by JOHN BANCROFT
Statistics Canada released the Farm Product Price Index for March 2013 yesterday:
What is the Farm Product Price Index (FPPI)? Here is the explanation provided by Stats Canada:
- The Farm Product Price Index (FPPI) measures the changes in prices that farmers receive for the agriculture commodities they produce and sell. Commodities are priced at point of first transaction, where the fees deducted before a producer is paid are excluded, but bonuses and premiums that can be attributed to specific commodities are included.
- The price index has separate crop and livestock indexes, a variety of commodity-group indexes such as cereals, oilseeds, specialty crops, cattle and hogs and an overall index - all available monthly and annually for the provinces and for Canada.
- The FPPI is an important indicator of the economic activity in the agriculture sector. Agriculture economists and analysts interested in the health of the agriculture sector, deflating agricultural commodity prices and policy development, use the series.
- The information provided by FPPI is useful to producers, producer groups, commodity analysts from the private sector such as grain companies and meat processors, international exporters, the banking sector and government agencies responsible for agriculture policies. The index compares, in percentage terms, current farm prices to prices in the time base period, 2007=100.
Statistics Canada reported the March 2013 FPPI as follows:
- The Farm Product Price Index (FPPI) rose 2.4% in March compared with March 2012, as an increase in the crops index more than offset the decrease in the overall livestock and animal products index.
- The FPPI, driven mainly by rising crop prices, has observed year-over-year increases since August 2010. Double digit increases were recorded up to January 2012; since that time, the rate of growth in the FPPI has slowed.
- The crops index rose 6.8% in March compared with March 2012, largely as a result of the higher oilseeds index (+11.8%), which continued a growth trend that started in September 2010.
- Declines in the hogs index (-10.5%) and the cattle and calves index (-4.4%) were responsible for the decrease in the livestock and animal products index.
- The FPPI was 128.9 for March 2013 compared to 125.9 in March 2012. This means compared to the base period of 2007 that overall prices were 28.9 % better in March 2013.
- The crops FPPI was 133.6 and the livestock and animal products FPPI was 124.3 in March 2013 compared to 125.1 and 127.3, respectively in March 2012.
- Check the full report.
Disclaimer: This commentary is provided for information only and is not intended as advice
Posted on:
June 6, 2013