The Anglia Farmers Agricultural Inflation Index, published on Friday, revealed that farm inputs costs have remained steady over the past six months.

The index was first launched by Anglia Farmers in 2006, to help assess the cost of farming production and guide negotiations within the wider food industry. The figures are reached by examining nine 'cost centres' and 132 cost items to establish the areas in which farm spending is changing, and by what degree.

Representing inflation experienced since August 2013 to the end of January 2013, the latest Aginflation figure of 0.08 percent indicates minimal overall change in costs over the past six months, and a marked fall from the last set of figures published in August last year.

The figures reflect a period of relative stability. Costs for fertiliser, seed, machinery and animal feed and medicine have all eased, though all fell by less than -0.5 percent.

However, there are some potentially concerning revelations; figures showing the cost of production against retail prices (RPI) reveal that the cost of sugar beet production has fallen by only -0.6 percent while the RPI for granulated sugar has decreased by -6.52 percent – and in a year when farmers have received the lowest ever price per ton in real terms.

The cost of producing potatoes has also fallen by -2.73 percent while RPI has fallen further, by -7.62 percent.

However, two product areas appear to have bucked the trend – the price of producing cereals has risen very slightly by 0.32 percent while RPI has increased by 3.19 percent, and beef and lamb production costs have increased by 1.2 percent while the RPI has risen slightly further, by 1.55 percent.

The RPI of milk has remained at 0 percent since 2011 but costs for dairy farmers have shown another increase, with costs up 0.31percent (this is a significantly lower rise that the 4.6 percent increase in production costs last year.)

Costs in the index are noted when they are experienced rather than when the inputs are used and the prices reflect prudent purchasing practice so may include, for example, fertiliser purchased but not applied until the following year.