U.S. On-Farm Prices Down From Last Year

WASHINGTON - Nov 30/09 - SNS -- The preliminary All Farm Products Index of Prices Received by Farmers in November, at 134%, based on 1990-92=100, was unchanged from October, judging from the latest USDA update on the sector.

The Crop Index is down 1 point (0.7%) but the Livestock Index increased 4 points (3.6%). Producers received higher prices for lettuce, eggs, milk, and tomatoes and lower prices for apples, broccoli, strawberries, and grapes. 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 milk, cotton, cattle, and oranges offset decreased marketings of soybeans, potatoes, peanuts, and lettuce.

The preliminary All Farm Products Index is down 8 points (5.6%) from November 2008. The Food Commodities Index, at 134, increased 1 point (0.8%) from last month but decreased 5 points (3.6%) from November 2008.

The November Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 176% of the 1990-92 average. The index is unchanged from October but 6 points (3.3%) below November 2008. Lower prices in November for nitrogen, complete feeds, other services, and potash & phosphate offset higher prices for diesel, supplements, LP gas, and feeder cattle.

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