U.S. Farm Price Index Advances

WASHINGTON - Feb 27/04 - SNS -- The farm products price index in the United States rose two points in February, reaching a preliminary 113 points, according to the USDA.

The Livestock Products Index increased 1 point (0.9%) from January while the All Crops Index increased 2 points (1.8%). Producers received higher commodity prices for soybeans, broilers, corn, and hogs. Lower prices were received for cattle, lettuce, eggs, and broccoli. The seasonal change in the mix of commodities farmers sell, based on the past 3-year average, also affects the overall index. Increased average marketings of milk, cattle, broilers, and eggs offset decreased marketings of soybeans, corn, tobacco, and wheat.

This preliminary All Farm Products Index is up 14 points (14%) from February 2003. The Food Commodities Index increased 2 points (1.8%) from last month to 114, and is 18 points (19%) above February 2003.

The February Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 130% of the 1990-92 average. The index is unchanged from January but 2 points (1.6%) above February 2003 Lower prices in February for feeder cattle, feed concentrates, herbicides, and insecticides offset higher prices for complete feeds, nitrogen fertilizers, feed grains, and LP gas.

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