Price Program - Methodology - 2011

1400 Independence Ave. S.W.
Washington D.C. 20250
(800) 727-9540
www.nass.usda.gov

2011

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Preface
NASS maintains a program of independent external review of its Agricultural Statistics Programs. In April 2008, USDA NASS
asked the Council on Food, Agriculture & Resource Economics (C-FARE) to assemble a panel of expert social scientists from academia,
government, and the private sector to conduct an
“independent, comprehensive, and objective review” of the Agricultural Prices Program. The
purpose of the review was to identify the
strengths and weaknesses of the program and to
recommend changes. One of the five key findings the C-Fare panel documented was that increased transparency is essential to all aspects of
the Agricultural Prices Program. It is important
that the purposes and conceptual basis for price
statistics be apparent to users. The following
documentation has been prepared to meet that
need.

Other reviews of the NASS program can
occur when requested. These include the Government Accounting Office (GAO) and the Office of Inspector General (OIG) program audits.
The authority for government audits if provided
through the following:


Departmental Regulation (DR) 1700-1
(2/9/89), Basic Office of Inspector General Investigation (OIG)/Audit Organization and Procedures



DR 1700-2 (6/17/97), OIG Organization
and Procedures

USDA, National Agricultural Statistics Service



DR 1720-1 (3/8/90), Audit Follow-up,
Management Decisions and Final Actions



Office of Management and Budget Circular NO. A-50, Audit Follow-up

The GAO and OIG audit reports are limited to “OFFICIAL USE” of departmental and
agency officials. Authority for making or approving additional releases of OIG reports is
reserved to the Assistant Inspector General,
Administration, and OIG. The Research, Education, and Economics Liaison Officer for audits
oversees requests made for OIG and GAO audit
reports on a “need to know” basis and coordinates any requests for audit reports by interested
parties.

These audits seek to document accountability and accuracy of Government statistics.
The NASS price data is key agricultural economic data required by law and is subject to
such audits. NASS price data is used in many
Government programs. The impacts can be substantial for both producers and the Government
when the data is incorrect. It is critical that the
NASS price program be a sound one. The NASS
Price Program has undergone several audits
through history. The last audit occurred in the
early 1980s for the prices received for grains
program. Cotton prices were reviewed by the
OIG in the 1990s.

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Chapter One. Overview of the NASS Price Program

IN THIS CHAPTER
Preface ........................................................ i
History of NASS .....................................1-2
Overview .................................................1-4

The purpose of the National Agricultural
Statistics Service (NASS) is the collection and
dissemination of timely, relevant, accurate, and
useful agricultural statistics. The structure of farming and the agricultural industry has changed dramatically over the 145 year history of agricultural
data collection. However, the NASS mission has
remained the same over time.

Scope .....................................................1-4
Data Sources .........................................1-4
Data Collection .....................................1-5
Price Indexes ............................................1-6
Calculation of the Price Indexes ...........1-6
Analytical Ratios Produced from the Data
16
Price Index Limitations .........................1-6
Forecast Uses ........................................1-7
Users of Price Statistics ...........................1-8
Producers...............................................1-8
Data Users .............................................1-8
Research ...................................................1-9
References .............................................. 1-10

Farmers, ranchers, producers and others
involved in agriculture require reliable information
on production, supplies, marketings, prices,
weather, and a vast array of other inputs. To meet
their needs, NASS maintains a network of 46 State
field offices, serving all 50 States and Puerto Rico
through cooperative agreements with State departments of agriculture and universities. The
State field offices regularly survey thousands of
farm and ranch operators, and agribusinesses who
voluntarily provide information on a confidential
basis. Statisticians consolidate the collected reports with field observations, objective yield
measurements, and other data to produce State
estimates. The State estimates are forwarded to
NASS headquarters in Washington, D.C. to establish and release national level data.

Appendix
A Prices Published by Month 1A-1 – 1A-4
B Schedule for Commodity Prices .....1B-1
C Selected International Agricultural
Price Programs ....................1C-1 – 1C-6

NASS issues nearly 500 national and
thousands of State reports each year. NASS reports cover virtually every facet of U.S. agriculture, including:
•
•
•
•
•
•

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Production and supplies of food and fiber
Prices received and paid by farmers
Farm labor and wages
Farm income and finances
Chemical use
Demographic data

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Several NASS reports contain agricultural price
data such as: Crop Values (February), Annual
Vegetables (January), Annual Non-Citrus Fruits
and Nuts (July), Meat Animals Production, Disposition, and Income (PDI) (April), Poultry Production and Value (April), Milk PDI (April), Potatoes
(September), Citrus Fruits (September), Peanut
Prices (Weekly), Dairy Products Prices (Weekly),
and Monthly Agricultural Prices. The content and
month published of Monthly Agricultural Price
reports are in Appendix A. Each report is released
on a fixed schedule according to an annual calendar of release dates. See http://www.nass.usda.
gov/Publications/catalog .pdf for the annual calendar. Strict security measures are followed to ensure that no one gains premature access to the data.

One set of particularly important data are
the price data because those provide a link between agricultural production and distribution.
Three distinct price series are presented in this
document, in the order in which they originated.
The series are: Prices Received (Chapter Two),
Prices Paid (Chapter Three), and Parity Program
(Chapter Four). This document provides users of
agricultural price data with extensive details of
NASS’s estimation program for prices that farmers
receive for commodities produced and the prices
paid for production goods and services. Federal
regulations require that NASS publish parity prices, indexes, and relevant price data monthly in
Agricultural Prices.

ing. Realization of the farmers' dependence upon
prices as guides for planning their production and
selling their products led by the Federal Government, after the Civil War, to supply such information. Price information was introduced as one
of a series of services provided to farmers as
means for encouraging production, especially for
export, to pay for debts acquired during the war.
Agricultural production also represented the best
alternative to obtain foreign exchange to aid industrial development.

In succeeding decades, additional agricultural price information was provided as a public
service to help guide farmers in expanding agricultural markets and to help them cope during periods
of adversity. The need for price information was
accentuated as farming spread and became more
commercialized. Efforts on the part of the Federal
Government to meet this need were stepped up
with the outbreak in Europe of World War I, and
received even greater impetus when the U.S. entered the conflict and acquired greater responsibility for supplying food and fiber.

History of NASS

The recession following World War I,
with its heavy impact upon agriculture through
curtailment of exports, placed still greater stress
upon price information for both current management and for future plans for agricultural output.
Agricultural reform and Government policies instituted during that period, calling for reliable
price guides, reached a pinnacle during the depression of the 1930s. The concept of parity prices
became a symbolic outcome.

Price data provide a link between agricultural production and distribution. In colonial days
agricultural leaders recognized this, especially as it
pertained to the tie between farming and market-

Government programs adopted
World War II, to encourage expansion in
to the contraction of farm production in
preceding decades, called for even more

1-2 

during
contrast
the two
detailed

USDA, National Agricultural Statistics Service 

price statistics. Additional data requirements were
also necessary because of the trend toward larger,
more specialized, and mechanized farms. Subsequent growth of vertically integrated agriculture,
requiring greater cohesion between farming operations’ and marketing agents’ supplying factors of
production, processing, and distribution services,
necessitated modifications in the means for acquiring and reporting price information without any
relaxation in the dependence placed upon it. The
price series have changed over the years, reflecting
the radical changes that have occurred in agriculture.

In their present form, the series represent
the current adaptation of federally supplied price
information to meet the needs of agriculture. In
view of the rapid technological, organizational,
and structural changes that are occurring, the adaptation is incomplete. Imperfections are clearly apparent and prospects for adequate adjustments are
unfavorable in the immediate future. Consequently, it is important that users of these price statistics
are aware of the scope and methods employed in
their construction so the information is used judiciously in analyzing the current market situation,
agricultural policy, and other issues facing the agricultural sector.

As technology and agriculture advances,
the market basket of goods and services needed to
measure price changes also requires updating.
These technological advances result in the index
being revised periodically to keep abreast of current agricultural practices. The last overall revision
and update to the indexes of prices paid and prices
received by farmers used in the computation of
parity prices occurred in 1995. Similar changes in
the prices paid and prices received indexes were
adopted with the 1995 revision to maintain consistency in the construction of the indexes and
their joint use in parity price computations.

