Canadian Farmers Enjoy Price Surge Through May

OTTAWA - Jul 23/08 - SNS -- Grower bid prices in Canada continued to escalate through May, with the Farm Product Price Index (FPPI) rising 2.71% on the month and 14.1% above year earlier levels to 121.3 (1997=100).

Statistics Canada said the change reflected the ongoing strength in field crop markets still evident through May and June, which offset declines in livestock prices.

Prices that producers received for crops were up 40.2% in May compared with May 2007, continuing double-digit increases which began in November 2006. Farmers received higher prices for all crops except fruit.

On the other hand, prices for livestock and animal products in May were 3.6% below their May 2007 level, the ninth consecutive year-over-year decline as cattle and hog prices continued to fall. Hog, cattle and calf prices have posted 12 months of year-over-year decreases. For the last nine months, those declines have been double-digit for hog prices.

Subscribers can read the full text of the article by Clicking here