The prices paid by farmers indices by sub-component shown in the graph below represents the average costs of inputs purchased by farmers and ranchers to produce agricultural commodities. Conceptually, the average price when multiplied by quantity purchased should equal total producer expenditures for the item.

 

The prices paid data are obtained from establishments that sell goods and services

to farmers and ranchers. Annually, about 8,500 firms are randomly selected from lists by type of item sold with an average response rate in the range of 75-80 percent. Firms are asked to report the price for the specified item "most commonly bought by farmers" or that was the "volume seller". The survey reference period for most items is the 5 business days centered around the 15th of the month. Separate prices paid surveys are conducted for, agricultural chemicals, fuels, feed, fertilizer, machinery, and seed.

 

The 2006 data shown in the graph represents the prices sampled in mid-February, with previous years shown as annual averages. Energy prices have increased from last month, with the February diesel fuel index at 253 versus a revised January index of 252, and the diesel fuel index is 33 percent higher than February 2005. The February nitrogen fertilizer index, at 221, is 25.6 percent above February a year ago but only up 0.5% from January. The February phosphate and potash fertilizer index is down 2.4% from January, but is 4.6 percent above February 2005.

 

 

Source: National Agricultural Statistics Service, Agricultural Statistics Board, U.S. Department of Agriculture. Agricultural Prices. Pr 1 (2-06). Web available at http://usda.mannlib.cornell.edu/ , report is normally released on the last business day of the month.