Farm Commodity Prices Take Big Jump
September 08, 2011
Source: CBC News
Prices for crops and livestock are up double digits this year, and farmers are hoping it's a signal of the end of a decade-long slump in prices.
The farm price index rose 16.3 per cent from June 2010 to June of this year, Statistics Canada reported Tuesday. Oil seeds led the way with a 39 per cent increase, and grain prices were not far behind.
"Farmers are making more money and we're happy to see that, and they deserve to make more money," said John Jamieson, executive director of the P.E.I. Federation of Agriculture.
"They've incurred a lot of debt over the 10 years that we've seen depressed farm prices."
Neil Campbell, sales manager at the P.E.I. Grain Elevator Corporation, credited much of the increase in prices that he's see to demand from China.
"We try to help the farmers and find markets for them," said Campbell.
"Hopefully at the end of the day they're getting a few more dollars in the bank to pay off loans that they have."
Prices for livestock and animal products were up 11.1 per cent overall. Cattle prices saw the biggest increase, up 16.5 per cent, with poultry up 15.4 per cent.
Statistics Canada attributed the increase in cattle prices to low inventories. In June the Canadian cattle herd was at its lowest level since 1994, and the American herd was at its lowest since 1973, when records began being kept.
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