PRICE INDEXES SHOW NEED FOR PRICE INCREASES

            Prices paid by farmers and the strong demand for turfgrass may signal increases in turf prices this spring.  Record fuel and fertilizer prices are squeezing profit margins.  Growers have also seen increases in trucking costs as well as other input costs.

            The National Ag Statistics Service (NASS), a branch of USDA publishes prices paid indexes on a monthly basis.  Using 1990-92 as a base period with which to compare prices, they show the following for January 2005:

            Input                         Index

• Fertilizer                       148

• Ag Chemicals             120

• Fuels                            158     

• Farm Supplies            139

• Interest                         105                 

• Taxes                           132

• Wage Rates                161

            The indexes reflect the costs of the inputs now compared to 13-15 years ago.  In other words, the 148 index for fertilizer means that it costs 48% more now than during the 1990-92 period.

            The current strong demand for turfgrass coupled with the somewhat lower inventory for some species may mean slightly higher prices for turfgrass over the next few months.