Ontario Farm Input Monitoring Project Survey #2, May 30, 2012

ONTARIO FARM INPUT MONITORING PROJECTSURVEY # 2 ‐ May 30, 2012ECONOMICS AND BUSINESS GROUP, RIDGETOWN CAMPUS ‐ U of GBackgroundThe Ontario Farm Input Monitoring Project is a survey of farm supply stores to collect cash retailprices that commercial farmers pay, when purchasing bulk fuels, fertilizers, and pesticides. Prices arecollected on 45 farm inputs from 10 centres in Ontario, 3 in Michigan, 1 in Ohio and 1 in Indiana.Enumerators obtained current pricing from a minimum of 3 retail outlets in their assigned centre usingthe pre‐designed survey form.Results(i) Ontario PricesThis is the second survey for the 2012 year. On May 30, 2012, the Canadian dollar was slightly lowerthan the U.S. dollar ($1 C = $0.9722 US). The Canadian dollar is down $0.05 or 5% relative to the U.S.dollar from a year ago. Ontario product prices when compared to a year ago at this time (survey date:May 25, 2011), show that fuel prices are down an average of 8%, fertilizer prices are up 11% on average,and pesticide prices are up 1% on average.Since the previous survey on May 16, 2012, changes in average prices show the fuel products groupdown 2%, while fertilizer products as a group are down slightly. Pesticide products as a group arerelatively unchanged. The Canadian dollar has decreased $0.02 or 2% relative to the U.S. dollar.On May 30, 2012, Regular Unleaded Gasoline prices ranged from $1.09 to $1.39 per litre with anaverage price of $1.16. Diesel Fuel (coloured) averaged $1.02 per litre with a range of $0.85 to $1.18.Propane (farm dryer) prices averaged $0.46 per litre.Fertilizer prices showed Anhydrous Ammonia prices ranging from $995 to $1,180 a tonne with anaverage price of $1,121. Urea prices ranged from $650 to $820 a tonne. Nitrogen Solution (UAN) 28%prices ranged from $395 to $500 with an average price of $461 per tonne. Mono‐Ammonium Phosphateprices varied from $775 to $931 per tonne with an average price of $822. Muriate of Potash pricesaveraged $724 per tonne with a range from $685 to $825.With respect to pesticide prices, 2,4‐D Amine prices ranged from $8.20 to $11.59 per litre with anaverage of $10.60. Atrazine prices ranged from $7.38 to $9.21 per litre. Banvel II averaged $34.65 perlitre with a range of $30.00 to $42.21. Dual II Magnum prices averaged $39.63 per litre. The price forRoundup Weather Max ranged from $5.40 to $8.70 with an average of $6.78 per litre. Assure II pricesaveraged $77.72 per litre while Reflex prices averaged $42.77 per litre. Sevin XLR prices ranged from$15.00 to $19.80 per litre. Bravo prices averaged $10.21 per litre.(ii) Comparison Between Ontario and Nearby U.S. StatesSome of the products higher priced in Ontario include: Regular Unleaded Gasoline +14%; Diesel Fuel+7%; Anhydrous Ammonia +13%; Mono‐Ammonium Phosphate +6%; Atrazine +75%; Dual II Magnum+15%; and Sevin XLR +22%.Products lower priced in Ontario include: Propane ‐2%; Urea ‐14%; Nitrogen Solution ‐9%; RoundupWeather Max ‐6%; and Pardner/Buctril ‐6%.The exact implications at the farm level of this variability between Ontario and the U.S. for farminputs depends greatly on individual producer product selections and purchase timing.

