Farm Product Price Index

Prices received by farmers for their agricultural commodities decreased 11.5% in September compared with September 2002, according to data from the Farm Product Price Index (FPPI).

The livestock index was down 2.5% from September 2002, the fourth consecutive decline since May, when a cow in Alberta tested positive for bovine spongiform encephalopathy (BSE or mad cow disease). The crop index fell 15.3%, the third consecutive month the crop index has fallen on a year-over-year basis. The crop index had not fallen below year-earlier levels since August 2000.

The FPPI (1997=100), stood at 95.1 in September, up 1.2% from August.

The crop index was down 4.3% in September, as all components except oilseeds and vegetables (excluding potatoes) recorded declines from August. Grain and oilseed prices have been trending down this year, as more normal growing conditions resulted in more average production levels, following two consecutive years of drought in parts of Western Canada.

Potatoes showed the largest month-to-month drop in the crop sub-indexes, with a 19.2% seasonal drop in the index for potato prices for September, as a record potato crop hit the market. On a year-over-year basis, the potato index was 5.6% below its September 2002 level. The potato index has shown year-to-year decreases since January. In 2002, potato prices were supported by limited supplies.

The livestock and animal products index increased 7.4% from August to 95.7 in September, the highest it has been since June, when it was at 98.1. The hog index peaked in June at 85.9 and has fallen steadily to 73.7 in September, the lowest since January when it hit 72.4. Increased domestic consumption of beef, as a result of BSE, and a strong Canadian dollar put downward pressure on hog prices. The cattle and calve index remains well below year-earlier levels since May 20, when ruminant exports were shut down because of BSE. Increased prices for slaughter and feeder steers, heifers and calves are reflected in the August-to-September increase in the index. The year-to-year drop in the index for cattle and calves in September was 17.3%.

Available on CANSIM: tables 002-0021 and 002-0022.

Definitions, data sources and methods: survey number 5040.

The September 2003 issue of Farm Product Price Index, Vol. 3, no. 9 (21-007-XIB, free) will be available online soon. From the Our products and services page, under Browse our Internet publications, choose Free, then Agriculture.

For general information or to order data, call 1-800-465-1991. To enquire about the concepts, methods or data quality of this release, contact Gail-Ann Breese (204-983-3445; fax: 204-983-3122; gail-ann.breeese@statcan.gc.ca), Agriculture Division.