Pr 1 (1-06) Washington, D.C. Agricultural Prices Released January 31, 2006, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For information on Agricultural Prices see page 87, office hours 7:30 a.m. to 4:00 p.m. ET. January Farm Prices Received Index Decreased 3 Points From Last Month The preliminary All Farm Products Index of Prices Received by Farmers in January, at 112, based on 1990-92=100, decreased 3 points (2.6 percent) from December. The Crop Index is down 3 points (2.7 percent) and the Livestock Index also decreased 3 points (2.5 percent). Producers received lower commodity prices for lettuce, turkeys, eggs, and hogs. Higher prices were received for cattle, oranges, corn, and cotton. The overall index is also affected by the seasonal change based on a 3-year average mix of commodities a producer sells. Increased average marketings of cattle, soybeans, corn, and strawberries offset decreased marketings of grapes, tomatoes, dairy, and cotton. Preliminary All Farm Products Index is up 1 point (0.9 percent) from January 2005. The Food Commodities Index, at 118, decreased 4 points (3.3 percent) from last month but increased 2 points (1.7 percent) from January 2005. Prices Paid Index Up 2 Points The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates (PPITW) is 145 percent of the 1990-92 average. The index increased 2 points (1.4 percent) from December and 8 points (5.8 percent) above January 2005. Higher prices in January for gasoline, LP gas, complete feeds, and feed supplements more than offset lower prices for feeder cattle, feed concentrates, milk cows, and potash & phosphate materials. Index Summary Table Index 1990-92=100 2004 2005 2006 Dec Jan Dec Jan Prices Received Prices Paid Ratio 1 111 134 83 111 137 81 115 143 80 112 145 77 1 Ratio of index of prices received by farmers to index of prices paid by farmers.
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Pr 1 (1-06)
Washington, D.C.
AgriculturalPrices
Released January 31, 2006, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department ofAgriculture. For information on Agricultural Prices see page 87, office hours 7:30 a.m. to 4:00 p.m. ET.
January Farm Prices Received Index Decreased 3 Points From Last Month
The preliminary All Farm Products Index of Prices Received by Farmers in January, at 112, based on1990-92=100, decreased 3 points (2.6 percent) from December. The Crop Index is down 3 points(2.7 percent) and the Livestock Index also decreased 3 points (2.5 percent). Producers received lowercommodity prices for lettuce, turkeys, eggs, and hogs. Higher prices were received for cattle, oranges, corn,and cotton. The overall index is also affected by the seasonal change based on a 3-year average mix ofcommodities a producer sells. Increased average marketings of cattle, soybeans, corn, and strawberries offsetdecreased marketings of grapes, tomatoes, dairy, and cotton.
Preliminary All Farm Products Index is up 1 point (0.9 percent) from January 2005. The Food CommoditiesIndex, at 118, decreased 4 points (3.3 percent) from last month but increased 2 points (1.7 percent) fromJanuary 2005.
Prices Paid Index Up 2 Points
The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates(PPITW) is 145 percent of the 1990-92 average. The index increased 2 points (1.4 percent) from Decemberand 8 points (5.8 percent) above January 2005. Higher prices in January for gasoline, LP gas, complete feeds,and feed supplements more than offset lower prices for feeder cattle, feed concentrates, milk cows, and potash& phosphate materials.
Index Summary Table
Index1990-92=100
2004 2005 2006
Dec Jan Dec Jan
Prices Received
Prices Paid
Ratio 1
111
134
83
111
137
81
115
143
80
112
145
77 1 Ratio of index of prices received by farmers to index of prices paid by farmers.
The January All Farm Products Index is 112 percent of its 1990-92 base, down 2.6 percent from theDecember index but 0.9 percent above the January 2005 index.
ALL CROPS: The January index is 107, down 2.7 percent from December but 4.9 percent aboveJanuary 2005. From December, index decreases for vegetables, oil-bearing crops, and food grains more thanoffset the index increases for fruits & nuts and cotton.
Food Grains: The January index, at 115, is 1.7 percent below the previous month but 0.9 percent above ayear ago. The January all wheat price, at $3.48 per bushel, is down 6 cents from December but up 5 centsfrom January 2005.
Feed Grains & Hay: The January index is 90, unchanged from last month but 5.3 percent below a year ago. The corn price, at $1.96 per bushel, is up 4 cents from last month but 16 cents below January 2005. The allhay price, at $91.20 per ton, is 80 cents below December but up $3.40 from last January. Grain sorghum, at$3.15 per cwt, is 24 cents above December and 20 cents above January last year.
Oil-Bearing Crops: The January index, at 98, is down 3.9 percent from December and 2.0 percent lowerthan January 2005. The soybean price, at $5.51 per bushel, decreased 26 cents from December and is 6 centsbelow January 2005.
Cotton: The January index, at 82, is up 3.8 percent from December and 28 percent above last year. TheJanuary price, at 49.6 cents per pound, is up 1.7 cents from the previous month and 11.1 cents above lastJanuary.
Potatoes & Dry Beans: The January index, at 115, is unchanged from last month but 9.5 percent aboveJanuary 2005. The all potato price, at $7.00 per cwt, is up 7 cents from December and up $1.41 from lastJanuary. The all dry bean price, at $17.50 per cwt, is down $1.10 from the previous month and $9.70 belowJanuary 2005.
Fruits & Nuts: The January index, at 136, is up 12 percent from December and 19 percent higher than ayear ago. Price increases for oranges and grapefruit more than offset price decreases for lemons, apples, andstrawberries.
Commercial Vegetables: The January index, at 137, is down 19 percent from last month but 44 percentabove January 2005. Price decreases during January for lettuce, cucumbers, broccoli, snap beans, andcauliflower more than offset the price increase for tomatoes.
LIVESTOCK & PRODUCTS: The January index, at 117, is 2.5 percent below last month and down3.3 percent from January 2005. Compared with a year ago, prices are lower for dairy, hogs, and broilers buthigher for cattle, calves, eggs, and turkeys.
Meat Animals: The January index, at 121, is unchanged from last month and from last year. The Januaryhog price, at $41.60 per cwt, is down $2.70 from December and $11.60 lower than a year ago. The Januarybeef cattle price of $94.40 per cwt is up 80 cents from last month and $5.00 higher than January 2005.
Dairy Products: The January index, at 111, is down 1.8 percent from a month ago and 9.0 percent lowerthan January last year. The January all milk price of $14.50 per cwt is down 30 cents from last month anddown $1.40 from January 2005. The fluid grade milk price is down 20 cents and the manufactured grademilk price is down 30 cents from the previous month.
Poultry & Eggs: The January index, at 113, is down 8.1 percent from December and 7.4 percent below ayear ago. January market egg prices, at 43.8 cents per dozen, decreased 12.6 cents from December but is6.5 cents above January 2005. The January broiler price, at 38.0 cents per pound, is down 1.0 cent fromDecember and 5.0 cents below a year ago. The January turkey price, averaging 40.8 cents per pound, is down13.5 cents from the previous month but up 1.5 cents from a year earlier.
