Farm Product Price Index (FPPI)
Summary of changes
Activity on this program started: 1935
On June 5, 2013, with the release of the Farm Product Price Index (FPPI) for January, February and March 2013, Statistics Canada has updated the time base used in the calculation of the Index from 1997=100 to 2007=100. The seasonal marketing pattern was also updated.
The weights for the FPPI are primarily derived from Statistics Canada's Farm Cash Receipts series. The FPPI is based on a five-year basket that is updated every year, which keeps the index current, capturing the continual shift in agricultural commodities produced and sold. However, the seasonal weighting pattern remains constant and is only updated periodically, for instance when the time base is revised. This weighting pattern, which had been based on the monthly marketings from 1994 to 1998, is now based on the monthly marketings from 2006 to 2010. The new monthly weighting pattern was introduced beginning with the 2002 index.
There were slight changes to a few imputation rules, and commodities were adjusted to reflect their importance in the Farm Cash Receipts series. For example, in all provinces, horses, embryos and PMU were moved to be included in the miscellaneous livestock; whereas in Alberta and Saskatchewan, chickpeas are now calculated as a separate commodity.
As a result of rebasing, CANSIM tables 002-0021 and 002-0022 have been replaced by new tables 002-0068 and 002-0069. Furthermore, a new table, 002-0070 was created to provide the weights of the major commodity groups in the index, which had previously been available in the publication 21-007-X.
For each of the series contained in the CANSIM table, the historical series consist of all data for the months prior to January 1992. They were obtained by linking together indexes from the 2007 based FPPI and the corresponding 1997 based FPPI series.
Although the FPPI base year has changed to 2007=100 in the new CANSIM tables, the rates of change measured for periods prior to 2002 remain unchanged for both the 1997 =100 and the 2007 = 100 tables. Beginning in 2002, the rates of change for the indexes are impacted by the new seasonal, weighting pattern as well as changes to commodities being shifted from miscellaneous category to being calculated as a separate commodity and vice versa.
The Farm Product Price Index (FPPI) is released quarterly instead of monthly effective this reference period.
Data sources - The questionnaire entitled 'The Quebec Farm Product Prices Survey', a survey of farmers, was discontinued in March 2003. Similar price surveys in other provinces had been discontinued several years ago. As in the case of the Quebec Farm Product Prices Survey, they were replaced in most cases by administrative data sources which reduce respondent burden and are felt to provide better coverage. On a current basis, Quebec monthly prices are estimated using data published by the Fédération des producteurs de cultures commerciales du Québec (FPCCQ) or using related markets. The prices are then replaced by the final data published by the Financière agricole du Québec (FADQ) shortly after the end of the crop year.
The new Farm Product Price Index has been reformulated to capture the continual shift in agriculture commodities produced and sold. It also introduces the seasonal basket concept. The new index uses 1997 as the time base (1997=100) and covers more agriculture commodities.
This Farm Product Price Index replaces the old index, which was calculated until March 1996. The index was reconstructed back to January 1992 and is linked back to 1935.