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A little less profitable on the farm in February

Farmers got a little less for their products in February. The Preliminary Index of Prices Received By Farmers show farm prices declined 4.3 percent from January. Producers received lower prices for milk, strawberries, celery and lettuce and higher prices for soybeans, corn, hogs and broilers. February farm prices were still 5.3 percent above those received in February of 2011.

The Crop Price Index decreased 3.8 percent from January. The average price of corn was $6.16 per bushel, up 9 cents; soybeans increased 40 cents to $12.30; all-wheat was a nickel higher at $7.09 per bushel and all-hay was $4 higher averaging $176 per ton. A 6.7 percent decline in vegetable prices and 0.6 percent decline in potatoes and dry beans pulled the index down.

The Livestock Price Index increased 0.6 percent from February. The average beef cattle price increased a dollar to $126 per hundredweight; hogs were $2 higher averaging $65.50 per cwt. Broilers were 3 cents higher at 52 cents per pound while turkeys slipped 1.8 cents to 63.9 per pound. Eggs were a little higher at 66.9 cents per dozen.

The Dairy Price Index fell 5.5 percent for the month; the all-milk price declined $1.10 to $17.90 per hundredweight. Florida has the highest all-milk price for February at $22 while California has the lowest, $15.80. The Wisconsin all-milk price will average $18.40; Illinois $18.20; Indiana $18.40; Iowa $18.20; Missouri $18.80; Minnesota $18.90; Ohio $19.10

Replacement dairy cow prices reflecting the lower milk prices, the average price received for milk cows in January was $1,460 compared to $1,480 last October. Michigan had the highest price at $1,600, Wisconsin was at $1,550, California averaged $1,400 and Missouri had the lowest price for dairy cows in January, $1,200.

The Index of Prices Paid By Farmers increased 0.5 percent from January reflecting higher prices for feeder cattle, feeder pigs, concentrates, nitrogen and mixed fertilizers, diesel and gasoline. We saw lower prices for feed supplements, potash and phosphate and LP gas.

Compared to February of last year, prices paid are 6.1 percent higher.

Read the full NASS report here: