRE MCPA Amine 500 (500 g/l SN) LITRE Pursuit (240 g/l SN) LITRE Reglone (240 g/l SN) LITRE Roundup Weather Max (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 Treflan EC (480 g/l EC) LITRE Devrinol 50 DF (50% DF) KILOG Assure II (96 g/l EC) LITRE Reflex (240 g/l EC) LITRE Furadan 480F (480 g/l F) LITRE Malathion 500 EC (500 g/l EC) LITRE Sevin XLR+ (480 g/l LI) LITRE Force 3 G (3% G) KILOG Guthion Solupac (50% WP) KILOG Matador 120EC (120 g/l EC) LITRE Thiodan 4 EC (400 g/l EC) LITRE Bravo (500 g/l SC) LITRE Captan 80 W (80% DG) KILOG Dithane DG Rainshield (75% DF) KILOG Nova 40 W (40% WP) KILOG Gavel 75DF KILOG Ethrel (240 g/l LI) LITRE Exchange Rate: 1.309

5 PRICE COMPARISON BETWEEN ONTARIO AND NEARBY AMERICAN STATES FOR MAY 25, 2016 AVERAGE ONTARIO/U.S. PRICE IN CDN DOLLARS AND PERCENT DIFFERENCE AVERAGE ONTARIO PRICE AVERAGE U.S. PRICE ONTARIO 2016 VS ON 2015 ONTARIO ONTARIO PRODUCT UNIT VS U.S. Regular Unleaded Gasoline LITRE % -7.6% Diesel Fuel (coloured) LITRE % -14.4% Propane (farm dryer) LITRE % 8.6% Anhydrous Ammonia (no service) TONNE % -8.6% Urea 46% TONNE % -7.0% Nitrogen Solution (UAN) 28% TONNE % -12.4% Ammonium Nitrate 34% TONNE Mono-Ammonium Phosphate TONNE % -2.7% Di-Ammonium Phosphate TONNE % 4.6% Triple Superphosphate TONNE % Muriate of Potash 60% TONNE % -12.3% Liquid TONNE % 7.8% Mixing Charge (no GST or PST) TONNE % 11.1% 2,4-D Amine 600 (564 g/l EC) LITRE % -2.8% Atrazine 480 (480 g/l SU) LITRE % 4.4% Banvel II 480 (480 g/l SN) LITRE % -19.8% Accent 75 DF (75 DF) GRAM % -3.4% Dual II Magnum (915 g/l EC) LITRE % 2.6% Dual II Magnum (915 g/l EC) bulk LITRE % -0.7% Frontier MAX (720 g/l EC) LITRE % MCPA Amine 500 (500 g/l SN) LITRE % 11.6% Pursuit (240 g/l SN) LITRE % 0.0% Reglone (240 g/l SN) LITRE % Roundup Weather Max (540 g/l SN) LITRE % -0.6% Sencor 75 DF (75% WG) KILOG % 0.7% Select (240 g/l EC) LITRE % -0.7% Basagran (480 g/l SN) LITRE % 1.8% Prowl H20 (455 g/l EC) LITRE % 5.0% Pardner (280 g/l EC) LITRE % 5.2% Treflan EC (480 g/l EC) LITRE % 0.1% Devrinol 50 DF (50% DF) KILOG % 3.7% Assure II (96 g/l EC) LITRE % 0.5% Reflex (240 g/l EC) LITRE % 2.7% Furadan 480F (480 g/l F) LITRE Malathion 500 EC (500 g/l EC) LITRE % 26.7% Sevin XLR+ (480 g/l LI) LITRE % 18.9% Force 3 G (3% G) KILOG % 3.1% Guthion Solupac (50% WP) KILOG Matador 120EC (120 g/l EC) KILOG % 3.0% Thiodan 4 EC (400 g/l EC) LITRE Bravo (500 g/l SC) LITRE % 4.2% Captan 80 W (80% DG) LITRE % -2.8% Dithane DG Rainshield (80% WP) KILOG % 15.1% Nova 40 W (40% WP) KILOG % 1.7% Gavel 75DF LITRE % 9.7% Ethrel (240 g/l LI) KILOG % Exchange Rate: 1.309

6 Seed Pricing (May 25, 2016) 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.