The Cost of Farming in The U.S. Down Versus Last Year

WASHINGTON - Sep 29/08 - SNS -- The September Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 194% of the 1990-92 average, judging from the current USDA report.

The index is up 2 points (1.0%) from August and 32 points (20%) above September 2007.

Higher prices in September for mixed fertilizers, potash & phosphate materials, nitrogen fertilizers, and herbicides more than offset lower prices for diesel fuel, complete feeds, feed supplements, and hay & forages. The September Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) at 194 (1990-92=100), up 1.0% from August 2008 and 20% from September 2007. PRODUCTION INDEX: The September index, at 205, increased 1.0% from last month and 27% from a year ago. Higher prices in September for mixed fertilizers, potash & phosphate materials, nitrogen fertilizers, and herbicides more than offset lower prices for diesel fuel, complete feeds, feed supplements, and hay & forages. Feed: The September index, at 201, decreased 2.0% from August but increased 37% from last September. Since August, lower prices for complete feeds, feed supplements, hay & forages, and feed grains more than offset higher prices for feed concentrates. Livestock & Poultry: The September index, at 127, decreased 0.8% from last month and 5.9% from last year. Since August, lower prices for feeder cattle more than offset higher prices for feeder pigs. The September feeder cattle price, at $105.80 per cwt, is down $1.00 per cwt from the August price. September feeder pigs averaged $83.00 per cwt, up $2.00 per cwt from August. Fertilizer: The September index, at 516, is up 10% from August and 131% from September a year ago. Since August, potash & phosphate materials increased 16%, mixed fertilizers rose 12%, and nitrogen fertilizers are up 6.5%. Chemicals: The September index, at 152, increased 3.4% from August and 19% from last September. Fuels: The September index, at 373, is down 4.4% from a month earlier but 37% above September 2007. The diesel fuel price is down 5.5%, the LP gas price is down 2.6%, and the gasoline price is down 1.3%. Machinery: The September index, at 211, increased 1.0% from August and 9.3% from last September. Since August, prices are higher for other machinery, tractors, and self-propelled machinery. CONSUMER PRICE INDEX: The August 2008 Consumer Price Index, as issued by the Bureau of Labor Statistics, for all urban consumers (CPI-U) decreased 0.4% before seasonal adjustment to a level of 219.086 (1982-84=100). This compares with the July index of 219.964. For the 12-month period ending in August, the overall index increased 5.4%.

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