Farm Product Price Index

Prices farmers received for their commodities fell 2.4% in March from the same month a year earlier, in the wake of a decline in crop and livestock prices.

Prices for crops were 3.1% lower in March than they were a year earlier. Except for a few months in the fall of 2004, crop prices have been trending down since July 2003. Farmers received lower prices for grains, oilseeds, specialty crops and fruits.

Prices for livestock and animal products were 0.5% lower in March than they were a year earlier. This was the second consecutive month of year-over-year decreases. Prices fell in March for hogs and poultry.

The FPPI (1997=100) stood at 95.4 in March, unchanged from a revised February index.

Prices for livestock and animal products slid 0.6% in March from the revised February index, as cattle and calves, poultry and dairy all recorded a decline. There were no large changes from February, which ranged from a 1.5% decline for dairy to a 1.6% increase for hogs.

Cattle and calf prices were down 0.9% in March. After increasing 14.5% last July, when the border reopened to trade of live animals (under 30 months of age), the month-to-month index changes have ranged from a decline of 1.9% to an increase of 2.7%.

Following seven declines in nine months, hog prices edged up for the second consecutive month. The downward pressure had come from large North American supplies and the strong Canadian dollar.

Prices farmers received for crops were up 1.1% in March as all major categories recorded increases except grains and fruit.

Potato prices rose in March, the fifth consecutive monthly increase; supported by an 18% drop in production last fall. Fewer contracts for processing potatoes and poor prices in 2004 led to an 8% drop in seeded acres. However poor growing conditions last season further curtailed production.

Prices for oilseeds were up 2.4% in March from the low reached in February, which was the lowest level since February 2001. After increasing in the spring of 2005, oilseed prices have trended downward, reflecting burdensome supplies and a strong Canadian dollar.

The grains index also slipped 2.2% as grain prices have been plagued by record production, a strong Canadian dollar and quality-reducing growing and harvest conditions. However, as the new crop year approaches, crop prices start to react to weather conditions and their impact on this year's production.

Available on CANSIM: tables 002-0021 and 002-0022.

Definitions, data sources and methods: survey number 5040.

The March 2006 issue of Farm Product Price Index, Vol. 6, no. 3 (21-007-XIE, free) is now available online from the Our products and services page of our website.

For general information or to order data, call (1-800-465-1991). To enquire about the concepts, methods or data quality of this release, contact Gail-Ann Breese (204-983-3445; fax: 204-983-7543; gail-ann.breese@statcan.gc.ca), Agriculture Division.