U.S. Farmers Get Breathing Room

WASHINGTON - May 31./06 - SNS -- The income situation of farmers in the United States improved slightly in May as returns from selling agricultural commodities improved and the cost of farming was unchanged from the previous month.

The USDA says the preliminary All Farm Products Index of Prices Received by Farmers in May, at 114, based on 1990-92=100, increased 1 point (0.9%) from April. The Crop Index is up 3 points (2.4%) but the Livestock Index decreased 1 point (1.0%).

The preliminary May Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 146% of the 1990-92 average, unchanged from April.

Producers received higher prices for lettuce, hogs, onions, and grapefruit. Lower prices were received for cattle, asparagus, tomatoes, and eggs. 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 grapes, sweet corn, cantaloup, and broilers offset decreased marketings of cattle, milk, calves, and apples. Preliminary All Farm Products Index is down 5 points (4.2%) from May 2005. The Food Commodities Index, at 115, increased 1 point (0.9%) from last month but decreased 7 points (5.7%) from May 2005.

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