Prices farmers received for their commodities fell 12.2% in July

Statscan - The fall of 12.2% is from the same month a year earlier, as both the crops index and the livestock and animal products index declined.

The prices producers received for crops in July were 18.7% lower compared with July 2008. The decline in the crops index was due to decreases recorded by all commodities except potatoes. Potato prices in July were 14.8% above those of July 2008 as North American production was down last fall.

The prices producers received for livestock and animal products fell 3.3% in July compared with July 2008. Decreases were recorded for all commodities except poultry and dairy.

On a month-to-month basis, the total index (1997=100) decreased from 115.1 in June to 112.8 in July.

The total crops index fell 2.1% in July compared with the June index, as prices for all commodities except specialty crops and potatoes declined.

In July, the overall livestock and animal products index stood at 104.0, down from the June level of 105.2. Decreases were recorded in the prices of all commodities except poultry and eggs.

The hogs index fell 0.7% in July, the fourth month-to-month decrease this year. Hog producers continue to be faced with the US Country of Origin Labeling legislation, concerns about the H1N1 flu virus and lower demand driven by the economic crisis.

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