U.S. Farm Income Picture Improves in June

WASHINGTON - Jun 29.06 - SNS -- The farm income situation for farmers in the United States improved slightly in June, with average prices received gaining on the previous month, while the cost of farming was unchanged.

The preliminary All Farm Products Index of Prices Received by Farmers in June, at 118, based on 1990-92=100, increased 3 points (2.6%) from May. The Crop Index is down 2 points (1.6%) but the Livestock Index increased 6 points (5.8%).

Producers received higher commodity prices for broilers, sweet corn, hogs, and broccoli. Lower prices were received for lettuce, cantaloup, corn, and strawberries. 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 wheat, grapes, hay, and cantaloup offset decreased marketings of oranges, tomatoes, strawberries, and sweet corn.

Preliminary All Farm Products Index is down 1 point (0.8%) from June 2005. The Food Commodities Index, at 119, increased 3 points (2.6%) from last month but decreased 2 points (1.7%) from June 2005.

The June Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 147% of the 1990-92 average. The index is unchanged from May but 6 points (4.3%) above June 2005. Lower prices in June for nitrogen fertilizers, hay and forages, complete feeds, and feed grains, were offset by higher prices for LP gas, feeder cattle, self-propelled machinery, and herbicides.

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