ONTARIO FARM INPUT MONITORING PROJECT SURVEY # 1 March 26, 2014 ECONOMICS AND BUSINESS GROUP, RIDGETOWN CAMPUS U of G

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1 ONTARIO FARM INPUT MONITORING PROJECT SURVEY # 1 March 26, 2014 ECONOMICS AND BUSINESS GROUP, RIDGETOWN CAMPUS U of G Background The Ontario Farm Input Monitoring Project is a survey of farm supply stores to collect cash retail prices that commercial farmers pay, when purchasing bulk fuels, fertilizers, and pesticides. Prices are collected on 45 farm inputs from 9 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 using the pre designed survey form. Results (i) Ontario Prices This is the initial survey for On March 26, 2014, the Canadian dollar was lower than the U.S. dollar ($1 C = $ US). Fuel prices showed that Regular Unleaded Gasoline prices averaged $1.15 per litre, Diesel Fuel (coloured) averaged $1.15 per litre and Propane (farm dryer) prices averaged $0.72 per litre. Fertilizer prices showed Anhydrous Ammonia prices ranging from $951 to $965 a tonne with an average price of $963. Urea prices averaged $586 per tonne. Nitrogen Solution (UAN) 28% prices ranged from $320 to $435 with an average price of $404 per tonne. Mono Ammonium Phosphate prices varied from $510 to $780 per tonne with an average price of $703. Muriate of Potash prices averaged $557 per tonne with a range from $503 to $641. With respect to pesticide prices, 2,4 D Amine prices ranged from $9.44 to $11.60 per litre with an average of $ Atrazine prices ranged from $8.00 to $8.93 per litre. Banvel II averaged $34.86 per litre while Dual II Magnum prices averaged $41.95 per litre. The price for Roundup Weather Max ranged from $6.50 to $10.43 with an average of $8.20 per litre. Assure II prices averaged $77.25 per litre while Reflex prices averaged $45.06 per litre. Sevin XLR prices ranged from $16.58 to $19.80 per litre. Bravo prices averaged $10.28 per litre. Ontario product prices when compared to a year ago at this time (survey date: May 29, 2013), showed that fuel prices were up an average of 21%, fertilizer prices were down 9% on average, and pesticide prices as a group were up 3%. The Canadian dollar was down $0.07 or 7% relative to the U.S. dollar from a year ago. Since the previous survey on October 2, 2013, changes in average prices showed that the fuel products group was up 17% while the fertilizer products group was down 5%. Pesticide products as a group were up 2%. The Canadian dollar was down $0.07 or 7% relative to the U.S. dollar. (ii) Comparison Between Ontario and Nearby U.S. States Some of the products higher priced in Ontario include: Regular Unleaded Gasoline +7%; Diesel Fuel +7%; Anhydrous Ammonia +2%; Liquid %; Atrazine +77%; Dual II Magnum +22%; Prowl H2O +4%; and Sevin XLR +8%. Products lower priced in Ontario include: Urea 15%; Nitrogen Solution 10%; Mono Ammonium Phosphate 6%; Roundup Weather Max 17%; and Pardner 12%. The exact implications at the farm level of this variability between Ontario and the U.S. for farm inputs depends greatly on individual producer product selections and purchase timing.