U.S. Prices Received and Indexes PageNarrative ............................................................... 2Price Indexes ........................................................ 5Price Index Charts ................................................ 6U.S. Prices Received Summary ........................... 10 Charts ................................................................ 12 Selected Commodities ...................................... 16 Upland Cotton & Rice Marketings ................... 19Parity Prices ....................................................... 26Reliability Statement .......................................... 57
Monthly State Prices ReceivedApples ................................................................ 19Barley ................................................................. 17Beans, Dry Edible .............................................. 18Beef Cattle, All ................................................... 22 Calves ............................................................... 22 Cows, Beef ....................................................... 22 Steers and Heifers ............................................. 22Citrus Fruit ......................................................... 20Corn .................................................................... 17
Monthly State Prices, continued PageCotton ................................................................. 19Cottonseed .......................................................... 19Eggs ................................................................... 24Flaxseed ............................................................. 18Grain Sorghum ................................................... 17Hay ..................................................................... 19Hogs, All ............................................................ 23 Barrows and Gilts ............................................. 23 Sows ................................................................. 23Milk .................................................................... 25 Milk Cows ........................................................ 25Oats .................................................................... 17Peanuts ............................................................... 18Potatoes .............................................................. 21Sheep .................................................................. 24 Lambs ............................................................... 24Soybeans ............................................................ 17Sunflower, All .................................................... 18Wheat, All Classes ............................................. 16
Prices Received Special Features Page
Marketing Year for Specified Commodities ........................................................................................................ 28
Monthly Price Revisions Apples ............................................................................... see January 2006 Noncitrus Fruits and Nuts - Preliminary
http:/usda.mannlib.cornell.edu/reports/nassr/fruit/pnf-bb/ Grapes ................................................................................ see January 2006 Noncitrus Fruits and Nuts - Preliminary
http:/usda.mannlib.cornell.edu/reports/nassr/fruit/pnf-bb/ Peaches ............................................................................... see January 2006 Noncitrus Fruits and Nuts - Preliminary
http:/usda.mannlib.cornell.edu/reports/nassr/fruit/pnf-bb/ Pears ................................................................................... see January 2006 Noncitrus Fruits and Nuts - Preliminary
http:/usda.mannlib.cornell.edu/reports/nassr/fruit/pnf-bb/ Rice ......................................................................................................................................................................... 29 Strawberries ......................................................................................................... see January 2006 Vegetables Annual
http:/usda.mannlib.cornell.edu/reports/nassr/fruit/pvg-bban/ Vegetables ........................................................................................................... see January 2006 Vegetables Annual
Marketing Year Average Prices Rice .......................................................................................................................................................................... 29 Sweet Potatoes ......................................................................................................................................................... 28
Index of Prices Received: U.S., All Groups, Monthly and Annual, 2002-2006 ....................................................... 48
Annual Parity Price Calculations Authority for Parity Prices, Method of Computation and Prices .............................................................................. 30 Adjusted Base Prices & January 2006 Parity Prices ................................................................................................. 32 Average Base Period Prices, U.S., 1910-14 .............................................................................................................. 37 Annual Average Prices Received for Parity Computations, U.S., by Years, 1996-2005 .......................................... 38 Parity Price Equivalent for Manufacturing Grade Milk ........................................................................................... 56
Prices Used to Calculate Feed Price Ratios ........................................................................................................... 64Feeder Livestock ................................................................................................................................................... 64
Special Features Private Non-Irrigated Grazing Fee Rates for Cattle by Selected States and Regions ............................................ 65Prices Paid Survey Estimates, Month Published and Level .................................................................................. 85
Index of Prices Paid: 1910-14=100 and 1990-92=100 Monthly and Annual Average, United States, 2002-2006 ..................................................................................................................................... 66-84PPITW, PITW, Production Items .......................................................................................................................... 66-67Index Component Items, Interest, Taxes, Wage Rates, Farm and Non Farm Origin ............................................. 67-74Ratios .................................................................................................................................................................... 75Crop Sector, Livestock Sector, and PPITW adjusted for Productivity .................................................................. 76Index Sub-Components (1990-92=100): Monthly and Annual Averages ............................................................ 77-84
Information Contacts .......................................................................................................................................... 87
1 Mid-month price. 2 Equivalent packinghouse-door returns for CA, MI, and NY (apples only), and WA (apples, peaches, and pears). Prices as sold for other states. 3 Marketing year August - February. 4 Price not published to avoid disclosure of individual firms. 5 Insufficient sales to establish a price. 6 Monthly price estimates discontinued beginning in July 2005.
Adjusted for Seasonal Variation Eggs, All Milk, All 5
DozCwt
0.5459.71
0.52616.22
0.63614.95
0.57014.80
1 Beginning January 2006, point of first sale. F.O.B. shipping point for prior years. 2 Monthly estimates began January 1995. 3 Beef cows and cull dairy cows sold for slaughter. 4 Animals sold for dairy herd replacement only. Prices available for Jan, Apr, Jul, and Oct. 5 Before deductions for hauling. Includes quality, quantity, and other premiums. Excludes hauling subsidies. 6 January 2006 Fat test percent: all milk 3.77, fluid milk 3.77, mfg grade 3.96. 7 Equivalent liveweight returns to producers for most States. Includes growers and contractors. 8 Mid-month price.
3.15 1 The Three-State (MN, ND and SD) Feed Barley price is discontinued. 2 Entire month. 3 Mid-month. 4 Price not published to avoid disclosure of individual firms. 5 Insufficient sales to establish a price.
Malting and Feed Barley: Prices Received Selected State,December and January 2006
StateMalting Barley Feed Barley
Dec 1 Jan 2 Dec 1 Jan 2
Dollars per Bushel Dollars per Bushel Dollars per Bushel Dollars per Bushel
IDMNMTNDSDWY
2.97( 3 )
3.042.212.06
( 3 )
( 3 )( 3 )
3.282.252.10
( 3 )
2.03( 3 )
1.651.471.47
( 4 )
2.00( 3 )
1.671.40
( 4 )( 3 )
1 Entire month. 2 Mid-month. 3 Price not published to avoid disclosure of individual firms. 4 Insufficient sales to establish a price.
Field Crops: Prices Received, by State, December and January 2006
StateDry Edible
BeansAll
Sunflower Flaxseed Peanuts 4
Dec 1 Jan 2 Dec 1 Jan 2 Dec 1 Jan 2 Dec 1 Jan 3
Dollars perCwt
Dollars perCwt
Dollars perCwt
Dollars perCwt
Dollars perBushel
Dollars perBushel
Dollars perPound
Dollars perPound
ALCACOFLGAIDINKSKYMDMIMNMONENCNDOHOKSCSDTNTXVAWV
US
44.8017.70
20.60
20.3019.00
16.40
14.90
18.60
45.7019.50
19.50
20.00( 5 )
16.10
13.90
17.50
8.49
16.00
12.00
12.60
11.60
8.09
15.60
11.50
11.40
11.30
5.82
( 6 )
5.82
5.60
( 6 )
5.60
( 5 )
( 5 )0.169
( 5 )
( 5 )0.218
0.177
( 5 )
( 5 )0.173
0.198
0.177( 5 )
0.176 1 Entire month. 2 Mid-month. 3 Based on sales through first half of month. 4 In-Shell. 5 Price not published to avoid disclosure of individual firms. 6 Insufficient sales to establish a price.