USDA, National Agricultural Statistics Service

The universe for agricultural commodities
is all sales from producers to first buyers. Prices
for points of first sale are obtained either from
producers or first buyers. NASS collects price information from buyers rather than sellers as a single buyer can provide data from many transactions. Buyers also are more likely to be active
market participants on a continuing basis. Individual producers normally market commodities only a
few times during the year.

NASS does conduct some surveys directly
through producers. Surveys of growers, packers,
and processors for the end-of-season estimates for
fruits, nuts, and vegetables are conducted annually. The survey data are used to calculate market
year average (MYA) prices. NASS also conducts a
hay sales survey every other year in all monthly
program States. Some States conduct the survey
during even number crop years only and other
States conduct the survey during odd number crop
years. The biennial hay survey data are used for
setting monthly revisions and final MYA prices.

State field offices maintain universe lists
of operations which purchase grain, oilseeds, rice,
peanuts, dry beans, pulse crops, or cotton directly
from producers in addition to establishments that
sell production inputs. Each operation on the list
must be appropriately classified for samples to be
properly drawn and to allow for correct expansion
of data to provide representative price indications
for setting State and national estimates.

The relationship of the NASS’ price program to agribusinesses, producers, and data users
is discussed for each these areas. Each area provides useful and needed information for assembling statistically reliable prices and indexes to
serve the agricultural industry.

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during a year. For similar reasons, NASS generally obtains prices paid from sellers.

Overview of Scope, Data Sources
and Data Collection
NASS collects prices received and prices
paid from producers to calculate indexes from
those prices. It also uses the data that are collected
to determine parity prices and parity indexes.
Chapters Two and Three provide the methodology
for the collection of the prices paid and prices received data. Chapter Four provides details about
the parity program. Following is a short overview
of the scope, data sources and collection methods
that are used to collect the price information. More
detail on these topics will be provided in the chapters that follow.

Scope
Prices Received statistics cover relevant
statistical data for principal crops, livestock, livestock products, indexes of prices received, and
parity prices. Prices paid statistics cover pertinent
statistical data for indexes of input components,
livestock and poultry feed price ratios, and production input items prices. For prices received, the
universe for agricultural commodities is all sales
from producers to first buyers. The universe for
prices paid is agribusinesses.

Data Sources
Prices for points of first sale are obtained
either from producers or first buyers. For prices
received, NASS collects price information usually
from buyers rather than sellers because a single
buyer can generally report on many transactions.
Buyers also are more likely to be active market
participants on a continuing basis. Individual producers normally market commodities few times

1-4 

To collect information from buyers, it is
necessary to have a list of the potential buyers of
farm products. State field offices take responsibility for updating and maintaining the list of operations that purchase grain, oilseeds, rice, peanuts,
dry beans, pulse crops or cotton directly from
farmers in addition to the establishments that sell
to farmers. Each operation on the list must be appropriately classified for samples to be properly
drawn and to allow for correct expansion of data
to provide representative price indications for setting State and national estimates. The classification of sampling units in a population is by homogeneous groups. The NASS prices sampling frame
is classified based on operation control data, such
as grain storage capacity, commodities produced,
and items sold or purchased.

Grain elevators, both private and cooperative, are agribusinesses buying commodities directly from farmers and ranchers. These facilities
have equipment for the handling and storage of
grains, dried beans, and other seed crops. Ethanol
plants or facilities constructed to produce ethanol
by converting crops such as corn, sugarcane, or
wood into alcohol sugar purchase directly from
producers. An ethanol plant can range in size from
a backyard operation to a large factory. Terminal
markets are establishments in a city or market
where large quantities of production are brought
for sale and distribution.

Additional price data are obtained from
dealers or cooperatives. A dealer is a person or
firm buying commodities for speculative purposes.
The commodities are for immediate resale and are
usually held for only a short time. Dealers take

USDA, National Agricultural Statistics Service 

title to the commodity. Cooperatives are voluntarily organized associations which are controlled by
its members or patrons that pool their resources
and share in the profits. Dealers and cooperatives
provide price data for fruits, vegetables, milk, cotton, grains, retail seeds, machinery, fertilizer,
chemicals, and feed.

that producers receive. An auction pool is a cooperative method of marketing where individually
owned products are pooled and sold to the highest
bidder.

Administrative data are also used in setting mid-month prices rather than relying solely on
mid-month data directly from buyers and sellers.
The data are used for setting national price estimates for fruits, vegetables, livestock, poultry, and
feeder livestock. See Chapter Two for information
about the administrative data used in the Prices
Received program. Prices paid items such as autos, trucks, building materials, supplies, repairs,
fuel, and services also use administrative data to
measure price changes. See Chapter Three for information about the administrative data used in the
Prices Paid program.

Prices Received Surveys are primarily self
administered surveys (mail, fax, and electronic
data reporting). Phone enumeration is used when
necessary to ensure adequate coverage and a good
response rate. Field enumeration is used for certain
phases and when a respondent requests a personal
visit.

Administrative sources provide adequate
price coverage when resources limit data collection. Administrative sources utilized include
commodity associations, market orders, and government (State and Federal) agencies. The administrative data are documented and approved according to agency policy to meet the needs of the
price program.

Other coverage sources for collecting
price data include producers and manufacturers of
input items needed to produce agricultural food
and fiber, agricultural services, such as fertilizer
and farm equipment manufacturers and dealers,
wholesalers, processors, transporters, marketers,
and retail outlets. Auction houses or auction pools
where commodities are sold through competitive
bidding to the highest bidder also provide prices

USDA, National Agricultural Statistics Service

Data Collection

Prices received for products sold by producers are collected with voluntary cooperation of
buyers and sellers. Buyers can provide information
covering transactions of many sellers and is the
preferred contact for collecting prices received
data.

Prices Paid Surveys are primarily telephone enumerated surveys. Farm input prices paid
are collected annually through a survey of establishments selling production input items to producers. Monthly data sources are administrative.

Administrative data are also used to set
mid-month prices rather than using mid-month
data directly from buyers and sellers. The data are
used for setting national price estimates for fruit,
vegetables, livestock, poultry, feeder livestock,
and fuel. Several prices paid items incorporate
administrative data. See the Prices Paid, Chapter
Three, for more details. Administrative sources
provide adequate price coverage when resources
limit data collection. Administrative sources in-

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clude commodity associations, market orders, and
government (State and Federal) agencies. The administrative data are documented and approved to
meet the price program needs according to agency
policy.

The formula for the prices received index
is a modified Rothwell formula. The formula used
to calculate prices paid indexes is a modified
Young index. Details about the formulas are in
Chapters Two and Three, respectively.

Price Indexes
Calculation of the Price Indexes

The Prices Received Index aggregates the
individual prices received together into one measure. The Prices Paid Index aggregates the individual prices paid together into one measure. A price
index is a tool that simplifies the measure of
movements in a numerical series.

Prices received and prices paid by farms
indexes currently have a 1990-1992 reference
base. NASS sets the average index level (representing the average price level) for the 36-month
period covering the years 1990, 1991, and 1992
equal to 100. For example, an index of 105 means
there was a 5 percent increase in price since the
reference period; similarly, an index of 95 means
there was a 5 percent decrease. Movements of the
index from one month to another can be expressed
as changes in index points, but the percent changes
of an index will be more useful to express the
movements of the price level. This is because index points are affected by the level of the index in
relation to its base period, while percent changes
are not.

The indexes of prices received and prices
paid are based on five-year average weights. Index
weights are updated every year to capture the continual shift in agricultural commodities sold and
agricultural inputs bought. The annual weight base

1-6 

is derived from farm’s cash receipts and expenditures series. The years used to construct weights
are the latest five years of data available from cash
receipts and farm expenditures.

Analytical Ratios Produced from the Data

Several analytical ratios are calculated
from the agricultural price indexes. A ratio
measures the relationship of one price (or price
index) to another price (or price index). For example, the ratio of prices received to prices paid by
producers is a measure of the prices received index
relative to the 1990-1992 = 100 base reference
period. A ratio of 80 means the level of prices received by producers is 20 percent lower than the
level of prices paid by farms in comparison to the
1990-1992 ratio.

Price Index Limitations

Factors such as changes in quality, utilization, and movement of old and new crops affect
month to month price changes. Shifting areas of
marketing, world markets, trade policies, and
changing market functions performed by the producer affect longer term price analysis. New varieties or breeds, specialized uses of products, and
changing market arrangements are all reflected in
the average prices received by farmers. Analysts
should keep these factors in perspective when analyzing the data series on prices received by farm-

USDA, National Agricultural Statistics Service 

ers. Analysts should also understand that the comparison between month to month price changes
based on the prices received indexes may not represent the same market basket. The market baskets
may differ each month of the year with seasonal
crop development changes. A more consistent
comparison of the price received indexes is the
relationship for the same month across different
years.

