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Prices Paid by U.S. Farmers Unchanged
WASHINGTON - Dec 30/05 - SNS -- The December Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 143% of the 1990-92 average, according to the USDA, unchanged from November but 9 points (6.7%) above December 2004.
Unfortunately, with commodity returns down in November, the cost price squeeze facing U.S. farmers continued to tighten in December. Given the close relationship betwen cost and commodity returns in Canada and the United States, a similar situation would be expected north of the border.
Lower prices in December for feeder cattle, diesel fuel, complete feeds, and LP gas offset higher prices for nitrogen fertilizers, feed concentrates, feeder pigs, and feed grains.
The December Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW), at 143, (1990-92=100), is unchanged from November 2005 but up 6.7% from December 2004.
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