0.260 1 Entire month. 2 Based on sales during the first half of the month. 3 Mid-month. 4 Equivalent packinghouse-door returns for CA, MI, NY, and WA. Price at point of first sale for other States. 5 Marketing year August - February. 6 Price not published to avoid disclosure of individual firms. 7 Insufficient sales to establish a price.
Upland Cotton and Rice: Prices Received and Marketings,United States, January 2006, with Comparisons
Item Unit Nov 2005 1 Dec 2005 1 Jan 2006 2
Upland Cotton Average Price Marketings 3
Rice Average Price Marketings 4
Dollars per Pound1,000 Bales
Dollars per Cwt1,000 Cwt
0.4851,831
7.3415,288
0.4793,264
7.4916,064
0.496NA
7.40NA
1 Entire month. 2 Based on purchases for the first half of the month. 3 Marketings based on a survey of cotton buyers in the major producing States - AL, AZ, AR, CA, GA, LA, MS, NC, TN, and TX. 4 Purchases by private firms and rice (rough equivalent) shipped by cooperatives.
Potatoes: Prices Received, by State, December 2005 and January 2006 1
State Dec Jan State Dec Jan
Dollars per Cwt Dollars per Cwt Dollars per Cwt Dollars per Cwt
ALAZCA - All - Winter - Spring - Summer - FallCO - All 2
- Fresh 3
FLID - All 2
- Fresh 3
- ProcessingMEMIMNNY
10.0017.10
8.108.408.95
5.306.204.808.157.906.40
12.70
13.1017.00
8.108.70
NA
5.20NANA
8.208.406.05
12.80
NCND - All 2
- Fresh 3
- ProcessingOH 4
ORPA 4
TXVAWA - All - ProcessingWI - All 2
- Fresh 3
- Processing
US - All 2
- Fresh 3
- Processing
7.5510.30
6.60
5.85
6.305.558.909.457.10
6.938.965.52
7.05NANA
5.65
6.25NA
8.25NANA
7.00NANA
1 Missing data indicates no potatoes being marketed. 2 Average price of potatoes sold for all uses, including table stocks, processing, seed and livestock feed. 3 Fresh market prices only, includes table stock prices. 4 Estimates discontinued in 2005.
1,840 1 Entire month. 2 Including milk diverted to manufacturing. 3 Before deductions for hauling. Includes quality, quantity, and other premiums. Excludes hauling subsidies. 4 Preliminary. 5 Animals sold for dairy herd replacement only. Prices published January, April, July and October.
Parity Price Equivalent for Manufacturing Milk 1: United States,December and January 2006, with Comparisons
Item Unit Jan 2005 Dec 2005 Jan 2006
Parity EquivalentAverage Price F.O.B 2
Average Fat Test of Milk 2
Dollars per CwtDollars per CwtPercent
32.0814.90
3.93
34.2814.40
4.08
34.1514.10
4.03 1 The parity price equivalent during 2006 is 90.1 percent of the parity price of all milk sold to plants, compared with 91.4 percent in
2005. For additional details, see January 2006 issue of “Agricultural Prices”. 2 Preliminary for January 2006.
United States Parity Prices for Farm Products and Average Prices Received asPercent of Parity Prices Based on Data for January 2006, with Comparisons 1
Parity Prices Based on Data for January 2006, United States 1 (continued)
Other NonbasicCommodities
AdjBaseBase
ParityPrice
Other NonbasicCommodities
AdjBaseBase
ParityPrice
Dollars Dollars Dollars Dollars
Field Crops and Misc Commodities Hops, Lb Spearmint Oil, Lb Tobacco, Lb Flue-Cured, 11-14 VA Fire-Cured, 21 KY-TN Fire-Cured, 22-23 Burley, 31 Maryland, 32 Dark Air-Cured, 35-36 Sun-Cured, 37 PA Seedleaf, 41 Cigar Filler & Binder, 42-44, 54-55 Puerto Rican Filler, 46 Cigar Binder, 51-52 Type 61
Noncitrus Fruit Apples, Ton 6
Processing Apricots, Ton Fresh 7
Dried, CA Avocados, Ton 7
Cherries Sweet, Ton Tart, Lb Cranberry, Bbl 5
Dates, CA, Ton 7
Grapes, Ton Raisin Variety Other Dried Kiwifruit, Ton Nectarines Fresh, CA, Ton 7
0.2471.44
0.2470.258
0.3230.2660.202
0.2850.2370.201
0.222
0.159
0.7603.21
17.60
101.00270.00233.00
195.000.03405.35
214.00
121.0070.8089.20
61.20
4.7527.70
4.754.97
6.225.123.89
5.494.563.87
4.27
3.06
14.6061.80
339.00
1,940.005,200.004,490.00
3,750.000.655
103.004,120.00
2,330.001,360.001,720.00
1,180.00
Noncitrus Fruit, Continued Olives, CA canning, Ton 5
Papayas (HA) Peaches Fresh, Ton 4
Dried, CA, Ton Processing 5
Excl Dried Clingstone, CA, Ton Pears, Ton Fresh 4
Dried, CA 6
Plums, CA, Ton Fresh, Equiv on-Tree Prunes, Dried, CA, Ton 6
Prunes and Plums, Excl CA, Ton Fresh 9
Processing 6
Excl Dried
Tree Nuts 10
Almonds, Lb Hazelnuts, Ton Pistachio, Lb Walnuts, Ton
Vegetables, Cwt 11
Fresh Carrots 8
Cauliflower 8
Celery 8
Honeydew Melons Lettuce Onions 8
Tomatoes
92.300.0510
83.09
77.00
33.40
54.50171.00
60.10
132.00
62.40
28.80
0.221150.00
0.168173.00
2.304.441.912.642.361.654.61
1,777.000.982
1,600.00
1,480.00
643.00
1,050.003,290.00
1,160.00
2,540.00
1,200.00
554.00
4.252,890.00
3.233,330.00
44.3085.5036.8050.8045.4031.8088.70
1 Parity prices are computed under the provisions of Title III, Subtitle a, Section 301 (a) of the Agricultural Adjustment Actof 1938 as amended by the Agricultural Acts of 1948, 1949, and 1956. See January “Agricultural Prices” for details onadjusted base price and parity price computations.
2 Seasonally adjusted price as percentage of parity price. 3 Wholesale extracted. Adjusted base price derived from state annual averages prices weighted by production. For 1982
through 1985 the national averages are the support prices. 4 Equivalent packinghouse-door returns for CA, NY (apples only), OR (except peaches), and WA. Price at point of first sale
for other states. 5 Equivalent returns for bulk fruit at first delivery point. 6 Equivalent returns at processing plant door. 7 Equivalent returns at packinghouse door. 8 Includes some processing. 9 Based on “as sold” prices for fresh fruit in all states.10 Prices in-shell basis except almonds which are shelled basis.11 F.O.B. shipping point prices.
Apples (Fresh): July1 to June 30 for U.S.; June 1 to May 31 for Arkansas, California, Georgia, Illinois,Iowa, Indiana, Kansas, Kentucky, Michigan, Missouri, New Mexico, North Carolina, Ohio, South Carolina,Tennessee, Wisconsin; August 1 to July 31 for Oregon and Washington; July 1 - June 30 for Arizona, Colorado, Connecticut, Idaho, Maine, Maryland, Massachusetts, NewHampshire, New Jersey, New York, Pennsylvania, Rhode Island, Utah, Vermont, Virginia, West Virginia.
