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Cost Price Squeeze Tightens
WASHINGTON - Sep 28/06 - SNS -- The cost-price squeeze faced by farmers in the United States tightened in September, with average prices received for products sold falling more quickly than the cost of farming, according to the latest USDA data.
The preliminary All Farm Products Index of Prices Received by Farmers in September, at 118%, based on 1990-92=100, decreased 2 points (1.7%) from August.
The Crop Index is down 7 points (5.6%) but the Livestock Index increased 1 point (0.9%). Producers received lower commodity prices for lettuce, potatoes, hogs, and broccoli. Higher prices were received for cattle, milk, tomatoes, and turkeys.
The overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Decreased average marketings of cattle, broilers, wheat, and grapes offset increased marketings of soybeans, apples, corn, and potatoes.
Preliminary All Farm Products Index is up 2 points (1.7%) from September 2005. The Food Commodities Index, at 121, decreased 2 points (1.6%) from last month and is unchanged from September 2005.
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