American Farm Incomes Still Squeezed

WASHINGTON - Nov 30/05 - SNS -- The cost of farming in the United States has risen faster in the past year than returns from selling what is produced, though November provided some relief with average prices received rising faster during the month than average prices paid for farm inputs.

The USDA said the preliminary All Farm Products Index of Prices Received by Farmers in November, at 113, based on 1990-92=100, up 2 points (1.8%) from October, but down 3 points (2.5%) from November 2004.

The November Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 143% of the 1990-92 average. The index decreased 1 point (0.7%) from October but is 8 points (5.9%) above November 2004. Lower prices in November for diesel fuel, gasoline, complete feeds, and hays & forages offset higher prices for feed concentrates, nitrogen fertilizers, building materials, and feeder pigs.

The Crop Index is up 1 point (1.0%) while the Livestock Index decreased 1 point (0.8%). Producers received higher commodity prices for eggs, oranges, potatoes, cucumbers, and cattle. Lower prices were received for lettuce, dairy, hogs, broilers, and tomatoes.

The overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased average marketings of dairy, cattle, cotton, and oranges offset decreased marketings of soybeans, potatoes, peanuts, and sweet corn.

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