Grapes (Fresh): May 25 to April 30 for U.S.; June 5 to July 15 for Arizona; May 25 to April 30 forCalifornia; July 10 to October 31 for Arkansas, Georgia, Michigan, Missouri, New York, North Carolina,Ohio, and Pennsylvania.
Peaches (Fresh): May 1 to October 31 for U.S.; May 20 to August 31 for Georgia and South Carolina; June1 to September 30 for Alabama, Arkansas, California, Colorado, Illinois, Kentucky, Louisiana, Missouri,North Carolina, Ohio, Oklahoma, Tennessee, Texas, Utah, and Virginia, August 1 to September 30 forConnecticut, Massachusetts, Idaho, Michigan, and New York; July 1 to September 30 for Indiana, Maryland,New Jersey, Oregon, Pennsylvania, Washington, and West Virginia.
Pears (Fresh): July to June for U.S.; July 1 - April 30 for California; August 10 to May 31 for Oregon andWashington; July 1 to December 15 for Colorado, Connecticut, Michigan, New York, Pennsylvania, andUtah.
Rice: August 1 to July 31 for U.S.; July 1 to June 30 for Louisiana and Texas; August 1 to July 31 forArkansas and Mississippi; October 1 to September 30 for California; September 1 to August 31 for Missouri.
Sweet Potatoes: July - June for U.S.; July 1 - June 30 for Alabama and California; July 1 - May 31 forGeorgia, Louisiana, North Carolina and Texas; August 1 - May 31 for South Carolina, and Virginia; andAugust 1 - July 31 for New Jersey.
Sweet Potatoes: Marketing Year Average Prices Received,by State and United States, 2003-2005
1 Marketing year average (MYA) prices are weighted average prices for the U.S. marketing year of August - July. 2 Purchases from producers as reported by private firms and rice (rough equivalent) shipped from producers as reported by
cooperative mills. 3 Second year. 4 Prices and marketings include late reports and revised data for August 2005 - November 2005.
Parity prices based on data for January 2006 and adjusted base price data from which parity prices arecomputed, are presented in the table on pages 32 through 35. Annual average prices for 1995 through 2004for use in parity computations, and ten-year averages for 1995-2004 and 1996-2005 are shown on pages 38through 47.
Parity Prices shown on the following pages are computed under the provisions of Title III. Subtitle A, Section301(a) of the Agricultural Adjustment Act of 1938 as amended by the Agricultural Acts of 1948, 1949, 1954,and 1956.
The major provisions of the amended Act relating to the calculation of parity prices are as follows:
"(1) (A) The 'parity price' for any agricultural commodity, as of any date, shall be determined by multiplyingthe adjusted base price of such commodity as of such date by the parity index as of such date.
"(B) The 'adjusted base price' of any agricultural commodity, as of any date, shall be (i) the average of theprices received by farmers for such commodity, at such time as the Secretary may select during each year ofthe ten-year period ending on the 31st of December last before such date, or during each marketing seasonbeginning in such period if the Secretary determines use of a calendar year basis to be impracticable, dividedby (ii) the ratio of the general level of prices received by farmers for agricultural commodities during theperiod January 1910 to December 1914, inclusive.
"(C) The 'parity index', as of any date, shall be the ratio of (i) the general level of prices for articles andservices that farmers buy, wages paid hired farm labor, interest on farm indebtedness secured by farm realestate, and taxes on farm real estate, for the calendar month ending last before such date to (ii) the generallevel of such prices, wages, rates, and taxes during the period January 1910 to December 1914, inclusive.
"(D) The prices and indexes provided for herein, and the data used in computing them, shall be determined bythe Secretary, whose determination shall be final."
Section 301(a) (1) (F) outlines authority for the Secretary of Agriculture to make special adjustments in themethod of computing parity prices for particular commodities if the method outlined in the Act results inparity prices seriously out of line with those of other commodities.
The parity prices shown in this report are based on the provisions of the amended Act. Briefly, the actualmethod of computation is as follows:
a. The average of prices received by farmers for individual commodities for the 10 preceding years iscalculated (for 2006 this is the 1996-2005 average). An allowance for unredeemed loans and othersupplemental payments resulting from price support programs, such as the deficiency payments for grains andcotton, is included for those commodities for which applicable.
b. This 10-year average is divided by the average of the Index of Prices Received by Farmers for the same 10preceding calendar years, adjusted to include an allowance for unredeemed loans and other supplementalprice support operations, to give an "adjusted base price".
c. Parity prices are computed by multiplying the "adjusted base prices" by the current Parity Index (the Indexof Prices Paid by Farmers, including Interest, Taxes, and Wage Rates, 1910-14=100).
Parity prices are calculated in terms of prices received by farmers in the local markets in which they ordinarilysell. This means that the parity prices apply to the average of all classes and grades of the commodity as soldby all farmers in the United States, except as otherwise specified. Fruits and vegetables for fresh use and forprocessing are usually considered separate commodities and separate parity prices are calculated. TheAgricultural Marketing Agreement Act of 1937 provided for parity prices for certain commodities covered bya marketing agreement or order program. Under present legislation, U.S. parity prices, with appropriateadjustments where needed, may be used for the purpose of this Act.
The indexes used in the computation of parity prices are published currently in "Agricultural Prices".
For the purpose of illustrating the computation of parity prices, the calculation of the parity price for cornbased on data for January 2006 is given below.
The 120-month, January 1996-December 2005 average of prices received by farmers for corn was $2.85 perbushel, adjusted to allow for unredeemed loans and other supplemental payments resulting from price supportoperations. The 120-month average of the Index of Prices Received by Farmers, adjusted to include anallowance for unredeemed loans, etc., was 716 (1910-14=100). Dividing $2.85 by 7.16 gives $0.398 perbushel, the adjusted base price which is multiplied by 1925 percent, the Parity Index (1910-14=100), basedon data for January 2006. This gives $7.76 per bushel, the parity price of corn during January 2006.
Average Base Period Prices Received by Farmers, US, 1910-14
CommodityPricePerUnit
AverageJan 1910-Dec 1914
CommodityPricePerUnit
AverageJan 1910-Dec 1914
All WheatRice RoughCornOatsAll BarleyAll Hay, BaledCottonPeanutsCottonseedFlaxseedPotatoes
The parity ratio (the Index of Prices Received by Farmers for the products they sell divided by the ParityIndex (1910-14=100) provides an indication of the per unit purchasing power of farm commodities generallyin terms of the goods and services currently bought by farmers, in relation to purchasing power of farmproducts in the 1910-14 base period. Thus, a Parity Ratio less than 100 indicates that the average per unitpurchasing power of all farm products is lower than during the 1910-14 period.
The parity ratio is a measure of price relationships; not a measure of farm income, farmers' total purchasingpower, or farmers' welfare. The latter depends upon a number of factors other than price relationships, suchas changes in production efficiency and technology, quantities of farm products sold, and supplementaryincome, including that from off-farm jobs and federal programs.
An adjusted parity ratio is computed and published which incorporates supplementary income for federalfarm programs. A "preliminary adjusted parity ratio reflecting government payments" based on the forecastof direct government payments for the year is published each quarter in "Agricultural Prices".
