August Farm Prices Take Sharp Drop

The USDA noted that increased sales of cattle, barley, and calves offset lower sales of wheat, corn, and soybeans.

Farm costs, measured by the prices paid index rose 1% month-over-month to 221, and that’s 5% higher than August of 2012. Higher prices for feeder cattle and LP gas, among other things, offset lower prices for nitrogen fertilizer, feed grains, and other fertilizers.

Prices received by farmers rose the most for commercial vegetables (up 13% from July) and fruits and nuts (up 1.6%). Oilseeds, cotton, feed grains and hay, and food grains were all lower month-over-month. Compared with August 2012, commercial vegetables prices are a whopping 30% higher than a year ago.

Meat prices are up 5.1% year-over-year, with hogs up about 13% and beef cattle up about 5.7%.