Agricultural production costs are forecast to rise over the next decade due to increases in energy, fertiliser and feed prices, according to the OECD.
According to the OECD Compendium of Agri-environmental Indicators, which was published yesterday, higher crude oil prices will translate into rising farm input costs, including fertilisers, energy-to-pump water and pesticides, although this could be offset by increasing shale gas production, which could lower natural gas prices and thus nitrogen fertiliser gas output.
A copy of the report is available here.