Canadian Farm Returns Off in July

OTTAWA - Sep 26/06 - SNS -- Canadian farmers watched prospective returns from agricultural production decline in July, according to the latest Farm Product Price Index (FPPI) calculations from Statistics Canada, with the index coming in at 94.3, down 1.9% from the revised June index of 96.1.

The federal agency reported farmers received 4.1% less for their commodities than the same month last year, as overall crops prices fell and overall livestock prices were down slightly.

Prices for crops fell 9.5% from July 2005, as prices for all crops except potatoes were down from year earlier levels. Potato prices continued their upward trend which has run for most of the 2005-06 crop year while grains, oilseeds and specialty crops continued their downward trend that began in November 2004.

Meanwhile, prices for livestock and animal products were 0.2% lower compared with July 2005. Lower hog and cattle and calf prices offset higher prices from the supply managed commodities — eggs, poultry and dairy.

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