USDA price indices down in April
The USDA says the index of prices received by producers dropped sharply from March to April as the spread of COVID-19 impacted producers’ bottom lines.
The index was down 9% on the month, as a 4.2% gain in the crop index was cancelled out by a 20% decline in the livestock index. Prices were lower for cattle, corn, hogs, milk, broilers, and market eggs, and higher for turkeys, hay, rice, grapefruit, and oranges. Marketings were up for milk, strawberries, apples, and oranges, down for corn, cattle, soybeans, and hay.
The dairy index posted losses of 20% from March and 18.7% from April 2019. The April all milk price of $14.40 was down $3.60 on the month and $3.30 on the year.
The index of prices paid was 1.1% lower on decreased costs for feeder cattle, feeder pigs, diesel, and feed grains canceled out increases in complete feeds, concentrates, supplements, and LP gas.
Year to year, the index of prices received was down 9.4%, including a 22% loss for the livestock index, while the index of prices paid was 2.3% lower.