Farm Input Price Index (FIPI)
Detailed information for 2006
The Farm Input Price Index (FIPI) measures the annual price movement of specified farm inputs at the farm gate.
Data release - June 4, 2007
The Farm Input Price Index (FIPI) measures the annual price movement of specified farm inputs at the farm gate. 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. The index is also useful in transforming current dollar farm expenditures into constant dollar estimates through deflation. While data are collected at different levels (provincial and national), they are aggregated into three geographic areas: 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 1992.
Collection period: three times a year (January to March, April to June, October to December)
- Agriculture price indexes
- Prices and price indexes
Data sources and methodology
The universe for the FIPI consists of the distributors of all inputs (goods and services) going into the farming sector. This includes distributors of farm machinery, petroleum products, crop inputs (e.g. seeds and fertilizers), veterinary services, etc.
Commodity specialists mostly collect price data through the form of mail-out price reports, which contain technical descriptions or specifications for the selected products, originally supplied by the respondent. In addition to the commodity description, the report outlines the terms of sale for which the price applies. The price report was developed by Prices Division analysts in conjunction with the feedback received from respondents.
In the absence of a formal sampling frame of farm suppliers, various sources of information are used (such as telephone directories and association's lists) to identify and select respondents. This represents a non-probabilistic or judgmental approach to sampling.
Responding to this survey is voluntary.
Data are collected directly from survey respondents and extracted from administrative files.
Prices are collected at different points in the year, depending on when a given input is likely to see its prices change. Price information is collected by several means including direct mail survey, telephone interview, other sources within Statistics Canada, and from other agencies related to agriculture (e.g. Agriculture and Agri-Food Canada, Canadian Turkey Marketing Board). The questionnaires are customized with regards to what respondents sell.
View the Questionnaire(s) and reporting guide(s).
Verification of the information is carried out by commodity officers. Any incorrect or suspicious data is edited manually.
Imputation is generally carried out for missing data. In this situation, the last period's price value is carried forward.
The main source for the FIPI weights is the 1992 estimates of farm operating expenses and depreciation charges provided by Agriculture Division of Statistics Canada. These estimates correspond generally to the group level. To obtain detail below this level, other sources associated with estimates of production or distribution of the inputs are used.
The FIPI measures the change through time in the prices of goods and services purchased by Canadian farmers for use in agricultural production. These prices include the effect of applicable taxes, subsidies, any bonuses and premiums which can be attributed to specific commodities, but they exclude any storage, transportation, processing and handling charges. Those prices collected directly are actual transaction prices.
The quality of this index is maintained through the expertise of the few trained analysts assigned to it. They develop a thorough knowledge of the domain, which is supplemented by outside personal contacts for particular goods or services. Much time and effort is devoted to detecting and following up unusual fluctuations over time in the pricing patterns of goods and services. Prior to dissemination, the price indexes are analyzed and historic trends reviewed.
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 are converted to price indexes and data are released as such, so that it is not possible to identify the suppliers of raw prices.
The statistical accuracy of this index depends on price and expenditure data. Price data are obtained from a sample survey as well as administrative sources. Expenditure data come from surveys carried out by Agriculture Division. Both kinds of input data are subject therefore to their own errors. See the Data Accuracy section for record numbers 2301, 2323 and 3436.
In terms of price data, the use of non-probabilistic sampling and administrative data result in a subjective evaluation of how representative the information is, and confidence intervals are not estimated. Nevertheless, the response rate is considered adequate to provide information for East, West and Canada. As for the administrative sources (e.g. Agriculture and Agri-Food Canada reports), they represent generally accepted price movement indicators in the field. Indexes for higher and lower levels of aggregation are considered to be statistically reliable.
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