Canadian Farm Returns Sink in December

OTTAWA - Mar 8/06 - SNS -- The financial plight facing Canadian farmers continues to be underscored by Statistics Canada, which reports prices received for agricultural commodities dropped 3.5% in December 2005 to 91.5 points, the lowest level since the end of 1999.

Overall, producers received prices for crops that were 7.0% below levels in December 2004, continuing the downward trend in year-over-year price changes since the summer of 2003, according to the Farm Product Price Index (FPPI). Farmers received lower prices for grains, oilseeds and special crops.

Prices for livestock and animal products slipped 0.9% in December compared with the same period a year earlier, the first decline in five months and only the second decrease in 2005. Hog, egg and poultry prices continued their year-over-year slide, pulling down the overall livestock and animal product index — despite persistent strength in cattle, calf and dairy prices throughout the year.

On a monthly basis, prices farmers received for their commodities were down 1.0% in December from November. Both the overall crops and the livestock and animal products indexes recorded declines from the revised November index.

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