Price data based on statistical surveys are
subject to sampling and nonsampling errors. Sampling errors are defined as differences between the
population estimates from different samples and
the population value. They measure the probability
of an estimate's departure from the values obtained
with a complete enumeration. Sampling errors can
be measured statistically based on probability
samples. For major commodities, standard errors
for NASS price estimates at the U.S. level are
generally in the one to two percent range. Efforts
are made to control the level of sampling errors by
list stratification and increased sample size as resources and respondent burden permit.

Nonsampling errors include nonresponse
errors introduced when survey respondents refuse
to cooperate or cannot be located during the survey period; errors introduced by an interviewer's
"leading" the respondent or otherwise influencing
the respondent's answer; and errors resulting from
incorrectly recording or transferring data, whether
done manually or with data processing equipment.
Errors may also arise from the questionnaire when
questions are unclear, definitions are imprecise, or
the order of questions is not logical. Nonsampling
errors are minimized through standardized questionnaires, instruction manuals, training, manual
review of reported data, and automated edit checks
during summarization.

USDA, National Agricultural Statistics Service

The prices paid index does not adjust for
changes in item quality or other product enhancements. The quality and enhancements of input
products can change significantly over time. With
farm machinery, for example, the basic functions
have not changed, but current models are much
different from those 30 or 40 years ago. Prices for
items producers sell used in the received index
represent all grades, qualities, and classes. No
modifications are made to these prices.

Forecast Uses

NASS has maintained the historical price
index series, 1910-1914=100, as prescribed by
permanent legislation. These indexes have been
linked to the current base period of 19901992=100 which maintains the usefulness of the
NASS price indexes for forecasting. Economists,
analysts, and researchers often times require a
consistent long time price index series for forecasting and modeling. Almost all series, except the
Rent index are available from 1975 to current for
the base period of 1990-1992=100. Most major
indexes series can be traced back to 1910 for the
base reference period 1910-1914=100. Price index
data from 1997 to current for both base periods are
available from NASS’s online Quick Stats data
base. Data prior to1997 which are not currently
available from the online data base are available
on request.

1-7

input production costs. Analysts use the statistics
to project current trends, interpret their economic
implications, and evaluate courses of action to aid
in making farm management decisions.

Users of the Price Statistics
Price Program Relationship to the
Producers
Commodity prices are essential economic
statistics for farm operators. Producers use price
data when making decisions on purchases, sales,
capital investments, and annual production contract agreements. Agricultural price data provide
reliable information to keep farmers on equal footing with agribusinesses, bankers, credit associations, and policy makers. Price data are the link
between production and distribution.

In addition, price data are used to formulate government policy which governs any subsidy
payments a farm receives. Current government
price support programs and Federal marketing orders use NASS price data in setting market standards and level of program payments. Prices Received for grains, oilseeds, rice, peanuts, and cotton data are used to establish payments to producers for those commodities.

In today’s ever changing environment,
producers must constantly keep abreast of prices.
The data assist farmers and managers in determining the best time to buy seed, fertilizer, chemicals,
and other farm inputs as well as assisting in marketing decisions. Price data also helps producers to
determine when and if they should expanded or
scale back their operation.

Farmers, government agencies, and policymakers use prices paid data to evaluate the costs
of inputs used in agriculture compared to other
sectors of the economy. Economists and farm operators alike use these data to adjust agricultural
productivity, to analyze net gains or losses from
agricultural production, and to measure alternative

1-8 

Reliable reports on agricultural prices are
an invaluable aid to financial institutions in serving agricultural credit needs. Available credit can
be used more effectively if lending institutions can
monitor trends in the agricultural sector. Banks,
the Farm Credit Service, and other lending institutions use prices paid data as they determine loan
requirements and develop production budgets for
agricultural producers seeking credit.

Firms and individuals actively involved in
the production, distribution, processing, and marketing of farm products use prices paid data to determine market potential and allocation of research
and advertising funds. The location of a new dealership or the potential of a new product is contingent upon an evaluation of future income. NASS
price data provide the only unbiased source of agricultural input prices to serve the Nation’s needs.

Price Program Relationship to Data Users

NASS is part of the Federal Statistical
System of the U.S. government. NASS data have a
variety of uses. Forecasts of expected production
of crops and livestock enable commodity markets
to operate efficiently as price discovery mechanisms. End-of-year price estimates establish commodity values used to measure the farm economy
and its economic impact.

The U.S. Government is a major consumer
of NASS price program data. USDA Economic

USDA, National Agricultural Statistics Service 

Research Service (ERS) uses price data in estimating and forecasting farm income. The farm income
data are then used by the Bureau of Economic
Analysis (BEA) to measure the size and change in
the size of the U.S. economy.

Other USDA agencies use NASS price
program data to administer market orders, distribute income loss payments, and gauge the health of
the farm economy. The monthly publication containing the price data of the NASS Price Program
is entitled Agricultural Prices. The report is part of
the Principal Federal Economic Indicators as designated by the Office of Management and Budget.

Organizations outside the U.S. are users of
the NASS Price Program data. The Food and Agriculture Organization (FAO) of the United Nations uses the data to provide comparative analysis
among countries. The Agricultural Division of
Statistics Canada referenced the methodology of
the NASS Price Program in redesign of their price
index.

Private sector firms and individual farmers
and ranchers are also users of the data. Commodity production contracts are written that use price
program data to establish prices each growing season. Farmers and ranchers use the data to help
with their commodity marketing decisions. Researchers use the data to study farm cost trends,
farm income trends, and dozens of other macro
and micro agricultural issues. The banking and
finance services industry, which is critical to U.S.
agriculture, also uses price data in their business
forecasts. Literally, every business that is involved
directly or indirectly with U.S. agriculture reviews
agricultural price data in planning their own business needs as well as the products and services
they provide.

USDA, National Agricultural Statistics Service

Research

NASS is committed to improving the price
program, recognizing the importance of the price
program and the need for continuous improvement
to keep pace with the rapidly changing agricultural
sector. The research component of the price program strives to identify its strengths and weaknesses and to recommend changes to make the
published statistics more accurate and useful.

The research plan incorporated areas recognized in the Council on Food, Agricultural, and
Resource Economics (C-FARE) report (C-FARE,
2009). Potential survey methodology areas for research are use of administrative data, sample and
questionnaire design, edit and imputation, and estimation procedures. Future research projects include investigating economic issues such as indexes, weights, seasonality, and quality adjustments.
To further develop the research agenda, the price
program research team investigated the research
areas by feasibility, budget, importance to the
price program, and resources available. NASS
continuously seeks expertise from other resources
outside of NASS such as a cooperative agreement
with the National Institute of Statistical Sciences
(NISS). Information about NISS can be found at
http://www.niss.org/. The collaboration between
the outside sources along with NASS resources
seeks to pool expertise to carry out the price program research agenda.

1-9

References
Allen, Rich. (2008). Agriculture Counts: The
founding and evolution of the National
Agricultural Statistics Service 1957-2007.
from
http://www.nass.usda.gov/About_
NASS/agriculture_ counts.pdf

Eurostat. (2007, October). SIGMA – The bulletin
of European Statistics: Getting the price
right. from http://epp.eurostat.ec.europa.eu
/portal/page/portal/product_details/publica
tion?p_product_code=KS-BU-07-002

Australian Bureau of Agricultural and Resource
Economics and Sciences. (2010, December). Australian national accounts: National income, expenditure and product.
from http://www.ausstats.abs.gov.au/ ausstats/meisubs.nsf/0/FBA7A6B1F4288FAF
CA2577EB000EEFA2/$File/52060_sep%
202010.pdf

Eurostat. (2002, February). Handbook for EU Agricultural Price Statistics. from http:
//epp.eurostat.ec.europa.eu/cache/ITY_OF
FPUB/KS-BH-02-003/EN/KS-BH-02003-EN.PDF

Baldwin, A. (2001). The redesign of the Canadian
farm product price index. Catalogue No. 21-601-MIE No. 72 Statistics
Canada
from
http://www.statcan.
gc.ca/pub/21-601-m/21-601-m2004072eng.pdf
Council on Food, Agricultural, and Resource Economics (C-FARE). (2009, June). A review
of the USDA-NASS agricultural prices
program: Challenges and opportunities for
the 21st century. Washington, D.C. from
http://www.cfare.org/reviews/CFARE_N
ASS_FULL_BOOK_email.pdf

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Garneau, G. (2010). The farm input price index
(FIPI).from http://www.statcan.gc.ca/cgibin/imdb/p2SV.pl?Function=getSurvey&S
DDS=2305&lang=en&db=imdb&adm=8
&dis=2
USDA Statistical Reporting Service National Agricultural Library Digital Repository.
(1969). The story of U.S. agricultural estimates. Volume 1088, 1–144. from
http://naldr.nal.usda.gov/NALWeb/Agrico
la_Link.asp?Accession=CAT87208003

USDA National Agricultural Statistical Service.
(2005, July). Early history of agricultural
statistics. 3-13. from http://www.nass
.usda.gov/About_NASS/evolving_nass.pd
f

USDA, National Agricultural Statistics Service 

Appendix A: Commodity Prices Published by Month
Calendar of Prices Received Features in the 2010 Agricultural Price Reports
Annual or Marketing Year Average Prices
Month Published
Austrian Winter Peas, United States .......................................................................... September
Barley, United States ................................................................................................. June
by State and United States .................................................................................. August
Broilers, by State and United States........................................................................... April
Canola, by State and United States ............................................................................ November
Cattle, by State and United States ............................................................................ February
Chickens, Other by State and United States .............................................................. April
Chickpeas, by State and United States ....................................................................... November
Corn, United States .................................................................................................... September
by State and United State .................................................................................. November
Cotton, by Type, State and United States .................................................................. October
Cottonseed, by State and United States .................................................................... October
Dry Beans, by State and United States ...................................................................... November
Dry Edible Peas, United States .................................................................................. September
Eggs, by State and United States .............................................................................. April
Flaxseed, by State and United States ......................................................................... November
Goats, by State and United States .............................................................................. February
Hay, by State and United States ................................................................................. August
Other Hay, 3-year Average by Region ............................................................... February
Hogs, by State and United States ............................................................................... February
Hops, by State and United States ............................................................................... December
Lentils, United States
.................................................................................. September
Milk, Sold to Plants, by Grade, Price and Fat Test, b State and United States .......... April
Mohair, by State and United States ............................................................................ February
Mustard Seed, United States ...................................................................................... November
Oats, United States ..................................................................................................... June
by State and United States ................................................................................... August
Peanuts, by State and United States ........................................................................... August
Potatoes, by State and U.S., Preliminary .................................................................. February
Proso Millet, by State and United States.................................................................... November
Rapeseed, United States ............................................................................................. November
Rice, United States (year-to-date) ............................................................................. August
by State and United States, by Length of Grain ................................................. January
Safflower, United States ........................................................................................... November
Sheep and Lambs, by State and United States ........................................................... February
Sorghum, by State and United States ......................................................................... September
Soybeans, by State and United States ........................................................................ September
Sweetpotatoes, by State and United States, Preliminary .......................................... January
Final and Revised ............................................................................................... June
Sugarbeets, United States........................................................................................... July
Sugarcane, United States ........................................................................................... July
Sunflower, by State and United States ....................................................................... November
Turkeys, by State and United States .......................................................................... April
Wheat, by Class, United States
............................................................................ June
by State and United States .................................................................................. August
Wool, by State and United States............................................................................... February

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Calendar of Prices Received Features in the 2010 Agricultural Price Reports
Monthly Prices Received - Revised
Month Published
Austrian Winter Peas, United States ......................................................................... September
Barley, by State and United States ............................................................................. August
Broilers, United States ............................................................................................. April
Cattle, by State and United States .............................................................................. February
Chickens, by State and United States......................................................................... April
Chickpeas, by State and United States ....................................................................... November
Corn, by State and United States ............................................................................... November
Cotton, by Type, State and United States .................................................................. October
Cottonseed, by State and United States ..................................................................... October
Dry Beans, by State and United States ...................................................................... November
Dry Edible Peas, United States ................................................................................. September
Eggs, by State and United States ............................................................................... April
Flaxseed, by State and United States ......................................................................... November
Hay, by State and United States ................................................................................. August
Hogs, by State and United States ............................................................................... February
Hops, by State and United States ............................................................................... December
Lentils, United States ................................................................................................. September
Milk, Sold to Plants, by Grade, Price and Fat Test by State and United States ......... April
Milk Cows, by Quarter, by State and United States .................................................. February
Oats, by State and United States ................................................................................ August
Peanuts, by State and United States ........................................................................... August
Potatoes, by State and United States, Preliminary .................................................... February
Rice, United States (year-to-date) ............................................................................. August
by State and United States, by Length of Grain ................................................ January
Sheep and Lambs, by State and United States ........................................................... February
Sorghum, by State and United States ......................................................................... September
Soybeans, by State and United States ........................................................................ September
Sunflower, by State and United States ....................................................................... November
Wheat, by State and United States ............................................................................. August

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USDA, National Agricultural Statistics Service

Calendar of Prices Received Features in the 2010 Agricultural Price Reports
Monthly Marketing Percents
Month(s) Published
Austrian Winter Peas, United States .......................................................................... September
Barley, United States ................................................................................................. June
by State and United States .................................................................................. August
Chickpeas, by State and United States ....................................................................... November
Corn, United States .................................................................................................... September
by State and United States .................................................................................. November
Cotton, Upland, by State and United States ............................................................... October
Dry Beans, by State and United States ...................................................................... November
Dry Edible Peas, United States .................................................................................. September
Flaxseed, by State and United States ......................................................................... November
Hay, by State and United States ................................................................................. August
Lentils, United States ................................................................................................. September
Oats, United States ..................................................................................................... June
by State and United States .................................................................................. August
Peanuts, by State and United States ........................................................................... August
Rice, United States (year-to-date) ............................................................................. August
Final .................................................................................................................... January
Sorghum, by State and United States ......................................................................... September
Soybeans, by State and United States ........................................................................ September
Sunflower, by State and United States ....................................................................... November
Wheat, United States .................................................................................................. June
by State and United States .................................................................................. August
Prices Received Index Numbers - Revised
Index of Prices Received by Farmers, United States, by Month and Year ............... Jan, Apr, Jul, Oct
Milk and Egg Prices Received, Adjusted for Seasonal Variation
Seasonally Adjusted Prices, Revised, United States .................................................. April
Seasonal Adjustment Factors, United States, program change .................................. July
Parity Prices
Method of Computing ............................................................................................... January
Average Prices Used for Parity Computations .......................................................... January
Manufacturing Milk: Method of Computing Parity Price Equivalent ..................... January
Average Price Received, United States...................................................................... January

Indexes (1910-1914=100)
PPITW, PITW, Production Items, Component Items, Interest, Taxes and
Wage Rates, Family Living, Farm and Non-Farm Origin, Crop and
Livestock Sectors, Adjusted for Productivity, Ratio, Parity Ratio
and Adjusted Parity Ratio
Annual Average (2006-2010) ............................................................................... Jan, Apr, Jul, Oct
By Month (2006-2010) ......................................................................................... Jan, Apr, Jul, Oct
United States Current Month, Previous Month, Previous Year ............................ Monthly

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Calendar of Prices Received Features in the 2010 Agricultural Price Reports
Indexes (1990-1992=100)
Month(s) Published
PPITW, PITW, Production Items, Component and Subcomponent Items,
Interest, Taxes and Wage Rates, Family Living Farm and
Non-Farm Origin, Crop and Livestock Sectors, Adjusted for
Productivity, Ratio, Parity Ratio and Adjusted Parity Ratio
Annual Average (2006-2010) ............................................................................... Jan, Apr, Jul, Oct
By Month (2006-2010) ......................................................................................... Jan, Apr, Jul, Oct
United States Current Month, Previous Month, Previous Year ............................ Monthly
Feed and Feeder Livestock & Poultry Annual Average,
United States (2005-2010) .................................................................................. December
Prices Paid
Farm Machinery, United States ................................................................................ April
Feed, by Region and United States ........................................................................... April
Feed, United States (2005-2010) .............................................................................. December
Feeder Livestock, United States ................................................................................ Monthly
Poultry, Chicks and Poults, Annual Average ............................................................ April
Fertilizer Materials, Mixed Fertilizer and Agricultural
Limestone, by Region and United States ................................................................ April
Field Seeds, Retail United States .............................................................................. April
Fuels, by Region and United States .......................................................................... April
Agricultural Chemicals, United States ...................................................................... April
Feed-Price Ratios
United States by Months and Annual Average, (Jan 2007- May 2010) ................... May
United States Current Month, Previous Month, Previous Year ................................ Monthly
Prices Paid Program Overview
Prices Paid Survey Months, Month Published and
Geographic Levels of Estimates .............................................................................. January
Prices Paid Regions, and States Included ................................................................. April
Private Non-Irrigated Grazing Fee Rates, by State and Region
(Data for 2008-2010) ............................................................................................ January
Prices Paid Index for Beef Cattle Production (1964-68=100) .................................. December
Beef Cattle Prices Received, Selected Regions (November-October) ...................... December
Other Hay Prices Received, Selected Eastern Regions ............................................. February

