Farm Price Index - FPI
Categories: Index Funds, Metrics
The Farm Price Index, more commonly known as the Agriculture Price Index, is a monthly index of prices of farm-stuffs (think: crops and livestock) that’s reported by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS, like, “that’s naaaaaace produce”).
The Farm Price Index is one of many “economic indicators” that economists use to try to predict which direction the economy is headed. Since food is a thing we all have to buy at some point (unless you're the world's greatest moocher), the Farm Price Index is a pretty solid indicator for general economic price climbs and falls, and of inflation effects.
Other head-honcho indices (or indexes…up to you) include the Producer Price Index (domestic commodities markets) and the Consumer Price Index. The Farm Price Index is also a useful tool for helping farmers and the farming industry...kind of the USDA’s main job.