BackgroundONTARIO/U.S. FARM INPUT MONITORING PROJECTSURVEY # 2 ‐ May 30, 2012ECONOMICS AND BUSINESS SECTION, RIDGETOWN CAMPUS ‐ U OF GThe Ontario/U.S. Farm Input Monitoring Project is a survey of farm supply stores to collect cash retailprices that commercial farmers pay, when purchasing bulk fuels, fertilizers, and pesticides. Prices arecollected on 45 farm inputs from 10 centres in Ontario, 3 in Michigan, 1 in Ohio and 1 in Indiana.Enumerators obtained current pricing from a minimum of 3 retail outlets in their assigned centre usingthe pre‐designed survey form.Results(i) U.S. PricesThis is the second survey for the 2012 year. On May 30, 2012, the Canadian dollar was slightlylower than the U.S. dollar ($1 C = $0.9722 US). The Canadian dollar is down $0.05 or 5% relative to theU.S. dollar from a year ago. U.S. product prices when compared to a year ago at this time (survey date:May 25, 2011), show that fuel prices are down an average of 7%, fertilizer prices are up 6% on average,and pesticide prices are up 4% on average.Since the previous survey on May 16, 2012, changes in average prices show the fuel products groupdown 3%, while fertilizer products as a group are relatively unchanged. Pesticide products as a group arealso relatively unchanged. The Canadian dollar has decreased $0.02 or 2% relative to the U.S. dollar.On May 30, 2012, Regular Unleaded Gasoline prices ranged from $3.29 to $3.93 per gallon with anaverage price of $3.75. Diesel Fuel (farm) averaged $3.51 per gallon with a range of $3.32 to $3.74.Propane (farm dryer) prices averaged $1.72 per gallon.Fertilizer prices showed Anhydrous Ammonia prices ranging from $810 to $950 a ton with an averageprice of $872. Urea prices ranged from $655 to $895 a ton. Nitrogen Solution (UAN) 28% prices averaged$445 per ton. Mono‐Ammonium Phosphate prices ranged from $610 to $760 with an average price of$684 per ton. Muriate of Potash prices averaged $649 per ton with a range from $590 to $818.With respect to pesticide prices, 2,4‐D Amine prices ranged from $15.97 to $27.43 per gallon with anaverage of $21.34. Atrazine prices averaged $17.03 per gallon while Banvel averaged $54.59 per gallon.Dual II Magnum prices ranged from $103.00 to $146.67 per gallon. The price for Roundup Weather Maxvaried from $18.24 to $31.20 with an average price of $26.68 per gallon. Force 3G prices ranged from$4.60 to $5.96 per pound.(ii) Comparison Between Ontario and Nearby U.S. StatesSome of the products higher priced in Ontario include: Regular Unleaded Gasoline +14%; Diesel Fuel+7%; Anhydrous Ammonia +13%; Mono‐Ammonium Phosphate +6%; Atrazine +75%; Dual II Magnum+15%; and Sevin XLR +22%.Products lower priced in Ontario include: Propane ‐2%; Urea ‐14%; Nitrogen Solution ‐9%; RoundupWeather Max ‐6%; and Pardner/Buctril ‐6%.The exact implications at the farm level of this variability between Ontario and the U.S. for farminputs depends greatly on individual producer product selections and purchase timing.

DATA COLLECTION METHODOLOGYSurvey DetailsSample sizeMethodLocations‐ Approximately 30 Ontario and 15 U.S. retail outlets were surveyed.‐ The fertilizer and pesticide prices were obtained by personal visits to a crosssection of outlet stores. Petroleum prices were collected by a combination ofboth personal visit and phone.‐ Refers to geographic trading areas.Terms and ConditionsPriceVolumeServicesLevyPetroleum‐ The price collected was defined as the cash retail price an average commercialfarmer would pay when purchasing a minimum amount of fuel, fertilizer, andpesticide.‐ Price reductions due to large volumes, bulk purchases, special memberships,or year end sales incentives were not considered. Price quotes were for cashand carry.‐ All additional services i.e. delivery, testing or application, were excluded fromthe price quote.‐ The Canadian container recycling levy was not subtracted from the Canadianprice.‐ In Ontario the fuel tank and pump is assumed to be owned by the fuelsupplier while in the U.S. the tank and pump is owned by the farmer.Price ComparisonsExchangeAverageConversionValuesGST‐ The May 30, 2012 average noon spot rate for the Bank of Canada was used.i.e. $1.0286 Canadian equals $1 U.S. (or $0.9722 U.S. equals $1 Canadian)‐ The arithmetic average of all price quotes for each geographic centre wascalculated.‐ U.S. prices were converted to their Canadian equivalent by adjusting forexchange rate, measure, and concentration.‐ For mixing cost, $.01 designates no charge.‐ Where applicable, GST was excluded from the input cost.