Adjusted Base Prices and United States Parity PricesBased on Data for January, 2006
Commodity and UnitAdjusted
BasePrice 1
Parity PriceBased ondata for
Jan 2006 2
Dollars Dollars
Basic Commodities All Wheat, Bu 3
Rice, Cwt 3
Corn, Bu 3
Cotton, Lb American Upland 3
Extra Long Staple Peanuts, Lb Tobacco, Lb Flue-Cured, Types 11-14 VA Fire-Cured, Type 21 KY-TN Fire-Cured, Types 22-23 Burley, Type 31 Maryland, Type 32 Dark Air-Cured, Types 35-36 Sun-Cured, Type 37 PA SeedLeaf, Type 41 Cigar Filler & Binder, Types 42-44, 54-55 Puerto Rican Filler, Type 46 Cigar Binder, Types 51-52
Designated Nonbasic Commodities Soybeans, Bu 3
All Milk Sold to Plants, Cwt Honey, Wholesale, Lb Extracted
Wool and Mohair Wool, Lb 3
Mohair, Lb
Other Nonbasic Commodities Field Crops and Misc All Barley, Bu 3
Canola, Cwt Cottonseed, Ton All Dry Edible Beans, Cwt Flaxseed, Bu All Hay, Baled, Ton Hops, Lb Mustard Seed, Cwt Oats, Bu 3
Peppermint Oil, Lb 3
All Potatoes, Cwt Rapeseed, Cwt Rye, Bu Safflower, Cwt Sorghum Grain, Cwt 3
Spearmint Oil, Lb All Sunflower, Cwt Sweet Potatoes, Cwt Tobacco, Cigar Wrapper Type 61, Lb
Adjusted Base Price and United States Parity PricesBased on data for January 2006 (continued)
1 Adjusted base price 1910-14 derived by dividing the average of 10 season average prices 1996-2005,including an allowance where appropriate for unredeemed loans and other supplemental paymentsresulting from price support operations, by 716 percent (120-month, Jan 1996-Dec 2005 average of theindex of prices received by farmers adjusted to include an allowance for unredeemed loans and othersupplemental payments) unless otherwise noted.
2 These parity prices are the legally applicable parity prices for the following calendar month. 3 Adjusted base price 1910-14 derived from 120-month, Jan 1996-Dec 2005 average including an
allowance where appropriate for unredeemed loans and other supplemental payments resulting fromprice support operations.
4 Equivalent packinghouse-door returns for CA, MI, NY (apples only), and WA (apples, peaches, andpears). Prices "as sold" for other states.
5 Equivalent returns at packinghouse-door. 6 Equivalent returns at processing plant door. 7 Equivalent returns for bulk fruit at first delivery point. 8 Based on ‘as sold’ prices for fresh fruit in all states. 9 Average F.O.B. shipping point prices.10 Relates to prices including average conditional payments per ton made under the sugar acts of 1937 and
1948. Crop deficiency and abandonment payments not included.11 Prices on in-shell basis except almonds which are on shelled basis.12 Includes some processing.13 The 2005 marketing year average prices are not yet available for these commodities. Therefore, the
adjusted base prices are brought forward from 2004, except citrus items (excluding limes) andcranberries.
14 Monthly and/or season average prices are no longer estimated for these items. Therefore, the adjustedbase price is brought forward from July 1986.
15 Monthly and/or season average prices are no longer estimated for this item. The adjusted base price isbrought forward from 1988.
Basic Commodities Corn, Bu Cotton, Upland, Lb All Wheat, Bu Rice, Cwt
Designated Nonbasic Comm All Milk, Cwt
Other Nonbasic Comm Field Crops and Misc All Barley, Bu All Dry Beans, Cwt Flaxseed, Bu All Hay, Baled, Ton Oats, Bu Sorghum, Cwt Soybeans, Bu All Sunflower, Cwt
Fruit Apples, Fresh, Lb 4
Livestock and Products Beef Cattle, Cwt Calves, Cwt Eggs, Doz All Hogs, Cwt Lambs, Cwt Sheep, Cwt Turkeys, Lb
Prices Received by Farmers used to Calculate Parity Pricesfor Agricultural Commodities, United States, 1996 - 2005 1 (continued)
Commodity and Unit 2003 2004 2005 1995-04Average
1996-05 Average
AsComputed
For ParityPurposes 2
(1910-14=100)
Index of PricesReceived by Farmers 677 757 737 660 669 716
Calendar Year Average Prices 3
Dollars Dollars Dollars Dollars Dollars Dollars
Basic Commodities Corn, Bu Cotton, Upland, Lb All Wheat, Bu Rice, Cwt
Designated Nonbasic Comm All Milk, Cwt
Other Nonbasic Comm Field Crops and Misc All Barley, Bu All Dry Beans, Cwt Flaxseed, Bu All Hay, Baled, Ton Oats, Bu Sorghum, Cwt Soybeans, Bu All Sunflower, Cwt
Fruit Apples, Fresh, Lb 4
Livestock and Products Beef Cattle, Cwt Calves, Cwt Eggs, Doz All Hogs, Cwt Lambs, Cwt Sheep, Cwt Turkeys, Lb
Prices Received by Farmers used to Calculate Parity Pricesfor Agricultural Commodities, United States, 1996-2005 1 (continued)
Commodity and Unit 2002 2003 2004 2005 1995-04Average
1996-05Average
Marketing Year Average Prices 5
Dollars Dollars Dollars Dollars Dollars Dollars
Basic Commodities Cotton, Long Staple, Lb Peanuts, Lb 17
Tobacco, Lb Types 11-14 Type 21 Ky-Tn Fire-Cured, Types 22-23 Burley, Type 31 Type 32 Types 35-36 Sun-Cured, Type 37 20
PA Seedleaf, Type 41 Cigar Filler & Binder Types 42-44, 54-55 21
Types 51-52
Designated Nonbasic Comm Honey, Lb
Wool and Mohair 8
Wool, Lb Mohair, Lb
Other Nonbasic Comm Field Crops and Misc Canola, Cwt Cottonseed, Ton Hops, Lb Mustard Seed, Cwt Peppermint Oil, Lb Potatoes, Cwt Rapeseed, Cwt Rye, Bu Safflower, Cwt Spearmint Oil, Lb Sweet Potatoes, Cwt
0.8600.182
1.8201.884
2.3781.9741.3482.1011.7781.450
1.7505.372
1.327
0.5301.58
10.60101.00
1.9115.4011.90
6.679.733.32
12.209.11
16.80
1.2100.193
1.8511.641
2.4751.9771.4632.1571.7071.400
1.7463.584
1.387
0.7301.66
10.60117.00
1.8616.0012.00
5.8911.00
2.9313.70
9.2919.20
0.8780.189
1.8451.798
2.5401.9941.3082.1941.4761.450
1.7505.309
1.085
0.8001.96
10.70107.00
1.8815.2011.90
5.6714.10
3.2212.10
9.4817.50
1.1800.174
1.4522.100
2.3771.5641.3002.137
( 6 )1.350
( 6 )5.850
( 6 )
0.7102.78
9.4095.00
1.9513.5012.00( 6 )14.30
3.3212.6010.3019.60
0.9900.247
1.8001.803
2.2901.9341.4702.0031.6991.451
1.5585.245
0.814
0.6302.33
10.10110.00
1.7713.9012.00
5.8911.30
2.5013.6010.3016.70
0.9850.247
1.7671.849
2.3111.9051.4432.041
( 6 )1.441
( 6 )5.441
( 6 )
0.5972.43
9.92110.00
1.7714.0012.00( 6 )11.50
2.5413.4010.3016.30
1 Average used to compute “adjusted base prices”. 2005 and 1996-2005 averages are preliminary. 2 Includes an allowance forprice support operations as authorized by the Secretary of Agriculture, January 30, 1956. This entry is omitted for commoditiesnot affected by the adjustment. 3 Simple average of monthly prices. Due to rounding differences, the 10-year average of thesedata might differ slightly from the 120-month averages shown in the 1995-2004 and 1996-2005 columns. 4 Equivalentpackinghouse-door returns for CA, NY (applies only starting in 1985), OR (except peaches), and WA. Prices “as sold” for otherstates. 5 Unless otherwise noted these prices are the averages for the marketing season computed by weighting state prices byquantities sold. 6 Not available. 7 Price for year harvested, from Tobacco Division, AMS. 8 Average local market price; doesnot include incentive payment per pound, the 1995-2004 and 1996-2005 averages for parity purposes include this allowance. 9
Consistent with legislation quoted in this report, citrus prices shown for 2004 relate to the citrus crop designated as 2004-2005 inthe production reports. 10 Equivalent returns at processing plant door. 11 Equivalent returns at packinghouse-door. 12 Equivalent returns for bulk fruit at first delivery point. 13 Based on “as sold” prices for fresh fruit in all states. 14 Average F.O.B.shipping point prices. 15 Includes strawberries for processing in states where the processing crop is not estimated separately. 16 Prices include average conditional payments per ton made under the sugar acts of 1937 and 1948. Crop deficiency andabandonment payments not included. 17 Prices on in-shell basis except almonds which are on shelled basis. 18 Includes someprocessing. 19 Marketing year average prices not published to avoid disclosure of individual firms. 20 None grown in 2005. 21 Estimates discontinued in 2005.
