Farm Product Price Index, December 2024

In December, the Farm Product Price Index fell 1.2% compared with the same month a year earlier. The decline was mainly attributable to decreases in the grains and oilseeds indexes, which offset gains in the livestock and animal products index.

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 crops index

The total crops index fell 11.8% in December, posting its second consecutive year-over-year decrease. The drop was mainly driven by a decline in the grains and oilseeds indexes, which also recorded their second consecutive year-over-year decrease in December.

In December, the grains index was down 16.8% compared with the same month a year earlier. Lower prices for all major grains drove the decline, led by durum (-31.8%). Higher domestic production in 2024 (+43.6%) put downward pressure on prices.

The oilseeds index fell 15.5% compared with the same month the previous year in December, on lower prices for soybeans (-20.2%) and canola (-14.3%). Increased global oilseeds supply and lower exports of Canadian soybeans and canola in December exerted downward pressure on prices. This marked the 23rd consecutive month of decrease in the oilseeds index.

In December, the specialty crops index (-13.0%) also decreased compared with December 2023. The drop in the specialty crops index was driven by lower prices for all specialty crops, led by chickpeas (-29.6%) and canary seed (-22.3%).

The decline in the crops index in December was tempered by increases in the fresh vegetables (+3.7%) and fresh potatoes (+1.1%) indexes. The fresh fruits index declined 1.3% in December compared with the same month a year earlier, marking its fourth consecutive year-over-year decrease.

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

In December, the total livestock index was up 14.1% compared with the same month a year earlier. The increase in the index was mainly attributable to gains in the cattle and calves index and the hogs index.

The cattle and calves index rose 18.3% in December compared with the same month a year earlier. The shrinking cattle herd contributed to the increase in the index. The quantity of cattle exported for immediate slaughter was up 8.6%, and the value of cattle exported for immediate slaughter increased 31.3% year over year in the fourth quarter of 2024.

In December, the indexes for hogs (+23.5%), eggs (+3.1%) and dairy (+5.9%) were up compared with December 2023, while the poultry index decreased 0.3%.

Table 1: Farm Product Price Index