June Farm Prices Still Lag Rising Costs
The U.S. Department of Agriculture (USDA) today released its preliminary report on June farm prices. The index uses prices from 1990-1992 as its base value (100). The June all-products price index rose 4 points (2%) to 200 month-over-month, with the crop index up 3.6% and the livestock index down 1.2%. The all-products index is up 9.3% year-over-year.
Farm costs, measured by the prices paid index rose 0.5% month-over-month to 221, but that's 3.3% higher than June of 2012. Higher prices for nitrogen fertilizer, feeder cattle, and other fertilizers and supplements led the prices-paid hike.
Prices received by farmers rose the most for oilseeds, particularly soybeans, which are 8.6% higher than in June of 2012. Consumer prices for fruits and nuts rose 11% month-over-month, but are 2.1% lower than they were a year ago. Potatoes and dry beans are cheaper than they were a year ago and meat prices are up 0.6% compared with June of 2012, but flat month-over-month.
The USDA also noted that it is suspending a number of its statistical surveys and reports for the remainder of the 2013 fiscal year due to reduced funding.
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