Prices Received by Farmers used to Calculate Parity Pricesfor Agricultural Commodities, United States, 1996-2005 1
Commodity and Unit 1996 1997 1998 1999 2000 2001
Marketing Year Average Prices 5
Dollars Dollars Dollars Dollars Dollars Dollars
Nonbasic Commodities Tobacco, Cigar Wrapper Type 61, Lb
Fruit, Citrus (Equiv On-Tree) Box 10
Grapefruit Lemons Oranges Tangerines Temples
Fruit, Deciduous and Other Apples, Ton 11
Processing Apricots, Ton Fresh 14
Processing 11
Dried (CA) Excl Dried Avocados, Ton Cherries Sweet, Ton Tart, Lb Cranberries, Bbl Dates, (CA) Ton Grapes, Ton Raisin Varieties Dried (CA) Excl Raisin Var Dr Kiwifruit, Ton 12
Prices Received by Farmers used to Calculate Parity Pricesfor Agricultural Commodities, United States, 1996-2005 1 (continued)
Commodity and Unit 2002 2003 2004 2005 1995-04Average
1996-05Average
Marketing Year Average Prices 5
Dollars Dollars Dollars Dollars Dollars Dollars
Nonbasic Commodities Tobacco, Cigar Wrapper Type 61, Lb
Fruit, Citrus (Equiv On-Tree) Box 10
Grapefruit Lemons Oranges Tangerines Temples
Fruit, Deciduous and Other Apples, Ton 11
Processing Apricots, Ton Fresh 14
Processing 11
Dried (CA) Excl Dried Avocados, Ton Cherries Sweet, Ton Tart, Lb Cranberries, Bbl Dates, (CA) Ton Grapes, Ton Raisin Varieties Dried (CA) Excl Raisin Var Dr Kiwifruit, Ton 12
1 Average used to compute “adjusted base prices”. 2005 and 1996-2005 averages are preliminary. 2 Includes an allowance forprice support operations as authorized by the Secretary of Agriculture, January 30, 1956. This entry is omitted for commoditiesnot affected by the adjustment. 3 Simple average of monthly prices. Due to rounding differences, the 10-year average of thesedata might differ slightly from the 120-month averages shown in the 1995-2004 and 1996-2005 columns. 4 Equivalentpackinghouse-door returns for CA, NY (applies only starting in 1985), OR (except peaches), and WA. Prices “as sold” for otherstates. 5 Unless otherwise noted these prices are the averages for the marketing season computed by weighting state prices byquantities sold. 6 Not available. 7 Price for year harvested, from Tobacco Division, AMS. 8 For 1984 through 1986 the nationalaverages are the support prices. 9 Average local market price; does not include incentive payment per pound, the 1995-2004 and1996-2005 averages for parity purposes include this allowance. 10 Consistent with legislation quoted in this report, citrus pricesshown for 2004 relate to the citrus crop designated as 2004-2005 in the production reports. 11 Equivalent returns at processingplant door. 12 Equivalent returns at packinghouse-door. 13 Equivalent returns for bulk fruit at first delivery point. 14 Based on“as sold” prices for fresh fruit in all states. 15 Average F.O.B. shipping point prices. 16 Includes strawberries for processing instates where the processing crop is not estimated separately. 17 Prices include average conditional payments per ton made underthe sugar acts of 1937 and 1948. Crop deficiency and abandonment payments not included. 18 Prices on in-shell basis exceptalmonds which are on shelled basis. 19 Includes some processing. 20 Marketing year average prices not published to avoiddisclosure of individual firms.
Indexes of Prices Received by Farmers, by Month and Annual Average,United States, 2002-2006
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 1
Cotton1910-14 = 100
20022003200420052006
231385526325419
237393523324
240411521341
230384510350
226388505335
285385506354
298391455347
292391411356
303471428374
333573428410
363533365410
374535332405
284437459361419
1990-92 = 100
20022003200420052006
4575
1036482
4677
10263
4780
10267
4575
10068
44769965
56759969
58768968
57768069
59928373
65112
8380
71104
7180
73104
6579
5685907082
Tobacco 3
1910-14 = 100
2002200320042005
1761181718221857
1704180018911917
1478157018301265
1065574
1265
16091557
15611570
157416351648
160916431661
173917261726
173517351743
1641161214211369
1990-92 = 100
2002200320042005
116120120123
113119125127
98104121
84
703884
106103
103104
104108109
106109110
115114114
115115115
108107
9491
1 Simple average required for parity regulations. Weighted 1990-92 average equals 100. Average is year-to-date for current year. 2 Missing data indicates insufficient sales volume to establish a price. 3 Monthly prices discontinued July 2005.
Parity Price Equivalent for Manufacturing Grade Milk
By direction of the Secretary of Agriculture, the parity price equivalent for manufacturing grade milk isdetermined as follows: (1) Based on data for the 10 calendar years immediately preceding, compute the ratioof (a) the average price received by farmers, f.o.b. plant, for all manufacturing grade milk to (b) the averageprice by farmers, f.o.b. plant, for all milk sold to plants and dealers. (2) The parity price for all milk sold toplants is multiplied by the resulting ratio of (a) to (b) to determine the parity price equivalent formanufacturing milk. The parity price equivalent for manufacturing milk is not in itself a parity price butrather is an administrative determination based on the above price relationship.
