Farm Input Price Index (FIPI)

Status:
Active
Frequency:
Quarterly
Record number:
2305

The Farm Input Price Index (FIPI) is a quarterly indicator of the change in the price of farm inputs faced by Canadian farmers.

Detailed information for second quarter 2014

Data release - October 7, 2014

Description

The Farm Input Price Index (FIPI) is an indicator of the change in input costs faced by Canadian farmers. As such, the FIPI can be used to monitor price changes, which are considered in the operations of marketing boards and in price stabilization programs. Governments use index data to develop national and regional economic policies related to the agriculture sector.

Data are available for 13 geographic areas: Each of the provinces, Eastern Canada (Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, and Ontario), Western Canada (Manitoba, Saskatchewan, Alberta, and British Columbia), and Canada that includes all ten provinces.

Reference period:
The time period for which the FIPI equals 100; currently this is the year 2002.

Subjects

  • Agriculture price indexes
  • Prices and price indexes

Data sources and methodology

Target population

The universe for the FIPI consists of all Canadian Census farms including family farms, partnerships, incorporated and institutional farms, full-time or part-time operations.

The FIPI is based on the average farm concept rather than the national farm or farm sector concept. Products sold within the farm sector, such as young animals, grain feed or seed are included in the FIPI, whereas they would be excluded in an input cost index based on the farm sector concept.

Data sources

Data are extracted from administrative files and derived from other Statistics Canada surveys and/or other sources.

The FIPI does not have its own specific questionnaires. Price data are extracted from other Statistics Canada programs or surveys (e.g. Industrial Product Price Index (2318), Consumers Price Index (2301), Labour Force Survey (3701), Machinery and Equipment Price Index (2312), Farm Product Price Index (5040)) and other administrative agricultural data sources.

Imputation

Imputation is generally carried out for missing data. In this situation, the last period's price is carried forward.

Because there are a number of inputs to this index that are available on different frequencies (e.g. annually) in a number of cases values may be carried forward until the input data becomes available. The index will then be updated when the missing data becomes available, which will generally be within the revision period of the index (the most recent two years of released FIPI data are subject to revision).

Estimation

Weights

The information used to weigh the major aggregate components of the FIPI is taken from CANSIM publication 002-0005, Farm Operating Expenses and Depreciation Charges, produced by the Agriculture Division of Statistics Canada. For weights at more detailed levels, estimates are based on additional statistical sources (internal and external).

Farm Operating Expenses and Depreciation Charges do not cover farm-to-farm transactions. To compensate for this gap, adjustments were made to the weights.

The reference period for weighting is a four-year average in 2002 constant dollars. A four-year period was used to moderate the influence of an exceptional year (unusual shock) on farm input purchases.

Prices

The FIPI measures the change through time in the prices of goods and services purchased by Canadian farmers for use in agricultural production.

Disclosure control

Statistics Canada is prohibited by law from releasing any information it collects which could identify any person, business, or organization, unless consent has been given by the respondent or as permitted by the Statistics Act. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.

Collected data will be converted to price indexes and data will be released as such, so that it will not be possible to identify the suppliers of the original raw data used to derive information on prices.

Revisions and seasonal adjustment

The data used in the FIPI's last eight quarters may be revised. Some FIPI inputs have their own revision periods, and the FIPI was structured so that data revisions can be incorporated. The FIPI is not seasonally adjusted.

Data accuracy

Because of the methodology used to calculate the FIPI, confidence intervals are not calculated. The use of administrative data results in a subjective evaluation of how representative the information is for the FIPI. Indexes for higher levels of aggregation are considered to be statistically reliable and are more reliable than the indexes at a low level of aggregation.

Documentation