Prices farmers received for their commodities were down 1.2 per cent in September from August 2008, as both the crops index and the livestock and animal products index fell, according to Statistics Canada.
On a year-over-year basis, StatsCan said Wednesday in its farm products price index (FPPI) update, prices received by producers for crops were down 0.5 per cent in September compared with September 2007 — the first such decline since January 2006.
Since September 2006, the crops index had maintained double-digit advances, when concerns over tight supplies and strong demand supported the increases.
On a month-to-month basis, this was the third consecutive drop in the grains and overall crops indexes, as the International Grains Council released its estimate of wheat production for the 2008-09 crop year, 12 per cent from the previous year.
The September 2008 livestock and animal products index dropped 1.9 per cent from August as all commodities were down except poultry and dairy.
Note: The growth rate of the total Farm Product Price Index (FPPI) is not a weighted average of the growth rates of its crop and livestock components. The growth rate of the total FPPI is derived from a weighted average of the component indices using a different set of weights in consecutive months. Given this, the growth rate of the composite FPPI can lie outside the growth rate of the components.