The ratio is computed in January of each year and is used throughout the calendar year. The ratio to be usedduring 2006 is 90.1, down 1.3 points from 2005. The parity price for all milk sold to plants is $37.90 per cwt. This price multiplied by 90.1 percent, results in $34.15 per cwt as the parity price equivalent formanufacturing milk of average milkfat content. In 2005, the simple average of monthly fat tests formanufacturing grade milk was 3.86 percent. The fat test ranged from a low of 3.68 in July to a high of 4.08percent in December.
Average price January 1996 - December 2005
a. Manufacturing grade milk .................................................................................................................. 12.70b. All milk sold at wholesale to plants and dealers ................................................................................. 14.10c. Ratio a/b ............................................................................................................................................... 90.1
Parity price equivalent for manufacturing grade milk - United States
a. January 2005 ....................................................................................................................................... 32.08b. December 2005 .................................................................................................................................. 34.28c. January 2006 ....................................................................................................................................... 34.15
Manufacturing Grade Milk: Average Price Per Cwt Received 1,by Month, United States, January 1996-December 2005
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Definition: Prices received represent sales from producers to first buyers. They include all grades andqualities. The average commodity price from the survey multiplied by the total quantity marketedtheoretically should give the total cash receipts for the commodity.
Survey Procedures: Primary sales data used to determine grain prices were obtained from probabilitysamples of about 2000 mills and elevators. These procedures ensure that virtually all grain moving intocommercial channels has a chance of being included in the survey. Generally, States surveyed account for90 percent or more of total U.S. production. Livestock prices are obtained from packers, stockyards, auctions,dealers, and market check data from AMS-USDA, private marketing organizations, and state commoditygroups and agencies. Inter-farm sales of grain and livestock are not included since they represent very smallpercentages of the total marketings. Grain marketed for seed is also excluded. Fruit and vegetable prices areobtained from sample surveys and market check data from AMS-USDA, private marketing organizations,state agencies, and universities.
Summary and Estimation Procedures: Survey quantities sold are expanded by strata to state levels andused to weight average strata prices to a state average. State prices are then weighted to a U.S. price based onexpanded marketings. Recommendations are prepared by the State Field Offices and reviewed by theAgricultural Statistics Board in Washington, D.C. State recommendations are reviewed for reasonablenesswith survey data, other States, and recent historic estimates.
Revisions: For most items, the current month's preliminary price represents a 3-5 day period around the 15th
of the month. Previous month's prices represent actual dollars received for quantities sold during the entiremonth. Revisions are published in monthly issues of Agricultural Prices.
Reliability: U.S. price estimates based on probability surveys generally have a sampling error of less thanone percent for the major commodities such as corn, wheat, soybeans, cotton, and rice. Current methods ofsummarization for non-probability commodities are not designed directly to calculate sampling errors. However, analytical measures approximate the U.S. relative sampling errors at around five percent. Anynonsampling errors are attributed to such things as the inability to obtain correct information, differences ininterpreting questions or definitions, mistakes in coding or processing the data, etc. Efforts are made at eachstep in the survey process to minimize these nonsampling errors.
The January Index of Prices Paid for Commodities and Services, Interest, Taxes, and Farm Wage Rates(PPITW), at 145 (1990-92=100), increased 1.4 percent from December 2005 and is up 5.8 percent fromJanuary 2005.
PRODUCTION INDEX: The January index, at 144, increased 0.7 percent from last month and 7.5 percentfrom last year. Higher prices in January for gasoline, LP gas, complete feeds, and feed supplements morethan offset lower prices for feeder cattle, feed concentrates, milk cows, and potash & phosphate materials.
Feed: The January index, at 118, increased 0.9 percent from December and 5.4 percent from last January. Since December, higher prices for complete feeds, feed supplements, and feed grains more than offset lowerprices for feed concentrates.
Livestock & Poultry: The January index for livestock and poultry purchases, at 145, decreased 1.4 percentfrom last month but increased 8.2 percent from last year. Since December, lower prices for feeder cattle andmilk cows more than offset higher prices for feeder pigs. The January feeder cattle price, at $120.70 per cwt,is down $3.10 per cwt from the December price. January feeder pigs averaged $161.00 per cwt, up $5.00 percwt from December.
Fertilizer: The January index, at 180, is up 0.6 percent from December and 18 percent above January a yearago. Since December, higher prices for nitrogen fertilizers more than offset lower prices for potash &phosphate materials.
Agricultural Chemicals: The January index, at 121, is unchanged from December but increased 1.7 percentfrom January 2005.
Fuels: The January index, at 243, is up 2.5 percent from a month earlier and 43 percent above January 2005. Compared with last month, prices are higher for gasoline, LP gas, and diesel fuel.
Farm Machinery: The January index, at 172, is unchanged from December but 1.8 percent above lastJanuary.
CONSUMER PRICE INDEX: The December 2005 Consumer Price Index for all urban consumers (CPI-U) decreased 0.4 percent before seasonal adjustment to a level of 196.8 (198-84=100). This compares withthe November index of 197.6. For the 12-month period ending in December, the overall index has increased3.4 percent.
* Revised. 1 Interest per acre on farm real estate debt and interest rate on farm non-real estate debt. 2 Farm real estate taxes payable per acre. 3 Bureau of Labor Statistics, Consumer Price Index for all urban consumers (CPI-U), for the previous month converted by the
USDA. 4 Ratio of index of prices received to PPITW (1910-14=100). 5 Based on estimated cash receipts, from marketings and government payments, the preliminary adjustment factor is 1.079 for 2006
and the revised factor is 1.096 for 2005. 6 PPITW is adjusted based on productivity trend for the prior 15 years.
Grazing Fee Rates for Cattle by Selected States and Regions
State
Survey Average Rates 1
Animal Unit 2 Cow-Calf Per Head
2004 2005 2004 2005 2004 2005
Dollars per Month Dollars per Month Dollars per Month Dollars per Month Dollars per Month Dollars per Month
AZ
CA
CO
ID
KS
MT
NE
NV
NM
ND
OK
OR
SD
TX
UT
WA
WY
17-State 3
16-State 4
11-State 5
9-State 6
8.00
14.50
13.50
12.20
13.00
15.90
23.00
10.60
9.70
13.00
8.00
13.00
17.60
10.00
11.80
10.80
13.90
13.10
14.30
13.30
13.00
8.00
15.40
14.50
12.50
13.50
16.20
22.50
12.20
9.50
13.70
8.00
13.00
18.40
9.40
11.60
9.70
14.80
13.20
14.60
13.70
13.00
( 7 )
19.50
15.00
14.20
16.50
17.40
27.50
12.00
11.90
14.20
10.00
15.10
21.50
10.80
13.80
12.50
16.00
15.30
17.10
15.50
15.10
( 7 )
20.50
16.00
14.60
16.50
18.70
27.50
12.50
11.50
16.00
10.00
15.70
21.90
9.00
13.60
12.50
17.00
15.20
17.60
16.20
14.80
9.00
15.50
14.00
12.60
13.50
16.20
25.20
12.00
11.00
13.50
8.50
12.50
19.20
9.80
13.10
10.80
14.30
13.70
15.20
13.80
13.60
9.50
17.00
14.30
13.00
14.00
17.30
25.00
12.50
10.80
14.50
8.00
12.80
19.50
9.90
13.00
12.20
15.50
14.00
15.60
14.60
13.80 1 The average rates are estimates based on survey indications of monthly lease rates for private, non-irrigated grazing land from the
January Cattle Survey. 2 Includes animal unit plus cow-calf rates. Cow-calf rate converted to animal unit (AUM) using (1 aum=cow-calf *0.833). 3 17 Western States: All States listed. 4 16 Western States: All States except Texas. 5 11 Western States: AZ, CA, CO, ID, MT, NV, NM, OR, UT, WA, and WY. 6 9 Great Plains States: CO, KS, NE, NM, ND, OK, SD, TX, and WY. 7 Insufficient data.