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USDA, National Agricultural Statistics Service

Appendix B: Monthly Schedule for Commodity Prices
The National Agricultural Statistics Services (NASS) publishes current month, previous month, and
previous year prices in the monthly Agricultural Prices release. In addition, index revisions, monthly
price revisions, marketing year average prices, monthly marketing percentages, and other related information for many commodities are published as soon as possible after the end of the marketing year.
The following schedule shows the month in which these additional data are featured.

January

May

September

Rice, Noncitrus Fruit,
Sweetpotatoes, Vegetables,
Parity Prices, Grazing Fees,
and Index Revisions

Tobacco and
Feed Price Ratios

Citrus, Potatoes, Soybeans, Sorghum, Dry Edible Peas, Lentils, Austrian
Winter Peas, and
US MYA Corn

February

June

October

Other Hay, Meat Animals,
Potatoes, Noncitrus Fruit,
and Crop Values*

US MYA Wheat, US
MYA Barley, US MYA
Oats, Sweet potatoes

Cotton, Cottonseed, and
Index Revisions

March

July

November

None

Noncitrus Fruit, Onions,
Cranberries, Sugarbeets,
Sugarcane, Seasonal Adjustment Factors, and Index Revisions

Corn, Sunflower,
All Dry Beans, Chickpeas,
and Flaxseed

April

August

December

Poultry, Milk,
Farm Machinery, Feed,
Feeder Livestock, Fertilizer, Field Seeds, Fuels, Ag
Chemicals, Seasonally Adjusted Prices, and Index
Revisions

Wheat, Oats, Barley, Rye,
Peanuts, Hay, and
US MYA Rice
(year-to-date)

Prices Paid Index for Beef
Cattle Production, Hops,
and Public Lands Grazing
Fees

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Appendix C: Selected International Agricultural Price Programs
Other countries with long robust histories of agricultural prices and indexes are Australia, Canada, and the European Union. How
does the NASS price program compare to the
programs of these other countries? The following briefly highlights differences without going
into any detailed analysis. Information about
each country’s agricultural price program is provided for quick reference.

International Agricultural Price Program
Comparisons

Canada has a centralized statistical
agency, Statistics Canada, with emphasis on
compatibility of all economic statistics programs. Statistics Canada’s philosophy is to keep
the Farm Product Price Index (FPPI) series
comparable with other published price indexes.
The statistical programs between Canada and the
U.S. differ in this respect for agricultural price
indexes.

A guide to the redesign of the Statistics
Canada Farm Product Price Index (FPPI) was
the 1995 reconstruction of the U.S. Prices Received Index. Improvements in the U.S. index
followed in the Statistics Canada redesign were:






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Seasonal weighting pattern for the 12
months of the year for all commodities,
Update of the index basket every year
based on marketings for the last five
years prior to the previous year, and
Increase in commodity coverage for the
index.

The FPPI is a chain index with a new
annual basket linked into the index every year.
The link is at the previous year and month and
not the previous month. The NASS index has a
new annual basket every year without linking.
This means the index is not a true measure of
only price change.

The weights for the FPPI are an average
of five-year cash receipts at base year prices.
The weighting pattern of the FPPI reflects the
pattern of marketings of the five different years
but the price structure only of the base year.
Weights for aggregating the NASS indexes are a
five-year average of cash receipts using the
equivalent price for each year. The weighting
pattern of the NASS index reflects the pattern of
marketing as well as the price structure of the
five different years.

Annual FPPI indexes are calculated as
weighted averages of monthly FPPIs, consistent
with the monthly basket concept of the index.
NASS annual indexes are calculated as simple
means of the monthly indexes. Federal regulations relating to the calculation of parity prices
require NASS to calculate its annual indexes as
a simple average of the monthly indexes. This
approach, however, is inconsistent with the
monthly basket approach to calculating the
monthly index series and may not adequately
represent each month’s index in the annual average.

The FPPI includes commodities for
which there are farm cash receipts but no marketings in the index basket and allows respective

USDA, National Agricultural Statistics Service

influence to the relative importance of the category grouping. The NASS index only includes
those commodities with monthly cash receipts in
the index group.

The Australian and European Union
price programs also share many commonalities
with the NASS price program. Some differences
exist in index groupings, items in market basket,
level of index computation published, and methodology of index computation. These indexes
are based on aggregation of price relatives rather
than aggregation of change in average prices
received or paid. Australia publishes commodity
level indexes.

The Australian Bureau of Agricultural
and Resource Economics (ABARE) revised the
method for calculating agricultural price indexes
in October 1999. The indexes for commodity
groups are now calculated on a chained weight
basis using Fishers’ ideal index with a reference
year of 1997-1998 = 100. The indexes for most
commodities are based on annual gross unit value of production. Chain weighted indexes account for product shifting as consumer needs
change.

The European Union (EU) agricultural
policy was designed to meet two objectives. The
first was to guarantee the lowest possible food
prices to the consumer in the European Union.
The second was to secure farmers’ incomes with
guaranteed prices, which required harmonized
statistics on agricultural prices. Eurostat therefore collects data on agricultural prices, which
began in the 1960s, to analyze price developments and their effect on agricultural income.

tained by a base-weighted Laspeyres calculation
(2000=100), and are expressed both in nominal
terms, and deflated using an implicit harmonized
index of consumer prices (HICP) deflator.
Methodology for the price program is based on
the Handbook for EU agricultural price statistics.

The NASS price program, unlike these
other countries, must compute and publish parity
prices for most major agricultural program
commodities as governed by permanent legislation. Parity prices, as prescribed in legislation,
are calculated utilizing commodity prices and
both the prices received and paid indexes. The
construction of the indexes to meet this legislative requirement is a responsibility of NASS.
The NASS price program utilizes price data to
meet the needs of not only producing indexes to
compute required commodity parity prices but to
provide a means of deriving total value of commodities produced. These values are important
to measuring agriculture’s contribution to the
Gross Domestic Product for the U.S. and other
countries.

The statistical programs for other countries publish only one index series referenced to
one base period. The EU indexes are expressed
both in nominal and deflated terms. NASS, on
the other hand, publishes two series. One based
on the 1910-1914 base reference period, as prescribed by legislation, and a more recent reference period of (1990-1992 = 100.)

Additional information of these country’s price programs follows.

EU agricultural price indexes are ob-

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1C-2

Australia

Market prices and marketing costs are
collected through two separate annual Australian
Bureau of Statistics (ABS) surveys. Market prices are used in combination with the quantities
collected from the agriculture census / survey to
calculate gross value where gross value represents the value placed on commodities at the
point of sale (i.e. in the market place). These
prices are inclusive of any product taxes paid
and any product subsidies received which is a
different valuation basis compared with farm
gate prices. The ABS also collects economic and
financial data on agriculture and services to agriculture through its annual economic activity
survey. For more information about the Australian Bureau of Statistics, go to http://abs.gov.au/.

In addition to these annual collections,
the ABS runs a quarterly livestock products survey which collects current price and quantity
information on livestock slaughter, meat production, exports of live sheep and live cattle, exports of fresh, chilled, frozen and processed
meat, and whole milk intake by factories, market
milk sales by factories, and orders of wool by
wool brokers and dealers.

Australia presents its annual estimates
on a fiscal year (July-June) basis and not on a
calendar year basis. A large amount of agriculture data on annual farm production, annual
farm costs, and annual farm prices is published
by the Australian Bureau of Agricultural and
Resource Economics (ABARE). The ABARE
data include forecasts for the latest year and, in
some cases, forecasts are available five years out
from the latest year.

