Producers make a little less, pay a little more in July
U.S. farmers made fractionally less in July than June, while paying slightly more. That is due to a combination of factors, including commodity prices, seasonal shifts in marketings, inflation, and input costs.
The USDA says the index of prices received was 0.01% lower than last month as declines in corn, soybeans, wheat, and broilers canceled out rises for cattle, hogs, hay, and market eggs.
The dairy index was unchanged from June and 51% above July 2021, with an all milk price of $25.70 per hundredweight, $1.20 less than a month ago, but $7.90 more than a year ago.
The index of prices paid was 0.05% higher on increases for feeder cattle, hay and other forages, herbicides, and other services against decreases in feed grains, diesel, nitrogen, and mixed fertilizer.
Year-to-year, both indices are showing the effects of higher commodity prices, increased costs, and inflation, with prices received 16% above a year ago and prices paid up 13%.