Prices Paid Indexes: Monthly and Annual AverageUnited States, 2002-2006
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 1
Family Living1910-14 = 100
20022003200420052006
16821726175918111869
1689173917681822
1698174917801836
1708174617861848
1708174317961846
1709174518021847
1711174717991856
1716175318001865
1719175918041888
1722175718131892
1722175218141877
1718175018071869
17091747179418551869
1990-92 = 100
20022003200420052006
131135137141146
132136138142
133137139143
133136139144
133136140144
133136141144
134136141145
134137141146
134137141147
134137142148
134137142147
134137141146
133136140145146
Production Items With Farm Origin 2
1990-92 = 100
20022003200420052006
112115122127136
112115123126
112113126130
112116132134
110117135134
110117135135
112116136135
114115132133
116120130133
115123129136
116125126136
117124124136
113118129133136
Production Items With Non-Farm Origin 3
1990-92 = 100
20022003200420052006
120125129137148
120127129138
121129130140
121127131141
121126131140
122126131142
122126132142
122127133143
123127134145
123127136148
123127136146
123127134146
122127132142148
1 Simple average and is year-to-date for current year. 2 Feed, livestock and poultry purchases, and seed. 3 Fertilizer, agricultural chemicals, fuels, farm supplies and repairs, autos and trucks, farm machinery, building materials, and farm
Prices Paid Indexes: Monthly and Annual AverageUnited States, 2002-2006
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Avg 1
Parity Ratio 2
1910-14 = 100
20022003200420052006
3738413937
38374240
41374441
36384541
37394641
38404540
38394440
38414339
38414139
36424037
37434138
37424038
3840433937
Adjusted Parity Ratio 3
1910-14 = 100
20022003200420052006
3940434340
41404543
43404745
39414745
39434845
40434844
40434643
41444543
40454343
38454240
39464341
39464242
4043454340
Ratio1990-92 = 100
20022003200420052006
7879868177
80788983
85779286
76789486
78839585
79849585
80839283
81869082
78878782
76888477
78908579
78898380
7984898277
1 Simple average and is year-to-date for current year. 2 Ratio of index of prices received by farmers to index of prices paid for commodities and services, interest, taxes, and wage rates. 3 Ratio of the index of prices received by farmers after adjustment for government payments to the index of prices paid for
commodities and services, interest, taxes, and wage rates.
Prices Paid Survey Estimates, Month Published and Level
Survey2005 Program Schedule 1
Survey and Publication Month Level of Estimates
Feed Apr Farm Production Regions and US
Feeder Livestock Monthly US
Seed Apr US
Fertilizer Apr Fertilizer Regions and US
Agricultural Chemicals Apr US
Fuels Apr Farm Production Regions and US
Farm Machinery Apr US
Grazing Fees Jan 2 States and Regions 1 Data collection and publication schedule for average prices paid by producers. 2 Survey estimates for previous year.
Definition: Prices paid by farmers represent the average costs of inputs purchased by farmers and ranchers toproduce agricultural commodities. Conceptually, the average price when multiplied by quantity purchasedshould equal total producer expenditures for the item.
Survey Procedures: The prices paid data are obtained from establishments that sell goods and services tofarmers and ranchers. Annually, about 8,500 firms are randomly selected from lists by type of item sold withan average response rate in the range of 75-80 percent. Firms are asked to report the price for the specifieditem "most commonly bought by farmers" or that was the "volume seller". Approximately 135 items aresurveyed each April to represent all production input items purchased. The survey reference period for mostitems is the 5 business days centered around the 15th of the month. Separate prices paid surveys areconducted for agricultural chemicals, fuels, feed, fertilizer, machinery, and seed.
Summary and Estimation Procedures: The annual April Prices Paid Survey is summarized as anonprobability survey. Average prices reported are aggregated to the region and U.S. level using weightsavailable from expenditure data and other administrative sources. Price recommendations are prepared by theState Field Offices and Headquarters for review by the Agricultural Statistics Board in Washington, D.C. Also, the change in price level for individual items surveyed are combined to the regional and U.S. levels, andare published as prices paid indexes referenced to a specific base period. Prices paid indexes for new autosand trucks, building materials, farm supplies, motor supplies, and marketing containers are updated based onprice changes measured in selected Bureau of Labor Statistics (BLS) indexes.
Revisions: Any revisions are published in the monthly and in annual issues of Agricultural Prices. The basisfor revision must be supported by additional data that directly affect the level of the estimate. More revisionsare likely in April when separate prices paid surveys are conducted, in lieu of BLS indexes, by the USDA tomeasure price change.
Reliability: Current methods of summarization in April are not designed directly to calculate samplingerrors. However, analytical measures approximate the U.S. relative sampling errors for major items around10 percent. Any nonsampling errors are attributed to such things as the inability to obtain correct information,differences in interpreting questions or definitions, mistakes in coding or processing the data, etc. Efforts aremade at each step in the survey process to minimize these nonsampling errors.
Program Change: Effective January 1, 1995, the National Agricultural Statistics Service updated theweights and changed the construction of its prices paid and received by farmers indexes. A Federal RegisterNotice dated October 28, 1994 discussed these program modifications.
A 1990-92 reference and base period replaced the 1977 reference and 1971-73 base weight period. Five-yearmoving average weights replaced the current fixed 1971-73 base period weights. The 1910-14=100 priceindexes, required by statute for computing parity prices, were linked forward based on the changes in the new1990-92=100 indexes. The new indexes were constructed by multiplying the ratios of the current prices tothe base period prices by the moving average weights (adjusted for seasonal marketing patterns for the pricesreceived indexes).
General questions should be directed to Linda Hutton, Chief, Environmental, Economics and DemographicsBranch at (202) 720-6146. Below are the commodity specialists to contact for additional information.
For your convenience, there are several ways to obtain NASS reports, data products, and services:
INTERNET ACCESS
All NASS reports are available free of charge on the worldwide Internet. For access, connect to the Internet and goto the NASS Home Page at: www.nass.usda.gov.
E-MAIL SUBSCRIPTION
All NASS reports are available by subscription free of charge direct to your e-mail address. Starting with the NASSHome Page at www.nass.usda.gov, under the right navigation, Receive reports by Email, click on National orState. Follow the instructions on the screen.
For assistance with general agricultural statistics or further information about NASS or its products or services,contact the Agricultural Statistics Hotline at 800-727-9540, 7:30 a.m. to 4:00 p.m. ET, or e-mail:[email protected].
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis ofrace, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status,religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual’sincome is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons withdisabilities who require alternative means for communication of program information (Braille, large print, audiotape,etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).
To file a complaint of discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue,S.W., Washington, D.C. 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equalopportunity provider and employer.