Farm Product Price Index

Prices farmers received for their commodities fell 8.9% in June from the same month a year earlier in the wake of a sharp decline in crop prices, while prices for livestock dipped slightly.

Overall, producers received prices for crops that were 19.2% below levels in June 2004, continuing a downward trend in year-over-year price changes that began in September 2003, according to the Farm Product Price Index. Farmers received lower prices for grains, oilseeds, special crops and fruit.

Prices for livestock and animal products were 0.5% lower in June than they were a year earlier. This was the second consecutive decline in the overall livestock and animal products index following year-over-year increases since June 2004.

Lower hog and egg prices drove the total livestock and animal product index down, while prices rose in June for cattle and calves, poultry and dairy. Gains ranged from 2.7% for poultry to 8.0% for cattle and calves over year earlier levels.

On a monthly basis, prices farmers received for their commodities dropped 2.0% in June from May, as both the overall crops and livestock and animal products indexes recorded losses.

The FPPI (1997=100) stood at 95.2 in June, down from a revised May index of 97.1. The index has been struggling to make gains from the recent low of 93.4 in November 2004, decreasing in three out of the six months this year.

Prices for livestock and animal products were down 1.7% in June from the revised May index, as sinking hog prices more than offset gains in dairy and cattle and calf prices.

Hog prices were down in June, marking the largest decrease since the end of 2003. Ample supplies, a stronger Canadian dollar and lower demand (as the popularity of low-carbohydrate diets fade) have encouraged the price slide.

Cattle and calf prices rose slightly in June for the first time since March when a preliminary injunction was granted by a Montana District Court Judge to temporarily delay the reopening of the border just days before the scheduled March 9^th opening. However, appeals on the preliminary injunction which kept the border closed to live cattle imports were set for July.

The overall crops index was slightly lower in June as both grain and vegetable prices were lower. The grains index was down slightly for the third consecutive month as supplies remained ample. Prices for oilseeds rose slightly in June as concerns were raised over dry growing conditions and the threat of the Asian soybean rust spreading in the United States.

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

Definitions, data sources and methods: survey number 5040.

The June issue of Farm Product Price Index, Vol. 5, no. 6 (21-007-XIE, free) is now available online. 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: 204-983-7543; gail-ann.breese@statcan.gc.ca), Agriculture Division.