Agricultural costs in Germany explode

Agricultural input prices recorded by the Federal Statistical Office (Destatis) had already risen to a new all-time high in January. Now Destatis reports a price increase for commercial products of 3.7 percent for the month of March. Wholesale products are even more expensive by 5.7 percent. The last time there was a similar strong cost explosion was 10 years ago. In the case of commercial products, these are the prices that manufacturers charge ex works - i.e. before these products are further processed or are placed on the market. This makes them a good early indicator for the development of purchase prices for farm inputs - and of course for the price dynamics in the entire economy. Some economists are already warning of galloping inflation. If you take a look at the most recent development in the cost of agricultural inputs, there is actually no room for even higher costs. But farmers know: In the last few weeks, fertilizers, diesel and energy, plant protection and capital ...