Average Prices Received by U.S. Farmers Up Versus Last Month

WASHINGTON - Jan 30/09 - SNS -- The preliminary All Farm Products Index of Prices Received by Farmers in January, at 137%, based on 1990-92=100, increased 2 points (1.5%) from December, shows today's USDA sector report.

The Crop Index is up 8 points (5.4%) but the Livestock Index decreased 4 points (3.4%). Producers received higher prices for soybeans, lettuce, oranges, and broccoli and lower prices for milk, cotton, tomatoes, and onions. 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 corn, soybeans, cattle, and rice offset decreased marketings of cottonseed, grapes, broilers, and cotton.

The preliminary All Farm Products Index is down 7 points (4.9%) from January 2008. The Food Commodities Index, at 134, increased 1 point (0.8%) from last month but decreased 10 points (6.9%) from January 2008.

The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 175% of the 1990-92 average. The index is unchanged from December but 6 points (3.6%) above January 2008. Higher prices in January for taxes, cash rent, feeder cattle, and interest offset lower prices for mixed fertilizer, potash & phosphate, complete feeds, and diesel.

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