Falling Crop Values Drop FPPI

OTTAWA - Oct 24/06 - SNS -- A general decline in crop values from last year more than offset a moderate increase in livestock values to drive Canada's Farm Product Price Index (FPPI) below year earlier levels, reports Statistics Canada.

The FPPI stood at 95.6 (1997=100) in August, up 1.5% from the revised July index of 94.2.

Prices for crops fell 14.4% from August 2005, as prices for all crops except oilseeds and potatoes were down from year-earlier levels. This was the first year-to-year increase for oilseed prices since September 2004, while grains and specialty crops continued their downward trend that began in November 2004. Potato prices continued their upward trend, which ran for most of the 2005-06 crop year.

Meanwhile, prices for livestock and animal products were 0.5% higher compared with August 2005. Hog prices recorded the only decrease, while cattle and calves and the supply managed commodities (eggs, poultry and dairy) increased.

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