Canadian Farm Incomes Pressured

OTTAWA - Jan 5/06 - SNS -- Falling prices for field crops pulled down Canada's Farm Product Price Index (FPPI) in October, despite gains in returns from selling livestock, according to Statistics Canada.

"Overall, producers received prices for crops that were 18.9% below levels in October 2004," Statistics Canada said, "continuing the downward trend in year-over-year price changes since the summer of 2003. . . Farmers received lower prices for grains, oilseeds, special crops and vegetables."

In contrast, prices for livestock and animal products were 7.7% above the year-earlier level. Since June 2004, the overall livestock and animal products index has increased in all but one month — June 2005. Stronger cattle, calf and dairy prices have supported the increases over the last four months, as hog, egg and poultry prices continued their year-over-year slide.

On a monthly basis, prices farmers received for their commodities were unchanged in October from September. Again, the decline in the overall crops index was offset by the increase in the livestock and animal products index.

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