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ABARE revised the method for calculating agricultural price indexes in October 1999.
The indexes for commodity groups are now calculated on a chained weight basis using Fishers’
ideal index with a reference year of 1997-1998 =
100. The index for most individual commodities
is based on annual gross unit value of production.

Canada

The Farm Product Price Index (FPPI) is
a monthly series that measures the changes in
prices that farmers receive for the agriculture
commodities they produce and sell. The price
index has separate crop and livestock indexes, a
variety of commodity group indexes such as cereals, oilseeds, specialty crops, cattle and hogs,
and an overall index. All are available monthly
and annually for the provinces and for Canada.

The FPPI is an important indicator of
the economic activity in the agricultural sector.
The series is used by agricultural economists and
analysts interested in the health of the agricultural sector, deflating agricultural commodity
prices, and policy development. The information
provided by FPPI is useful to producers, producer groups, commodity analysts from the private
sector such as grain companies and meat processors, international exporters, the banking sector,
and government agencies responsible for agriculture policies. The index expresses current
farm prices from the Farm Product Prices Survey as a percentage of prices prevailing in the
base period, 1997=100.

USDA, National Agricultural Statistics Service

The universe includes all Canadian agriculture operations as defined by the Census of
Agriculture, as well as all marketing boards,
agencies, commissions and federal and provincial government departments that collect data on
producer prices or data from which prices can be
calculated. A sample survey with a longitudinal
design is employed to represent the universe.

Prices are based on either administrative
data sources or monthly surveys of agricultural
producers or commodity purchasers. Administrative price data come from a wide variety of
sources. Some administrative sources are from
marketing boards such as the Ontario Wheat
Producers Marketing Board and the Nova Scotia
Grain Marketing Board. Market associations
such as CANFAX also provide price data.

Commodities are priced at point of first
transaction, where the fees deducted before a
producer is paid are excluded (e.g., storage,
transportation, and administrative costs), but
bonuses and premiums that can be attributed to
specific commodities are included. Commodityspecific program payments are not included in
the price.

The FPPI is based on a five-year basket
that is updated every year. This captures the continual shift in agricultural commodities produced
and sold. The annual weight base is derived
from the farm cash receipts series. There is a
two-year lag in the years used to construct the
basket because of the availability of farm cash
receipts data and to reduce the number of revisions made to the index.

USDA, National Agricultural Statistics Service

The seasonal weighting pattern was derived using the monthly marketings from 1994
to 1998. This weighting pattern remains constant
and will only be updated periodically, for instance during intercensal revisions or when the
time base is revised.

The FPPI is not adjusted for seasonality,
but the seasonal basket is used since the marketing of virtually all farm products is seasonal.
The index reflects the mix of agriculture commodities sold in a given month. The FPPI allows
the comparison, in percentage terms, of prices in
any given time period to prices in the base period, which at present is 1997=100. For more information about the FPPI from Statistics Canada, go to http://www .statcan.gc.ca/.

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.

The accuracy of the quality evaluation
depends on price and weight data. The methodology of the index and the price series which
construct the index have been designed to control error and to reduce the potential effects of
these. However, both administrative and survey
data are subject to various kinds of error. Survey
data are mainly subject to response and data capture errors. In reporting prices each month, farm
survey respondents are asked to report the average prices prevailing in their neighborhood, taking into account the various grades of each

1C-4

commodity marketed. Thus, average prices reported by these respondents may differ from
month-to-month due to changes in price, quality,
or both.

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.

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.

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
are used that are associated with the estimates of
production or distribution.

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, and any bonuses
and premiums that can be attributed to specific
commodities, but they exclude any storage,

1C-5

transportation, processing, and handling charges.
Those prices are collected directly and 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 historical trends
reviewed.

European Union

The European Union (EU) is a supranational organization of 27 countries across the
European continent. The countries are: Austria,
Belgium, Bulgaria, Cyprus, Czech Republic,
Denmark, Estonia, Finland, France, Germany,
Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain,
Sweden, and United Kingdom.

The common EU agricultural policy was
designed to meet two objectives. The first was to
guarantee the lowest possible food prices to the
consumer in the European Union. The second
was to secure farmers’ incomes with guaranteed
prices, which required harmonized statistics on
agricultural prices. Eurostat therefore collects
data on agricultural prices, which began in the
1960s, to analyze price developments and their
effect on agricultural income. For information
about Eurostat, go to http://epp.eurostat.ec. eu-

USDA, National Agricultural Statistics Service

ropa.eu/portal/page/portal/eurostat/home .

The agricultural price indices (API)
cover a wide range of products going into and
coming out of the farm. The output products
range from cereals, vegetables, and meat to milk
and eggs. The input products range from animal
feed, fertilizers, and seeds to energy and pesticides.

The output price indexes reflect the variations in the level of prices received by farmers
from products sold. As most agricultural products are processed before they are consumed and
almost always change hands more than once
before they arrive at the consumer’s table, they
are different from the consumer price indices
which measure the change of price directly paid
by consumers. The input price indexes reflect
what the farmer pays for feed and fertilizer.

Agricultural prices are collected through
so called “gentlemen’s agreements,” which
means that the data collection is not based on
EU legislation. Despite this, methods are harmonized and based on the Handbook for EU
agricultural price statistics. There are no major
problems with delays or coverage as the data are
needed. Go to http://epp.eurostat.ec.europa.eu
/cache/ITY_OFFPUB/KS-BH-02-003/EN/KSBH-02-003-EN.PDF for the handbook.

sion’s drive to simplify and reduce the administrative burden for respondents, agricultural input
and output prices are collected quarterly and
absolute prices annually since 2006.

Since 2006, the frequency and details in
some agricultural price data collections have
been reduced. API now produces quarterly price
statistics instead of monthly, and collection of
monthly absolute prices is now an annual collection. The list of variables for the collection of
annual absolute prices has been reduced to half,
from 414 products to 201. This follows the European Commission’s approach to simplifying
and reducing the administrative burden for respondents.

Although no legislation is planned for
the near future, it is quite likely that agricultural
price statistics will be regulated. The trend at
Eurostat is to base data collection on legislation
which many Member States also support. In
times of scarce resources, it is easier to collect
data that are mandatory rather than voluntary.
Methodology for the price program is based on
the Handbook for EU agricultural price statistics.

EU agricultural price indices are obtained by a base-weighted Laspeyres calculation
(2000=100), and are expressed both in nominal
terms, and deflated using an implicit harmonized
index of consumer prices (HICP) deflator.

The quarterly agricultural price indexes
are used by the European Commission’s Directorate-General (DG) for Agriculture to form and
evaluate agricultural policy. Farming organizations such as the European Committee of Professional Agricultural Organizations (COPA) are
also users. Following the European Commis-

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Chapter Two. Prices Received Program

IN THIS CHAPTER

Edit, Analysis, and Estimation ..................... 2-17

History / Background .................................... 2-2

Livestock and Livestock Products ......... 2-22

Survey Methodology ..................................... 2-3

Poultry and Specialty Commodities ...... 2-24

Frame Development................................... 2-4

Field Crops ............................................ 2-24

Livestock and Livestock Products .......... 2-4

Fruit and Nuts ........................................ 2-27

Poultry and Specialty Commodities ....... 2-5

Commercial Vegetables ........................ 2-29

Field Crops ............................................. 2-5

Submission of Estimates ........................... 2-31

Fruit and Nuts ......................................... 2-5

Agricultural Statistics Board Review ....... 2-31

Commercial Vegetables.......................... 2-6

Revisions .................................................. 2-31

Frame Maintenance ................................... 2-7

Limitations of Series ................................. 2-32

Sample Design and Selection .................... 2-8

Prices Received Index .................................. 2-34

Livestock and Livestock Products .......... 2-8

History / Background................................ 2-35

Poultry and Specialty Commodities ....... 2-8

Reference Period Selection ....................... 2-36

Field Crops ............................................. 2-8

Commodity Selection ............................... 2-37

Fruit and Nuts ......................................... 2-9

Basis of Weights ....................................... 2-37

Commercial Vegetables.......................... 2-9

Link Date Selection and Link Process ...... 2-39

Questionnaire ............................................ 2-10

Index Computation .................................. 2-39

Livestock and Livestock Products ......... 2-11

Uses and Limitations ................................ 2-41

Poultry and Specialty Commodities ...... 2-11

Publication and Dissemination .................... 2-42

Field Crops ............................................ 2-12

Publication ................................................ 2-42

Fruit and Nuts ........................................ 2-13

Dissemination ........................................... 2-43

Commercial Vegetables......................... 2-13

References .................................................... 2-44

Data Collection ......................................... 2-13
Use of Administrative ............................... 2-16

Appendix
Tables......................................... 2T-1 – 2T-36
Glossary of Selected Terms ....... 2G-1 – 2G-36

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2-1

This chapter presents program history and
background information and the current methodology used in NASS‟s Prices Received program.
This program covers the prices received by producers for the commodities they sell in their local
market or at the point where they deliver their
product. Since the program‟s inception, modifications are necessary to address the changing environment and market in agriculture. The need for
timely and accurate price data is more demanding
than ever.