2 Background ONTARIO/U.S. FARM INPUT MONITORING PROJECT SURVEY # 1 March 26, 2014 ECONOMICS AND BUSINESS SECTION, RIDGETOWN CAMPUS U OF G The Ontario/U.S. Farm Input Monitoring Project is a survey of farm supply stores to collect cash retail prices that commercial farmers pay, when purchasing bulk fuels, fertilizers, and pesticides. Prices are collected on 45 farm inputs from 9 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 using the pre designed survey form. Results (i) U.S. Prices This is the initial survey for On March 26, 2014, the Canadian dollar was lower than the U.S. dollar ($1 C = $ US). Fuel prices showed that Regular Unleaded Gasoline prices averaged $3.65 per gallon, Diesel Fuel (farm) averaged $3.65 per gallon and Propane (farm dryer) prices averaged $2.43 per gallon. Fertilizer prices showed Anhydrous Ammonia prices ranging from $750 to $781 a ton with an average price of $767. Urea prices averaged $564 a ton while Nitrogen Solution (UAN) 28% prices averaged $365 per ton. Mono Ammonium Phosphate prices ranged from $530 to $749 with an average price of $611 per ton. Muriate of Potash prices averaged $454 per ton with a range from $424 to $500. With respect to pesticide prices, 2,4 D Amine prices ranged from $16.00 to $31.26 per gallon with an average of $ Atrazine prices averaged $16.47 per gallon while Banvel averaged $88.95 per gallon. Prowl H20 prices ranged from $35.45 to $64.74 per gallon. The price for Roundup Weather Max varied from $26.67 to $41.61 with an average price of $33.69 per gallon. Force 3G prices ranged from $5.10 to $7.41 per pound. U.S. product prices when compared to a year ago at this time (survey date: May 29, 2013), showed that fuel prices on average were up 12%, fertilizer prices were down 14% on average, and pesticide prices on average were down 2%. The Canadian dollar was down $0.07 or 7% relative to the U.S. dollar from a year ago. Since the previous survey on October 2, 2013, changes in average prices showed the fuel products group was up 21%, while fertilizer products as a group were down 1%. Pesticide products as a group were down 3%. The Canadian dollar was down $0.07 or 7% relative to the U.S. dollar. (ii) Comparison Between Ontario and Nearby U.S. States Some of the products higher priced in Ontario include: Regular Unleaded Gasoline +7%; Diesel Fuel +7%; Anhydrous Ammonia +2%; Liquid %; Atrazine +77%; Dual II Magnum +22%; Prowl H2O +4%; and Sevin XLR +8%. Products lower priced in Ontario include: Urea 15%; Nitrogen Solution 10%; Mono Ammonium Phosphate 6%; Roundup Weather Max 17%; and Pardner 12%. The exact implications at the farm level of this variability between Ontario and the U.S. for farm inputs depends greatly on individual producer product selections and purchase timing.

3 DATA COLLECTION METHODOLOGY Survey Details Sample size Method Locations Approximately 27 Ontario and 15 U.S. retail outlets were surveyed. The fertilizer and pesticide prices were obtained by personal visits to a cross section of outlet stores. Petroleum prices were collected by a combination of both personal visit and phone. Refers to geographic trading areas. Terms and Conditions Price Volume Services Levy Petroleum The price collected was defined as the cash retail price an average commercial farmer would pay when purchasing a minimum amount of fuel, fertilizer, and pesticide. Price reductions due to large volumes, bulk purchases, special memberships, or yearend sales incentives were not considered. Price quotes were for cash and carry. All additional services i.e. delivery, testing or application, were excluded from the price quote. The Canadian container recycling levy was not subtracted from the Canadian price. In Ontario the fuel tank and pump is assumed to be owned by the fuel supplier while in the U.S. the tank and pump is owned by the farmer. Price Comparisons Exchange Average Conversion Values GST The March 26, 2014 average noon spot rate for the Bank of Canada was used. i.e. $ Canadian equals $1 U.S. (or $ U.S. equals $1 Canadian) The arithmetic average of all price quotes for each geographic centre was calculated. U.S. prices were converted to their Canadian equivalent by adjusting for exchange rate, measure, and concentration. For mixing cost, $.01 designates no charge. Where applicable, GST was excluded from the input cost.

4 April Price Comparison in Canadian Dollars Between Ontario, Quebec and Nearby American States for Mar 26, 2014 ALL ONT. LOCATIONS ALL U.S. LOCATIONS ONTARIO PRODUCT UNIT MIN MAX AVG MIN MAX AVG Regular Unleaded Gasoline LITRE Diesel Fuel (coloured) LITRE Propane (farm dryer) LITRE Anhydrous Ammonia (no servic TONNE Urea 46% TONNE Nitrogen Solution (UAN) 28% TONNE Ammonium Nitrate 34% TONNE Mono-Ammonium Phosphate TONNE Di-Ammonium Phosphate TONNE Triple Superphosphate TONNE Muriate of Potash 60% TONNE Liquid TONNE Mixing Charge (no GST or PST) TONNE ,4-D Amine 600 (564 g/l EC) LITRE Atrazine 480 (480 g/l SU) LITRE Banvel II 480 (480 g/l SN) LITRE Accent 75 DF (75 DF) GRAM Dual II Magnum (915 g/l EC) LITRE Dual II Magnum (915 g/l EC) bulk LITRE Frontier MAX (720 g/l EC) LITRE MCPA Amine 500 (500 g/l SN) LITRE Pursuit (240 g/l SN) LITRE Reglone (240 g/l SN) LITRE Roundup Weather Max (540 g/l SN) LITRE Sencor 75 DF (75% WG) KILOG Select (240 g/l EC) LITRE Basagran (480 g/l SN) LITRE Prowl H2O (455 g/l EC) LITRE Pardner (280 g/l EC) LITRE Treflan EC (480 g/l EC) LITRE Devrinol 50 DF (50% DF) KILOG Assure II (96 g/l EC) LITRE Reflex (240 g/l EC) LITRE Furadan 480F (480 g/l F) LITRE Malathion 500 EC (500 g/l EC) LITRE Sevin XLR+ (480 g/l LI) LITRE Force 3 G (3% G) KILOG Guthion Solupac (50% WP) KILOG Matador 120EC (120 g/l EC) LITRE Thiodan 4 EC (400 g/l EC) LITRE Bravo (500 g/l SC) LITRE Captan 80 W (80% DG) KILOG Dithane DG Rainshield (80% WP) KILOG Nova 40 W (40% WP) KILOG Gavel 75DF KILOG Ethrel (240 g/l LI) LITRE Exchange Rate:

