Farm Product Price Index, September 2024

The Farm Product Price Index (FPPI) fell 5.9% in September compared with the same month one year earlier. The drop in the crops index was behind the FPPI decline, as it more than offset the gain in the livestock and animal products index.

Source: Table 32-10-0098-01.

Chart 1: 12-month change in the Farm Product Price Index

Source: Table 32-10-0098-01.

Lower prices for major grains and oilseeds lead to drop in the crops index

The crops index was down 13.1% in September, the second consecutive year-over-year decrease. The decline in the crops index was mainly attributable to lower prices for major grains, oilseeds and specialty crops.

In September, the grain index fell 22.9 compared with the same month one year earlier. The decline was driven by lower prices for all major grains, led by durum (-39.5%), barley (-25.1%) and corn (-23.6%). Competition from other exporting countries led to a drop in demand for Canadian grains. Canadian exports for most grains were lower in the first three quarters of 2024 compared with the same period in 2023.

The oilseeds index (-18.8%) also decreased in September 2024 compared with the same month one year earlier, owing to lower prices for canola (-19.8%) and soybeans (-17.1%). This marked the fifth consecutive month of year-over-year declines in the oilseeds index. Higher soybean production in the United States put downward pressure on oilseed prices in the 2024/2025 crop year.

In September, the specialty crops index (-6.9%) also reported a decline compared with September 2023. Prices were lower across all specialty crops in September 2024, led by chickpeas (-17.5%).

Meanwhile, the indexes for fresh fruit (+12.3%), fresh potatoes (+8.6%) and fresh vegetables (+2.0%) recorded gains, moderating the year-over-year decline in the crops index in September 2024.

The livestock and animal products index rises, supported by strong demand for cattle

In September, the livestock and animal products index increased 3.3% compared with the same month one year earlier. This marked the sixth consecutive year-over-year gain for the month of September.

The cattle and calves price index rose 6.7% from one year earlier in September. Cattle prices were supported by a smaller cattle herd and strong demand, including exports of live cattle. In the third quarter of 2024, both the value (+38.0%) and volume (+19.0%) of live cattle exported to the United States for immediate slaughter were up compared with the same quarter in 2023. The gain in the volume of cattle exported was largely driven by an increase in steers (+64.9%) and heifers (+8.9%) exported for immediate slaughter.

In September 2024, the hogs (+0.2%) and dairy (+3.7%) indexes reported gains compared with September 2023, while the poultry (-0.8%) and eggs (-0.4%) indexes both declined.

Table 1: Farm Product Price Index