Agricultural Prices Received and Paid

I went to a funeral of one of my uncles today in Topeka and saw my stepdad, a retired corn farmer in Nebraska (still with a rooting commercial interest in the corn crop, of course). After the service at my aunt's home I was ribbing him that $6 per bushel corn must be nice. He reminded me that when it takes $400 to fill a tractor with diesel fuel for one day, prices had better be good. That sentiment is reflected in today's Agricultural Prices report from the USDA, which showed priced received high but prices paid by farmers even pegging higher on the historical index.

April Farm Prices Received Index Declines 2 Points From March

The preliminary All Farm Products Index of Prices Received by Farmers in April, at 144 percent, based on 1990-92=100, decreased 2 points (1.4 percent) from March. The Crop Index is unchanged but the Livestock Index decreased 4 points (3.1 percent). Producers received lower commodity prices for eggs, strawberries, cattle, and wheat. Higher prices were received for corn, lettuce, onions, and soybeans. In addition to prices, the overall index is also affected by the seasonal change based on a 3-year average mix of commodities producers sell. Increased monthly marketings of cattle, strawberries, milk, and oranges offset decreased marketings of soybeans, corn, wheat, and cotton. The preliminary All Farm Products Index is up 11 points (8.3 percent) from April 2007. The Food Commodities Index, at 140, decreased 5 points (3.4 percent) from last month but increased 5 points (3.7 percent) from April 2007.

Prices Paid Index Up 3 Points

The April Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 181 percent of the 1990-92 average. The index is up 3 points (1.7 percent) from March and 21 points (13 percent) above April 2007. Higher prices in April for field crop seeds, diesel fuel, feed grains, and hay & forages more than offset lower prices for feeder pigs,
feeder cattle, feed supplements, and complete feeds.