Rural motorists are enjoying the fall in prices at forecourt fuel pumps that should also lead to lower distribution costs of supplies to local shops.
While there is a frustrating time lag in the way falling oil prices filter through to the red diesel market and the wider supply chain, farmers should continue to see prices slide in the coming months.
Depending on the deals negotiated, red diesel that had soared to about 72p per litre (ppl) has fallen to around 45ppl, while kerosene for central heating systems is currently being bought for 36ppl as opposed to 63p at its peak.
Lower oil prices may bring some cheer, but the real focus of attention must remain on tackling the pressure farmers face with the current volatile markets for their produce.
Fuel represents about 5% of the average farm input costs, while fertiliser is around 8% of total costs, in comparison to, say, feed which can be more than 50% in the livestock sector.
Nevertheless, it takes about 38 litres of diesel to plough a hectare, another 9 litres or so for cultivations and spraying, and about 25 litres to combine the crop and cart the grain away. The 37% reduction in the cost of red diesel since its peak should save an arable farmer about £19 per hectare.
Copa-Cogeca has welcomed a draft report debated in the Agriculture Committee on Wednesday on the New EU Forestry Strategy highlighting the need to better promote the sector and its important role to create green jobs and boost growth in rural areas.
"This is something Copa-Cogeca has long been calling for," said Copa-Cogeca Secretary-General Pekka Pesonen. "Only a competitive and economically viable European forest sector is able to deliver," he added.
Mr Pesonen went on: "Forests cover 40% of the EU area and have a huge potential to boost the economy, combat climate change, ensure biodiversity, water quality and resource efficiency. Wood plays a key role in helping the EU to reach its renewable energy targets."
The draft report highlights the huge contribution sustainable forest management makes to combating climate change and for the bio-economy, and how it is to better use the instruments available to increase the potential for innovation.
Market round-up
United Auctions sold 295 store heifers at Stirling on Wednesday to a top of 277.1p per kg and an average of 226.3p (+1.1p on the week), while 483 store, beef-bred bullocks peaked at 292.6p and levelled at 235.8p (+6.5p). One-hundred-and-forty-three store, B&W bullocks sold to 185.3p and averaged 174.3p (+6.8p).
In the rough ring 148 cows averaged 123.7p.
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