Modest Gains in Canadian Farm Returns

OTTAWA - Mar 7/07 - SNS -- Canadian farmers received slightly better returns for their agricultural production in December than was the case one year earlier, according to the latest Statistics Canada Farm Product Price Index (FPPI) calculations.

The index finished the month at a preliminary 97.1 points (1997=100), up from a revised November index of 96.6 and revised December 2005 index value of 93.0 points.

Strong gains in grain and oilseed prices more that offset the overall declining livestock and animal products prices.

Overall, producers received prices for crops that were 15.1% above those of December 2005, marking the fourth consecutive month of year-over-year increases. Significant gains were recorded for grains, oilseeds and special crops. The autumn of 2006 signified the end of a year-over-year decrease for grain prices which had lasted almost three years.

However, prices for livestock and animal products were 2.4% below the year earlier level. Lower cattle and calf prices were the big contributor while hogs also recorded a decrease, continuing a trend that had started in May 2005. Meanwhile, prices for the supply-managed commodities increased.

On a monthly basis, prices farmers received for their commodities increased 0.5% from November 2006, as the overall crops index rose 1.8% and the livestock and animal products index inched up 0.2%.

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