Price Comparison in Canadian Dollars Between Ontario, Quebec andNearby American States for May 30, 2012Thursday, June 07, 2012ALL ONT. LOCATIONS ALL Quebec. LOCATIONS ALL U.S. LOCATIONSONTARIO PRODUCT UNIT MIN MAX AVG MIN MAX AVG MIN MAX AVGRegular Unleaded Gasoline LITRE 1.09 1.39 1.16 0.89 1.07 1.02Diesel Fuel (coloured) LITRE 0.85 1.18 1.02 0.90 1.02 0.95Propane (farm dryer) LITRE 0.34 0.62 0.46 0.35 0.54 0.47Anhydrous Ammonia 82-0-0 (no servic TONNE 995.00 1180.00 1121.43 918.40 1077.13 988.32Urea 46% TONNE 650.00 820.00 743.73 742.66 1014.77 869.31Nitrogen Solution (UAN) 28% TONNE 395.00 500.00 460.93 470.54 555.57 504.68Ammonium Nitrate 34% TONNE 579.00 625.00 598.00Mono-Ammonium Phosphate 11-52-0 TONNE 775.00 930.60 821.73 691.63 861.71 775.10Di-Ammonium Phosphate 18-46-0 TONNE 785.00 860.00 816.25 725.65 850.37 776.67Triple Superphosphate 0-46-0 TONNE 820.00 911.00 845.75 731.32 731.32 731.32Muriate of Potash 60% TONNE 685.00 825.00 723.94 668.96 927.47 735.56Liquid 10-34-0 TONNE 595.00 1500.00 1048.87 839.03 1020.44 936.23Mixing Charge (no GST or PST) TONNE 6.00 20.00 12.00 5.67 22.68 9.302,4-D Amine 600 (564 g/l EC) LITRE 8.20 11.59 10.60 5.11 8.77 6.83Atrazine 480 (480 g/l SU) LITRE 7.38 9.21 8.09 3.55 7.08 4.63Banvel II 480 (480 g/l SN) LITRE 30.00 42.21 34.65 9.93 18.51 14.84Accent 75 DF (75 DF) GRAM 1.88 2.49 2.17 1.26 1.80 1.46Dual II Magnum (915 g/l EC) LITRE 36.79 41.25 39.63 27.99 39.86 34.58Dual II Magnum (915 g/l EC) bulk LITRE 34.00 40.16 38.85 27.99 35.12 32.00Frontier MAX (720 g/L EC) LITRE 53.44 84.33 64.56 24.22 24.22 24.22MCPA Amine 500 (500 g/l SN) LITRE 5.00 13.80 10.65 6.08 8.69 7.22Pursuit (240 g/l SN) LITRE 124.85 192.42 143.52 145.03 166.39 155.71Reglone (240 g/l SN) LITRE 24.26 32.20 29.10Roundup Weather Max (540 g/l SN) LITRE 5.40 8.70 6.78 4.96 8.48 7.25Sencor 75 DF (75% WG) KILOG 56.00 70.00 65.72 33.22 39.96 36.41Select (240 g/L EC) LITRE 91.33 108.00 106.21 21.33 47.29 30.23Basagran (480 g/l SN) LITRE 30.11 33.85 31.23 21.13 33.87 28.02Prowl (400 g/l EC) LITRE 11.18 13.65 12.08 7.56 15.51 11.66Pardner (280 g/l EC) LITRE 16.25 23.25 20.76 17.97 26.58 22.09Treflan EC (480 g/l EC) LITRE 13.54 19.05 16.30 6.80 9.89 8.04Devrinol 50 DF (50% DF) KILOG 31.44 38.67 34.03 26.40 30.64 28.67Assure II (96 g/L EC) LITRE 76.50 80.04 77.72 25.36 33.40 30.23Reflex (240 g/L EC) LITRE 