Farm Product Price Index

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Prices farmers received for their commodities rose 11.9% in May compared with May 2010, as both the crops index and livestock and animal products index advanced. May marked the fifth consecutive double-digit increase in an upward trend that started in August 2010.

The prices producers received for crops in May were 20.4% higher compared with the same month in 2010, led by increases in oilseeds, grains, potatoes and specialty crops. At the end of May, the International Grains Council reduced its grains production forecast for this new crop year as unfavorable weather reports raised concern over production. Wet weather and flooding in many parts of the Canadian prairies, Ontario, Quebec and the United States impaired seeding progress, leaving seeded acreage below normal by the end of May.

Oilseed prices had the largest increase at 41.2% over May 2010. Canola represented just over 70% of Canada's oilseed production last fall and its rapid disappearance (exports and domestic crush) this crop year depleted March 31 canola stocks to their lowest level in six years.

The prices producers received for livestock and animal products in May rose 7.8% compared with May 2010, as increases were recorded in all livestock commodities except hogs. Although this was the first year-over-year decrease in the hogs index since March 2010, it remained at its second highest level since the spring of 2004.

In May, the total index declined 1.3% from April, the first decrease since November 2010 as both the crops and the livestock and animal products index were down.

Note: The growth rate of the total Farm Product Price Index (FPPI) is derived from a weighted average of the component indices using a different set of weights in consecutive months; it is not a weighted average of the growth rates of its crop and livestock components. Given this, the growth rate of the composite FPPI can lie outside the growth rate of these components.

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

Definitions, data sources and methods: survey number 5040.

The May 2011 issue of Farm Product Price Index, Vol. 11, no. 5 (21-007-X, free), is now available from the Key resource module of our website under Publications.

For more information, or to order data, call Client Services (toll-free 1-800-465-1991). To enquire about the concepts, methods or data quality of this release, contact Nickeisha Patterson (613-951-3249; fax: 613-951-3868; nickeisha.patterson@statcan.gc.ca), Agriculture Division.