Farmers made less, paid more in August
The USDA’s index of prices received by farmers fell from July to August, while the index of prices paid was up fractionally.
That reflects the economic situation being faced by many producers this year, with declines in the prices received for their commodities being canceled out by rises in input costs.
The index of prices received was down 1.8% on decreases for milk, market eggs, broilers, and grapes, against increases for hogs, hay, lettuce, and strawberries.
The dairy index for August was down 5.5% from July, but up 38% from August 2021. The all milk price was reported at $24.30 per hundredweight, $1.40 lower than a month ago, but $6.70 higher than a year ago.
The index of prices paid was up 0.01% on price gains in feeder cattle, hay and forages, complete feeds, and concentrates, which canceled out losses in gasoline, diesel, nitrogen, and mixed fertilizer.
Year-to-year, the index of prices received is 20% higher, which is indicative of a better economic situation for parts of the industry, even with the month-to-month decline, while the index of prices paid was 12% above a year ago.