Canadian Farm Income Picture Brightens in May

OTTAWA - Jul 25/07 - SNS -- Prices received by Canadian farmers for their production finished May above year and month earlier levels, according to Statistics Canada.

The Farm Product Price Index (FPPI), where 1997 equals 100, stood at 105.9 in May, up from the revised April index of 104.8 and 9.7% above last year.

Prices for crops were 10.0% higher in May than they were in May 2006. This was the ninth consecutive monthly year-over-year increase and the seventh consecutive double-digit rise. Farmers received higher prices for all crops except potatoes and vegetables. After slumping to very low levels during the 2005-06 crop year (August to July), crop prices have surged in 2007 to their highest levels since the fall of 2004.

Prices for the livestock and animal product index rose 8.9% in May, as gains were made in all commodities except eggs, which remained almost unchanged (-0.1%). Increases ranged from 4.8% for dairy to 13.3% for hogs.

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