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Farmers' Cost-Price Squeeze Tightens
WASHINGTON - Feb 1/05 - SNS -- The spread between prices received and the cost of agricultural inputs worsened in January, with the USDA saying prices received across all commodities were down 1%,l while the cost of farming rose.
The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is now 134% of the 1990-92 average -- while prices received are just 110%.
The cost index is up 1 point from December and 4 points (3.1%) above January 2004. Higher prices in January for self propelled machinery, feeder pigs, and nitrogen fertilizers offset lower prices for LP gas, gasoline, and feed grains.
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