Canadian Farm Incomes Pressured

OTTAWA - Oct 24/05 - SNS -- Prices Canadian farmers received for their commodities was 5% lower in August than during the same month last year, reports Statistics Canada, as dropping crop prices offset small advances in livestock values.

Overall, producers received prices for crops that were 12.7% below levels in August 2004, continuing the downward trend in year-over-year price changes for the 24 consecutive month, according to the Farm Product Price Index (FPPI). Farmers received lower prices for grains, oilseeds, potatoes, special crops and vegetables.

In contrast, prices for livestock and animal products were 2.0% above the year earlier level. The overall livestock and animal products index has increased in six of the eight months this year. It was stronger cattle and calf and dairy prices which supported August's increase as hog prices continued their year-over-year slide that started in May.

On a monthly basis, prices farmers received for their commodities rose 3.3% in August from July, as both the overall crops and livestock and animal products indexes recorded increases.

The FPPI (1997=100) stood at 97.2 in August, up from a revised July index of 94.1. Increasing in four of the last eight months, the index was at its second highest level this year. It had reached a high of 98.2 in February.

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