The Daily, Wednesday, May 30, 2001. Farm Product Price Index

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Farm Product Price Index

Prices that farmers received for their agricultural commodities in March increased 2.7% from February. A 4.0% increase in the livestock and animal products index was responsible for most of the increase as the crops index inched up 0.5%.

On a year-over-year basis, the Farm Product Price Index (FPPI) in March was up 3.2% from March last year. The FPPI (1997=100) for Canada stood at 99.2 in March.

The index for all livestock and animal products was 115.9. All livestock sub-indexes recorded an increase in March except dairy, which dropped 1.7% from February.

The index for hogs recorded the largest month-to-month increase (+16.6%) to 98.3. Hog prices have increased on strong demand for pork both domestically and internationally. Hog prices had been volatile over the last few years, spurred by fluctuating production and slaughter capacities. The hog index had plummeted from a peak of 114.4 in July 1997 to 30.0 in December 1998; it has since regained most of that loss.

The cattle and calf index, remained strong, increasing to 139.3 in March. On a year-over-year basis, the index for cattle and calves has increased every month since January 1997.

The index comprising all crops stood at 80.6 in March as increases in the oilseed, special crop and horticulture indexes more than offset the decline in the grain index.

The total crops index has recorded year-over-year declines every month since August 1998 as prices for grains and oilseeds have come under intense pressure because of abundant world supplies. The oilseed index rose for the second consecutive month to 70.0, the highest level since October 1999, but still remained below the annual indexes of the last eight years. The grains index in March 2001 was 72.1, down slightly from 72.7 in February.

The new Farm Product Price Index (FPPI) was reformulated with the February 2001 release, to capture the continual shift in agriculture commodities produced and sold. It also introduces the seasonal basket concept. The new index uses 1997 as the time base (1997=100) and covers more agriculture commodities.

The March 2001 issue of Farm Product Price Index (21-007-XIB, free) is available on Statistics Canada's Web site (www.statcan.ca). On the Our products and services page, choose Free Publications, then Agriculture.

To order data, or for general information call 1-800-465-1991. For more information, or to enquire about the concepts, methods or data quality of this release, contact Bernie Rosien (613-951-2441; fax: 613-951-3868; bernie.rosien@statcan.gc.ca) or Gail-Ann Breese (204-983-3445; fax: 204-983-3122; gail-ann.breese@statcan.gc.ca), Agriculture Division.