USDA's National Agricultural Statistics
Service (NASS) estimates monthly prices received
by producers for about 60 crop and livestock items
and annual or market year average (MYA) prices
for 35 additional items. MYA prices are estimated
for States where sample surveys do not allow
monthly estimates because of limited sales. Prices
for fruit and vegetable crops for processing are
estimated on a market year average basis as most
production is contracted. Contract prices do not
become final until after crop delivery. Prices received by producers and Prices Received indexes
are published each month in Agricultural Prices.

The index series has maintained the 19101914 base reference period as prescribed in permanent legislation. A more recent base period is
provided and has undergone a number of updates
through the years. The current program survey
methodology to include universe development and
maintenance, survey sample design and selection,
survey instrument design, data collection means,
use of administrative data, data review, analysis,
and summarization, estimate construction, estimate revisions, and public availability of the price
estimates are presented. To provide as much detail
and transparency in this document as possible,
overlapping discussion is necessary. This chapter
also provides a presentation of data needs and uses
2-2

for the data as well as limitations with the data
series.

History and background
The U.S. Department of Agriculture
(USDA) began collecting prices received by farmers in 1866. The early reports covered December 1
prices for 10 crops. Collection for six species of
livestock farm values (January 1) began in 1867.
Prices as of the first of each month were collected
in 1908 for eight crops, and during the next 2
years, monthly prices received for livestock, poultry, and their products were added.

Monthly prices weighted to seasonaverage prices have replaced the December 1 prices for valuing crop production and sales. January 1
values have continued to be used for livestock inventories, except for hogs and poultry. Hogs and
poultry inventory values as of December 1 began
in the late 1960s.

In 1924, monthly prices received were
collected as of the middle of the month instead of
the first. The series for the earlier years were converted to a mid-month basis to maintain continuity.

From time to time, commodities have
been added to or dropped from the price program
because of their changing importance. While few
commodities have been added since the middle
1930s, some have been divided into marketing or
utilization classes. In 1944, weights for aggregating State prices to a U.S. price were shifted from
production to estimated sales. Most regional prices
were discontinued in January 1973.
USDA, National Agricultural Statistics Service

In 1977, the grain price survey began using a probability sample. Actual quantities sold
and dollars received from those sales are collected
for the entire preceding month. For the current
month, preliminary month (mid-month) price estimates are based on market quotations, grower
surveys, and data published by Government agencies and private associations.

The last price program review for Prices
Received along with Prices Paid occurred in 1995.
In this review, no changes were made to the coverage of Prices Received data. Several changes,
however, were made to the Prices Received index
which include using five year moving weights,
seasonal marketing adjustments, changing the base
reference period to 1990-1992 = 100, and index
commodity coverage. This is further explained in
the Prices Received index section

The current series of Prices Received by
farmers include monthly prices for most major
agricultural commodities. MYA prices are estimated for agricultural commodities that have production estimates. Milk, fruits, and vegetables
have prices by product use. State prices are available for many commodities. Equivalent prices by
location in the marketing channel are calculated
for citrus fruits.

Survey Methodology
The universe for agricultural commodity
prices is all sales from producers to first buyers.
Prices for points of first sale can be obtained from
either producers or first buyers. Individual producers generally market commodities relatively few
times during the year. A single buyer is a more
active participant on a continuing basis and can
USDA, National Agricultural Statistics Service

report on many transactions. Buyers, then, are the
preferred data collection contacts.

Price reporters include independent local
buyers like grain elevators and produce dealers,
cooperative marketing organizations, Federal milk
market administrators, State fruit boards, other
marketing agencies, processors, canneries, slaughtering plants, other Government agencies, and
producers or growers. Data furnished by the different types of reporters vary in usefulness, depending on accessibility, timeliness, and completeness. The cost of developing a complete sampling frame of all buyers of farm products far exceeds any available resources. Market channel
surveys provide information on major sales localities of major agricultural products. Sample surveys
are then concentrated in the market channels accounting for the bulk of commercial sales.

The sampling frames for agricultural
commodities are segmented into several commodity areas. Grain price information is obtained from
grain elevators and buyers. Hay price indications
are gathered from surveys of dealers, hay auctions,
and other buyers or other lists such as dairies or
cattle feeders. Cotton price information is obtained
from contacts to cotton buyers, including cooperatives and private merchants. Peanut price data is
gathered from all known peanut buyers. Firms are
stratified or grouped according to size or volume
of products purchased. A probability sample proportionate to size is selected from each stratum.
This universe and sample process allows NASS to
cover a high proportion of products sold at minimum cost. Livestock prices are collected by the
Agricultural Marketing Service (AMS).

Probability sample surveys used to collect
price data for most major crops increase accuracy,
give greater quality control, provide a method for
2-3

estimating sampling error, and use smaller but
more representative samples.

Price surveys for prices received for corn,
wheat, soybeans, cotton, and rice are designed to
provide a coefficient of variation (CV) of less than
one percent at the U.S. level and less than five
percent at the State level. State level CVs for major producing States run as low as two to three
percent. Nonsampling errors in conducting the
surveys may be larger than the sampling errors.
Current methods of summarization for nonprobability commodities are not designed to calculate sampling errors. Analytical measures, however, approximate the U.S. relative sampling errors
at around five percent. Any nonsampling errors are
attributed to obtaining correct data, differences in
interpreting questions and definitions, and mistakes in coding or processing the data. Efforts are
made at each step in the survey process to minimize nonsampling errors.

Primary sales data used to determine grain
prices are obtained from probability samples of
some 1,900 mills and elevators. The probability
survey procedures ensure that virtually all grain
moving into commercial channels has a chance of
selection in the survey. States surveyed account
for 90 percent or more of total U.S. production.
Livestock prices are obtained from USDA‟s Agricultural Marketing Service (AMS). Sales between
farms are not included since they represent very
small percentages of the total marketings. Grain
marketed for seed is also excluded. Fruit and vegetable prices are obtained from sample surveys and
market data from private marketing organizations,
State agencies, universities, and from USDA‟s
AMS.

2-4

Frame Development

The universe for agricultural commodity
prices is all sales from producers to first buyers.
The universe for Prices Received by producers for
commodities sold, therefore, is comprised from
various sources. Sample units for frame construction are classified in the following categories:
merchants, farm produce dealers at local shipping
points, mills, and elevators, Federal Milk Order
Administrators, State milk control agencies, milk
distribution and manufacturing plants, cooperative
marketing organizations, bankers, and farm and
ranch operators.

The frame development for the following Prices
Received commodity groups vary dependent on
business type and commodity. A commodity type
is one of the following five groups.
Livestock and Livestock Products
Poultry and Specialty Commodities
Field Crops
Fruit and Nuts
Commercial Vegetables
When building the frame for all five commodity
types, responsibility for universe building is
shared between the list frame developers, commodity analysts, and survey statisticians.

Livestock and Livestock Products. The target population for livestock products like milk contains
any entity involved with the purchase of livestock
products from producers. Livestock prices are obtained from AMS; so, a frame for livestock is not
needed.

USDA, National Agricultural Statistics Service

Sources for the frame development and
maintenance of livestock products include:
Producers in the Quarterly Milk Production Survey .
Buyers, cooperatives, wool pools, and
Farm Service Agency (FSA) records.
Data from AMS, State Departments of
Agriculture, and State universities

Poultry and Specialty Commodities. NASS collects no price data from producers for the highly
integrated poultry industry. A list frame of handlers, slaughtering plants, and packing plants is
maintained for surveying when Agricultural Marketing Service / Market News Service
(AMS/MNS) price data for chickens and live turkeys are not available. State departments of agriculture, national poultry associations, State poultry
improvement associations, extension poultry
agents at State universities and county agents provide names of egg handlers. A sampling frame of
bee and honey producers is developed and maintained.