40.99 45.60 42.77 35.01 37.98 36.41Furadan 480F (480 g/l F) LITRE 40.56 45.00 42.78 25.39 25.39 25.39Malathion 500 EC (500 g/l EC) LITRE 11.32 28.50 19.12 6.71 14.21 9.62Sevin XLR+ (480 g/l LI) LITRE 15.00 19.80 17.55 12.83 16.29 14.39Force 3 G (3% G) KILOG 14.34 16.85 15.78 10.43 13.52 12.32Guthion Solupac (50% WP) KILOG 28.55 28.55 28.55 26.44 34.01 30.71Matador 120EC (120 g/L EC) LITRE 165.89 201.43 182.72 94.23 141.58 112.08Thiodan 4 EC (400 g/L EC) LITRE 17.71 21.91 19.44 10.57 12.88 11.70Bravo (500 g/l SC) LITRE 8.36 12.19 10.21 4.65 7.96 6.91Captan 80 W (80% DG) KILOG 20.00 28.60 24.52 13.83 22.00 18.53Dithane DG Rainshield (80% WP) KILOG 6.75 9.30 7.91 8.62 12.99 10.81Nova 40 W (40% WP) KILOG 213.48 269.64 253.04 128.80 180.69 154.75Gavel 75DF KILOG 15.25 27.94 20.45 14.60 24.31 20.39Ethrel (240 g/l LI) LITRE 17.70 22.13 19.84 15.24 15.59 15.42Exchange Rate: 1.0286

PRICE COMPARISON BETWEEN ONTARIO AND NEARBY AMERICAN STATES FOR MAY 30, 2012AVERAGE ONTARIO/U.S. PRICE IN CDN DOLLARS AND PERCENT DIFFERENCEAVERAGEONTARIOPRICEAVERAGEU.S.PRICEONTARIO2012 VSON 2011ONTARIOONTARIO PRODUCTUNITVS U.S.Regular Unleaded Gasoline LITRE 1.16 1.02 13.59% -2.16%Diesel Fuel (coloured) LITRE 1.02 0.95 6.67% -0.82%Propane (farm dryer) LITRE 0.46 0.47 -2.25% -21.49%Anhydrous Ammonia 82-0-0 (no service) TONNE 1,121.43 988.32 13.47% 17.12%Urea 46% TONNE 743.73 869.31 -14.45% 31.44%Nitrogen Solution (UAN) 28% TONNE 460.93 504.68 -8.67% 17.72%Ammonium Nitrate 34% TONNE 598.00 2.34%Mono-Ammonium Phosphate 11-52-0 TONNE 821.73 775.10 6.02% 0.34%Di-Ammonium Phosphate 18-46-0 TONNE 816.25 776.67 5.10% 1.24%Triple Superphosphate 0-46-0 TONNE 845.75 731.32 15.65% 3.98%Muriate of Potash 60% TONNE 723.94 735.56 -1.58% 8.30%Liquid 10-34-0 TONNE 1,048.87 936.23 12.03% 17.73%Mixing Charge (no GST or PST) TONNE 12.00 9.30 29.06% 23.08%2,4-D Amine 600 (564 g/l EC) LITRE 10.60 6.83 55.31% 8.49%Atrazine 480 (480 g/l SU) LITRE 8.09 4.63 74.89% 6.04%Banvel II 480 (480 g/l SN) LITRE 34.65 14.84 133.54% -1.03%Accent 75 DF (75 DF) GRAM 2.17 1.46 48.86% 0.20%Dual II Magnum (915 g/l EC) LITRE 39.63 34.58 14.61% 4.07%Dual II Magnum (915 g/l EC) bulk LITRE 38.85 32.00 21.40% 3.99%Frontier MAX (720 g/L EC) LITRE 64.56 24.22 166.55% 3.42%MCPA Amine 500 (500 g/l SN) LITRE 10.65 7.22 47.63% 1.61%Pursuit (240 g/l SN) LITRE 143.52 155.71 -7.83% -16.41%Reglone (240 g/l SN) LITRE 29.10 -3.67%Roundup Weather Max (540 g/l SN) LITRE 6.78 7.25 -6.45% 0.43%Sencor 75 DF (75% WG) KILOG 65.72 36.41 80.51% 1.62%Select (240 g/L EC) LITRE 106.21 30.23 251.28% -4.16%Basagran (480 g/l SN) LITRE 31.23 28.02 11.45% -1.38%Prowl (400 g/l EC) LITRE 12.08 11.66 3.56% 4.15%Pardner (280 g/l EC) LITRE 20.76 22.09 -6.03% 0.40%Treflan EC (480 g/l EC) LITRE 16.30 8.04 102.84% -3.71%Devrinol 50 DF (50% DF) KILOG 34.03 28.67 18.72% 6.79%Furadan 480F (480 g/l F) LITRE 42.78 25.39 68.49% -0.14%Malathion 500 EC (500 g/l EC) LITRE 19.12 9.62 98.66% -9.69%Sevin XLR+ (480 g/l LI) LITRE 17.55 14.39 21.95% 1.03%Force 3 G (3% G) KILOG 15.78 12.32 28.15% 4.32%Guthion Solupac (50% WP) KILOG 28.55 30.71 -7.02% 0.71%Matador 120EC (120 g/L EC) KILOG 182.72 112.08 63.03% 3.55%Thiodan 4 EC (400 g/L EC) LITRE 19.44 11.70 66.22% -0.13%Bravo (500 g/l SC) LITRE 10.21 6.91 47.77% -3.65%Captan 80 W (80% DG) LITRE 24.52 18.53 32.36% 5.21%Dithane DG Rainshield (80% WP) KILOG 7.91 10.81 -26.80% -6.06%Nova 40 W (40% WP) KILOG 253.04 154.75 63.52% 5.61%Ethrel (240 g/l LI) KILOG 19.84 15.42 28.70% -1.20%Assure II (96 g/L EC) LITRE 77.72 30.23 157.11% 0.67%Reflex (240 g/L EC) LITRE 42.77 36.41 17.46% 4.51%Gavel 75DF LITRE 20.45 20.39 0.29% 10.61%Exchange Rate: 1.0286

Seed Pricing, May 30, 2012 Exchange Rate: 1.0286Ontario ($CAD) U.S. ($CAD) Ontario vs. U.S.Commodity Unit MIN MAX AVG MIN MAX AVG AVGWheat 22.7 kg 18.16 27.69 24.87 12.86 20.06 16.00 55.44%Corn RR 80,000 seeds 219.20 350.00 274.18 226.29 372.35 277.17 ‐1.08%Corn Conventional 80,000 seeds 170.00 228.00 202.74 153.78 259.21 207.52 ‐2.30%Soybean RR 140,000 seeds 45.00 67.00 62.58 43.97 63.77 55.16 13.45%Soybean Conventional 22.7 kg 25.95 58.95 40.34 18.26 55.54 37.48 7.61%U.S. ($USD) Ontario ($USD) U.S. vs. OntarioCommodity Unit MIN MAX AVG MIN MAX AVG AVGWheat 50 lb 12.50 19.50 15.56 17.66 26.92 24.18 ‐55.44%Corn RR 80,000 seeds 220.00 362.00 269.46 213.11 340.27 266.55 1.08%Corn Conventional 80,000 seeds 149.50 252.00 201.75 165.27 221.66 197.10 2.30%Soybean RR 140,000 seeds 42.75 62.00 53.63 43.75 65.14 60.84 ‐13.45%Soybean Conventional 50 lb 17.75 54.00 36.44 25.23 57.31 39.22 ‐7.61%Note: The price collected was defined as the cash retail price that a commercial farmer would pay when purchasing aminimum amount of seed. Seed varieties vary by location.