5 PRICE COMPARISON BETWEEN ONTARIO AND NEARBY AMERICAN STATES FOR March 26, 2014 AVERAGE ONTARIO/U.S. PRICE IN CDN DOLLARS AND PERCENT DIFFERENCE AVERAGE ONTARIO PRICE AVERAGE U.S. PRICE ONTARIO 2014 VS ON 2013 ONTARIO ONTARIO PRODUCT UNIT VS U.S. Regular Unleaded Gasoline LITRE % 3.5% Diesel Fuel (coloured) LITRE % 14.8% Propane (farm dryer) LITRE % 44.0% Anhydrous Ammonia (no service) TONNE % -14.8% Urea 46% TONNE % -8.0% Nitrogen Solution (UAN) 28% TONNE % -7.0% Ammonium Nitrate 34% TONNE % Mono-Ammonium Phosphate TONNE % -7.6% Di-Ammonium Phosphate TONNE % -2.8% Triple Superphosphate TONNE % -3.1% Muriate of Potash 60% TONNE % -13.4% Liquid TONNE % -8.2% Mixing Charge (no GST or PST) TONNE % 16.4% 2,4-D Amine 600 (564 g/l EC) LITRE % -1.1% Atrazine 480 (480 g/l SU) LITRE % 4.2% Banvel II 480 (480 g/l SN) LITRE % 1.1% Accent 75 DF (75 DF) GRAM % -0.1% Dual II Magnum (915 g/l EC) LITRE % 4.0% Dual II Magnum (915 g/l EC) bulk LITRE % 1.3% Frontier MAX (720 g/l EC) LITRE % MCPA Amine 500 (500 g/l SN) LITRE % -3.1% Pursuit (240 g/l SN) LITRE % 0.2% Reglone (240 g/l SN) LITRE % Roundup Weather Max (540 g/l SN) LITRE % 6.3% Sencor 75 DF (75% WG) KILOG % -5.7% Select (240 g/l EC) LITRE % -2.5% Basagran (480 g/l SN) LITRE % 4.1% Prowl H20 (455 g/l EC) LITRE % 2.9% Pardner (280 g/l EC) LITRE % -0.7% Treflan EC (480 g/l EC) LITRE % 3.4% Devrinol 50 DF (50% DF) KILOG % 5.9% Assure II (96 g/l EC) LITRE % 0.5% Reflex (240 g/l EC) LITRE % 3.4% Furadan 480F (480 g/l F) LITRE % Malathion 500 EC (500 g/l EC) LITRE % 7.0% Sevin XLR+ (480 g/l LI) LITRE % 1.0% Force 3 G (3% G) KILOG % 4.1% Guthion Solupac (50% WP) KILOG % 1.2% Matador 120EC (120 g/l EC) KILOG % 2.6% Thiodan 4 EC (400 g/l EC) LITRE % 2.6% Bravo (500 g/l SC) LITRE % 0.5% Captan 80 W (80% DG) LITRE % 14.3% Dithane DG Rainshield (80% WP) KILOG % -2.7% Nova 40 W (40% WP) KILOG % 3.4% Gavel 75DF LITRE % 25.5% Ethrel (240 g/l LI) KILOG % 2.0% Exchange Rate:

6 Seed Pricing (March 26, 2014) Exchange Rate: Ontario ($CAD) U.S. ($CAD) Ontario vs. U.S. Commodity Unit MIN MAX AVG MIN MAX AVG AVG Wheat 22.7 kg % Corn RR 80,000 seeds % Corn Conventional 80,000 seeds % Soybean RR 140,000 seeds % Soybean Conventional 22.7 kg % U.S. ($USD) Ontario ($USD) U.S. vs. Ontario Commodity Unit MIN MAX AVG MIN MAX AVG AVG Wheat 50 lb % Corn RR 80,000 seeds % Corn Conventional 80,000 seeds % Soybean RR 140,000 seeds % Soybean Conventional 50 lb % Note: The price collected was defined as the cash retail price that a commercial farmer would pay when purchasing a minimum amount of seed. Seed varieties vary by location.