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

WASHINGTON - May 30/08 - SNS -- The preliminary All Farm Products Index of Prices Received by Farmers in May, at 150%, based on 1990-92=100, increased 5 points (3.4%) from April, according to this USDA report on the sector.

The Crop Index is up 4 points (2.4%) and the Livestock Index increased 5 points (3.9%). Producers received higher prices for hogs, cattle, onions, and broilers and lower prices for eggs, lettuce, wheat, and broccoli. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly marketings of cantaloups, grapes, sweet corn, and wheat offset decreased marketings of cattle, milk, corn, and apples.

The preliminary All Farm Products Index is up 14 points (10%) from May 2007. The Food Commodities Index, at 147, increased 5 points (3.5%) from last month and increased 11 points (8.1%) from May 2007.

The May Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 184% of the 1990-92 average. The index is up 3 points (1.7%) from April and 23 points (14%) above May 2007. Higher prices in May for diesel fuel, mixed fertilizers, feeder cattle, and potash & phosphate more than offset lower prices for feed concentrates, feed supplements, tractors, and feed grains.

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