The Daily, Tuesday, October 23, 2001. Farm Product Price Index

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Farm Product Price Index

Prices farmers received for their agricultural commodities increased 7.4% in August compared with August 2000, according to data from the Farm Product Price Index (FPPI). This follows a revised year-over-year increase of 5.6% in July and continues the monthly year-over-year increases that began in September 2000.

Prices farmers received for all livestock and animal products climbed 8.9% from August 2000; crop prices rose 5.3%.

The FPPI (1997=100) stood at 100.3 in August, up 1.0% from a revised 99.3 in July.

On a month-over-month basis, the livestock index was up 0.4% from July. The increase in the dairy index more than offset small declines in both the cattle and calves and the hog indexes.

The hog index stood at 108.2 in August, down 0.5% from July; a similar decrease was seen from June to July. Until July, the hog index had climbed every month since January. On a year-over-year basis, hog prices remained strong, rising 18.0% due to strong demand for pork both in Canada and abroad.

The cattle and calves index fell 0.9% in August, the fifth consecutive monthly decrease, although strong international and domestic demand for beef kept cattle and calf prices 8.5% higher than in August 2000. Led by increases in both slaughter and feeder prices, the cattle and calves index has shown monthly year-over-year increases since January 1997.

The crop index rose 1.8% from July to August; all sub-indexes recorded an increase except for grains and specialty crops. The grain index has decreased on a month-to-month basis since May and the specialty crops index since June.

The largest month-to-month gain in the crop sub-indexes was potatoes (+15.8%). The seasonal change in the mix of processing and table potatoes often affects the overall level of the potato index. On a year-over-year basis, the potato index was 2.4% below its August 2000 level. This index has shown monthly year-over-year decreases since September 2000, except in July.

The oilseed index stood at 83.5 in August, a 2.2% increase from July and its highest level since April 1999. Since February 2001, the oilseed index has risen every month; it was 36.2% above the August 2000 level.

The August 2001 issue of Farm Product Price Index, Vol. 1, no. 8 (21-007-XIB, free) is now available on Statistics Canada's Web site (). On the Our products and services page, choose Free publications, then Agriculture.

To order data, or for general information call 1-800-465-1991. 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) Agriculture Division.