U.S. Farmers Pay More for Inputs

WASHINGTON - Aug 31/04 - SNS - The cost of farming in the United States rose in August, with the USDA's Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) rising to 135 (1990-92=100) points, 0.7% higher than July 2004 and 6.3% above August 2003.

The August production index, at 133, is up 0.8% from last month and 8.1% above last year. Higher prices in August for complete feeds, diesel fuel, feeder cattle, and nitrogen fertilizers more than offset lower prices for feed grains, other machinery, feed supplements, and feed concentrates.

Feed: The August index, at 125, is the same as July but 16% above last August. Since July, lower prices for feed grains, feed supplements, feed concentrates, and hay and forages offset higher prices for complete feeds.

Livestock & Poultry: The August index for livestock and poultry purchases, at 137, is 0.7% higher than last month and 28% above last year. Since July, higher prices for feeder cattle more than offset lower prices for feeder pigs. The August feeder cattle price, at $119.20 per cwt, is up $1.40 per cwt from the July price. August feeder pigs average $98.00 per cwt, down $2.00 per cwt from July.

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