Agricultural input costs rise faster than product prices

In September 2026, the prices of agricultural production inputs increased by 10.5% year-on-year, compared to 4.9% for agricultural products at first sale, according to Insee. Energy, cereals and other factors showed significant disparities between input costs and output prices.

Indices show growing divergence

These two indicators, published on October 30 by Insee, show very different rates of evolution for the costs borne by farms and the prices of their productions. The contrast is more pronounced compared to August, where the index of agricultural production inputs purchase prices (IPAMPA) was rising at 8.2% year-on-year, and the index of agricultural products at production (IPPAP) at 2.8%.

Energy prices drive input costs

In the agricultural indices for September published by Insee, energy emerges as the main tension among the detailed items. Its purchase price for farmers increased by 61.6% year-on-year and 10.2% in one month. The institute specifically mentions domestic fuel oil and non-road diesel, in a context of tensions on energy markets.

Intermediate consumption costs climb

The prices of intermediate consumption, which include goods and services used during production, increased by 12.8% year-on-year. Fertilizers, animal feed and seeds, however, do not all evolve at the same rate. The increase in the overall index of production inputs is less strong, at 10.5%, because this includes also investment goods, whose prices increase by 3.7% year-on-year.

Farmers face varied financial pressures

This difference matters for farms that must simultaneously finance their daily operations and the renewal of their equipment. However, an increase in the index does not automatically translate into an identical increase in expenses for each farmer: the weight of fuel, fertilizers or feed varies greatly depending on the productions.

Grain and vegetable prices surge

On the side of prices received at first sale on the market, the evolutions are very contrasting. Grains show an annual increase of 31.6%, after 22.1% in August. Insee notes that the prices of corn have reached their highest level since February 2023, in a context of disappointing yields after summer heatwaves.

Vegetable prices rise sharply

Fresh vegetables increase by 32.3% year-on-year at production. The tomato index rises by 94.8%, that of leeks by 52.7% and that of cucumbers by 40.2%. Potatoes become more expensive by 29.3%, in a context of a low harvest. Conversely, milk prices fall by 10.3% year-on-year, while egg prices rebound by 7.1%.

Sector-specific economic conditions

These variations illustrate why the average agricultural increase of 4.9% does not describe the economic situation of each sector. A dairy farm, a cereal producer and a vegetable grower do not sell the same products and do not purchase the same inputs.

Indices don’t measure profitability directly

The comparison of the two indices constitutes a signal of tension, but it does not directly measure agricultural profitability. The purchase prices and selling prices are based on distinct baskets and weightings. Incomes also depend on the quantities harvested, yields, subsidies, contracts and the organization of each farm.

Production prices differ from retail prices

Another essential distinction for consumers: agricultural prices at production are not the prices paid in supermarkets. Between the farm and the shelf, there are transport, processing, packaging and distribution. Therefore, a 94.8% increase in the price of tomatoes at production does not mean an identical increase in the shopping bill.

Next update expected in November

The next publication of agricultural indices is announced by Insee for November 26, 2026. It will allow to see whether the gap in progress between production inputs and agricultural prices continues after September.