U.S. On-Farm Prices Up On The Year

WASHINGTON - Jun 27/08 - SNS -- The preliminary All Farm Products Index of Prices Received by Farmers in June, at 162%, based on 1990-92=100, increased 11 points (7.3%) from May, judging from the current USDA report on the sector.

The Crop Index is up 19 points (11%) and the Livestock Index increased 3 points (2.2%). Producers received higher prices for corn, soybeans, milk, and lettuce and lower prices for strawberries, cantaloups, and wheat. 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 wheat, hay, grapes, and cantaloups offset decreased marketings of tomatoes, oranges, strawberries, and sweet corn.

The preliminary All Farm Products Index is up 25 points (18%) from June 2007. The Food Commodities Index, at 157, increased 10 points (6.8%) from a month ago and increased 19 points (14%) from June 2007.

The June Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 189% of the 1990-92 average. The index is up 3 points (1.6%) from May and 28 points (17%) above June 2007. Higher prices in June for feed grains, diesel fuel, feed concentrates, and mixed fertilizers offset lower prices for hay & forages and feeder pigs.

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