Farm Product Price Index – August 2011

Prices farmers received for their commodities in August rose 7.7% from August 2010, as overall livestock and animal products prices and crops prices continued to advance. It was the thirteenth consecutive year-over-year increase in August, but at a slower rate and the first single digit increase since December 2010.

In the 12 months to August, both the livestock and animal product index (+12.5%) and the total crops index (+3.4%) recorded increases.

Compared with August 2010, advances were recorded in all livestock commodities, ranging from 3.3% for dairy to 19.4% for poultry.

The cattle and calves index (+16.0%) and the hogs index (+13.7%) are the largest contributors to the livestock and animal products index. Except for a dip in May 2011 of the hog index (-0.5%), both of these commodities have continued their double digit growth since August 2010. Lower inventories of cattle and hogs in North America and higher feed grain costs have contributed to higher livestock and animal product prices.

Oilseed prices (+24.6%) continue to be the largest contributor to the advance in crop prices, followed by specialty crops (+22.3%) and grains (+6.5%). The year-over-year increase in the crops index was moderated by lower prices for fruit (-7.7%) and vegetables (-3.8%).

On a monthly basis, following no changes in July, the August index rose 0.7%. An increase in livestock and animal products index was partially offset by a drop in the crops index.

Source: Statistics Canada

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Farm Product Prices – August 2011

Prices received by farmers in August for grains, oilseeds, specialty crops, potatoes, cattle, hogs, poultry, eggs and dairy products are now available.

The August Saskatchewan non-board wheat price was $192.91 per tonne, down 4.9% from July but up 35.4% from August 2010 when the price was $142.50.

The Quebec hogs price in August was $93.24 per hundredweight, up 10.6% from July and 19.3% higher than August 2010 when it stood at $78.17.

Source: Statistics Canada

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Production of Principal Field Crops – September 2011 Preliminary

With harvest underway, the good mid-summer weather conditions have Western farmers anticipating increased production of canola, as well as higher volumes of barley and wheat compared with 2010. Farmers in Ontario and Quebec expect lower yields and a smaller crop of corn for grain in 2011, while Quebec farmers anticipate a record soybean production.

Total wheat production up

Total wheat production in the West is expected to reach 21.7 million metric tonnes in 2011, up 3.0% from 2010. Yield has been flat for the past four years and 2011 sees this trend continue with an anticipated yield of 40.1 bushels per acre.

The rise in production was mainly attributable to an increase in durum wheat. Durum wheat production is expected to increase 30.2% from 2010 to 3.9 million tonnes, on the strength of higher anticipated harvested area, up 27.5%, and in expected yield, from 36.1 to 36.9 bushels per acre in 2011.

Canola production expected to increase

Western farmers reported that canola production could reach 12.8 million tonnes, up 1.1% from 2010 production. The advance is the result of a record harvested area of 17.9 million acres, up 6.3% over 2010.

However, the expected yield of 31.6 bushels per acre represents a decline of 4.8% from 2010. Of the four western provinces, only Manitoba expects its canola production to decline from 2010 levels.

Barley production rises

Despite a lower harvested area compared with 2010, Canadian farmers anticipate that increased yields of barley will lead to a production of 7.9 million tonnes, up 3.8% or 292 600 tonnes from 2010.

Barley yields are expected to reach 62.5 bushels per acre in 2011, up 5.6% from 2010. The increase is concentrated in Saskatchewan, where production is expected to reach 2.5 million tonnes in 2011, up from 1.9 million tonnes in 2010.

Smaller corn for grain harvest for Ontario and Quebec farmers

In Ontario, production estimates for corn for grain were down 13.8% from 2010 to 6.7 million tonnes, the result of a 23.4 bushel per acre drop in yield to 140.6 bushels per acre. Harvested area should remain almost unchanged from 2010 at 1.9 million acres.

Similarly, Quebec farmers expect corn for grain production to fall 12.9% to 3.0 million tonnes in 2011, an anticipated decrease of 440 000 tonnes from the 3.4 million tonnes in 2010. The expected drop would primarily be the result of a 12.2% decline in yield to 130.0 bushels per acre, from 148.0 bushels per acre in 2010. The decline of 0.8% in seeded area for corn for grain represents the fourth consecutive year that Quebec farmers have seeded fewer acres to this crop.

Soybean national production expected to fall from record levels in 2010

At the national level, soybean production is expected to decrease from 4.3 million tonnes in 2010 to 3.9 million tonnes. Most of this decline comes from Ontario where, despite an amount of harvested acres virtually unchanged from 2010, yield is expected to drop by 5.5 bushels per acre to 40.5 bushels per acre. Manitoba farmers also expect a lower average yield, from 31.4 bushels per acre in 2010 to 25.7 bushels per acre in 2011.

Source: Statistics Canada

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