Farming Costs in the U.S. Down Versus Last Month

WASHINGTON - Jul 31/08 - SNS -- The July Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 191% of the 1990-92 average, shows today's USDA statistics.

The index is up 2 points (1.1%) from June and 29 points (18%) above July 2007.

Higher prices in July for potash & phosphate materials, nitrogen fertilizers, mixed fertilizers, and diesel fuel more than offset lower prices for feed concentrates, feeder pigs, trucks, and other machinery. The July Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) at 191 (1990-92=100), is up 1.1% from June 2008 and 18% from July 2007. PRODUCTION INDEX: The July index, at 201, increased 2.0% from last month and 24% from the previous year. Higher prices in July for potash & phosphate materials, nitrogen fertilizers, mixed fertilizers, and diesel fuel more than offset lower prices for feed concentrate, feeder pigs, trucks, and other machinery. Feed: The July index, at 200, increased 1.0% from June and 35% from last July. Since June, higher prices for complete feeds, feed grains, hay & forages, and feed supplements more than offset lower prices for feed concentrates. Livestock & Poultry: The July index, at 123, decreased 0.8% from last month and 8.2% from last year. Since June, lower prices for feeder pigs more than offset higher prices for milk cows and feeder cattle. The July feeder cattle price, at $104.30 per cwt, is up 20 cents per cwt from the June price. July feeder pigs averaged $52.00 per cwt, down $15.00 per cwt from June. Fertilizer: The July index, at 454, is up 12% from June and 104% above July a year ago. Potash & phosphate prices increased 25 %, nitrogen fertilizer prices are up 11%, and mixed fertilizer prices rose 7.4% since last month. Chemicals: The July index, at 144, increased 2.1% from June and 12% from last July. Herbicides are up 2.3% and fungicides are up 2.0% while insecticides rose 1.8%. Fuels: The July index, at 430, is up 1.7% from a month earlier and 62% above July 2007. The LP gas price is up 5.1%, the diesel fuel price is up 1.3%, and the gasoline price is up 0.9% since last month. Machinery: The July index, at 208, is unchanged from June but 8.9% above last July. Since June, prices are lower for other machinery. CONSUMER PRICE INDEX: The June 2008 Consumer Price Index, as issued by the Bureau of Labor Statistics, for all urban consumers (CPI-U) increased 1.0% before seasonal adjustment to a level of 218.815 (1982-84=100). This compares with the May index of 216.632. For the 12-month period ending in June, the overall index increased 5.0%.

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