U.S. On-Farm Prices Up Versus Last Month

WASHINGTON - May 31/07 - SNS -- The preliminary All Farm Products Index of Prices Received by Farmers in May, at 138%, based on 1990-92=100, increased 4 points (3.0%) from April, according to this USDA report.

The Crop Index is up 3 points (2.1%) and the Livestock Index increased 5 points (3.9%). Producers received higher commodity prices for milk, hogs, hay, and broilers. Lower prices were received for lettuce, cattle, broccoli, and cauliflower. 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 sweet corn, broilers, peaches, and wheat offset decreased marketings of cattle, milk, oranges, and apples.

The preliminary All Farm Products Index is up 27 points (24%) from May 2006. The Food Commodities Index, at 139, increased 4 points (3.0%) from last month and increased 28 points (25%) from May 2006.

The May Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 158% of the 1990-92 average. The index is up 1 point (0.6%) from April and 9 points (6.0%) above May 2006. Higher prices in May for hay & forages, gasoline, mixed fertilizers, and nitrogen fertilizers more than offset lower prices for feed supplements, complete feeds, diesel fuel, and feeder cattle.

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