Field Crops. The target population for field crops
includes establishments which sell or purchase
field crops directly from the producer. Thirtyseven monthly program States are sampled on a
probability basis.

NASS constructs field, oilseed, specialty
and other crop Prices Received lists using the following procedures:
Develop and maintain a list of elevators,
dealers, and specialty buyers that purchase grain, oilseeds, rice, peanuts, dry
beans, pulse crops or cotton for monthly
and probability surveys that purchase directly from farmers. Information captured
also includes capacity size and multi-unit
USDA, National Agricultural Statistics Service

status for each operation. Lists are kept
current and complete through processing
of monthly updates.
Develop and maintain a list of growers,
buyers, ginners, and other agricultural entities for crops surveyed on a nonprobability, non-monthly basis. Updates
are processed on a regular basis to keep
lists current and complete with priority
given to the largest growers and buyers
Develop and maintain universe lists to
conduct supplementary surveys when additional price data are needed to strengthen price indications.
Sources of operations, buyers, and other
entities for the Prices Received probability
and non-probability populations include:
- Farm Service Agency,
- Agricultural Marketing Service / Market New Service,
- State Departments of Agriculture,
- Various organizations such as licensing bureaus, grain associations, commodity associations, cooperatives, extension crop specialists at universities,
dealers, auction facilities, factories,
mills, buyers, feeders, brewers, ginners, processors, distributors and other
related organizations.
Fruit and Nuts. The target population for fruits
and nuts consists of entities involved with the sale
or purchase of fruits and nuts at the first point of
sale. NASS constructs fruit and nut Prices Received lists using the following procedures:

2-5

Grower contacts originate from the following sources:
- Farm Service Agency,
- Agricultural
Marketing
Service
(AMS), and
- Various organizations like grower associations, marketing associations,
cooperatives, dealers, packers, shippers, processors, wineries, exchanges,
marketing boards, administrative
committees, county extension agents
and other related persons or groups.
Maintain current grower lists and other
non-grower lists related to the fruit and
nut industries for commodities included in
the NASS estimation program.
- Direct purchases from producers by
non-grower entities.
- Maintain complete coverage of the
largest growers and buyers as no area
frame is utilized to supplement the list
frame populations.
Maintain a list of packers, processors, cooperatives, and other related entities purchasing directly from producers. Sources
include:
- AMS,
- State Departments of Agriculture,
- Extension fruit specialists at universities, Trade magazines.
States with access to administrative data
sources.
- Utilize these sources and do not necessarily maintain a list of other contacts.
- Maintain a list frame to conduct supplementary surveys when additional
price data are needed to strengthen
price indications.

2-6

Commercial Vegetables. The target population for
vegetables consists of any entity involved with the
sale or purchase of vegetables at point of first sale
(POFS). POFS prices reflect the point in the marketing chain where the grower no longer owns the
commodity. NASS constructs commercial vegetable contact lists using the following procedures:

Maintain a list of contacts with knowledge
of fresh market prices, to supplement administrative data or when these data are
not available.
- The list includes growers, roadside
and farmer markets, U-pick sales,
grower auctions, dealers, packers,
commodity marketing associations,
producer co-ops or market orders.
- Other sources include terminal markets and packinghouses.
- Maintain current and complete list
frame, to help manage the variability
within different vegetable industries
and localities. Priority given to maintaining complete coverage of the largest growers and buyers.
Maintain an up-to-date list of processors
to represent plant door pricing.
- Processor sources include canners‟
and freezers' associations, trade journals, State licensing boards, and health
inspection records.
Federal/State Market News Service provide sufficient coverage for major producing areas during the primary marketing
season.
- Maintain a list frame to conduct a survey when no administrative data
and/or when administrative data needs
strengthening.

USDA, National Agricultural Statistics Service

Frame Maintenance
NASS focuses on regular frame maintenance to maintain current and complete list frames
to obtain complete coverage resulting in reliable
indications for setting accurate official estimates.
The following Prices Received commodity groups
follow the same frame maintenance process.
Livestock and Livestock Products
Poultry and Specialty Commodities
Field Crops
Fruits and Nuts
Commercial Vegetables
NASS reviews and updates the list frame universe
for the five commodity groups using the following
procedures:
Annually and prior to the sampling cycle,
review and update frame with new and existing records and control data.
- Review established lists checking for
omissions, name changes, mergers
and consolidations.
- Add new plants.
- Add new products by established
plants.
- Update record profile type information identifying plant closings
(both temporary and permanent), and
any contact changes.
Check for duplication between list frame
units at least once a year
Process survey data and list frame control
data through a NASS sampling application.
- During the annual sampling cycle,
these data are processed through the
sampling application with the most reUSDA, National Agricultural Statistics Service

-

cent/largest control data selected for
each associated list frame record.
Update control data for use in selecting the Prices Received samples for
the next survey year.
Add new control data to list frame
records.

Directly after program surveys are completed, NASS manually updates name, address, status codes, and control data. Surveys occur on a weekly, monthly, quarterly, annual or intermittent basis.
- Manually updating records through a
NASS database application. Name,
address, status code and other data
from surveys are entered one record at
a time. Data from new lists received in
non-electronic form follow the same
process.
Collect control data through NASS program surveys and the list maintenance
surveys. Records with control data become eligible for survey sample selection.
Survey control data are captured to list
frame records through automated or manual means.
A resolution application that processes databases obtained through list building efforts.
- After duplication between the list
frame and the outside database is removed, new records automatically get
appended to the list frame data base.
- New list frame records cannot be used
for surveys unless the appropriate status code and control data are present.

2-7

Sample Design and Selection

A sample process is utilized for field
crops, milk, and honey. Other Livestock and Livestock products use administrative sources and
State Field Offices (FO) determined agribusinesses. Fruits & Nuts and Commercial Vegetables use
administrative sources and survey growers for
MYA data and monthly revisions.

Livestock and Livestock Products. No Headquarters (HQ) sampling for Livestock and Livestock
products except for milk.

Milk production estimates are made for all
fifty States. There are currently twenty-three
States in the monthly estimating program covering
93 percent of the total milk production. All other
States are estimated quarterly (January, April, July, and October). State coverage is reviewed every
five years after the Census of Agriculture. The
milk survey uses a stratified random sample within
a State based on the size of the operation. Sample
sizes are based on historical response rates, number of milk operations, and coefficients of variation (CVs).
Poultry and Specialty Commodities. No HQ sampling for poultry and specialty commodities except
for honey. Mink, catfish, and trout are completely
enumerated annually.
Bee and honey data are sampled in all 50
States. Beekeepers must have more than five total
colonies to be in the population. The sample is
stratified by number of colonies, a honey producer
indicator, and a multi-State operation indicator.

pulse crops, peanuts, cotton, and hay. Table 2.1
shows the list of States by the commodity groups.

Cotton. Seventeen States are sampled for the upland cotton survey. The sample cycle begins in
September. Seven States are sampled for the annual survey. The seven States involved are Florida,
Kansas, New Mexico, Missouri, Oklahoma, South
Carolina, and Virginia. Ten States are sampled for
the monthly survey. The ten States are Alabama,
Arizona, Arkansas, California, Georgia, Louisiana,
Mississippi, North Carolina, Tennessee, and Texas.

The number of bales of cotton produced
by the universe operator is the primary stratification variable for the 17 States. One stratum is for
extreme operators which are sampled with a probability of one because of their importance. Table
2.2 shows the strata used for cotton by the States.

Feed Grains and Oilseeds. NASS samples feed
grains and oilseeds together on the grain survey.
The sample cycle begins in October. Thirteen
States are sampled for feed grains and oilseeds.
The 13 States are Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Nebraska,
North Carolina, Ohio, Pennsylvania, Tennessee,
and Wisconsin.

The stratification for each State is unique
to that State. The commodities within the State
determine the strata. Stratification is based on the
storage capacity of the facility and elevator type.
Specialty elevators are stratified to insure adequate
coverage for rare commodities. Table 2.3 shows
the types of elevator indicators for stratification.

Field Crops. Thirty-seven States are sampled
across six groups of commodities: grains, oilseeds,
2-8

USDA, National Agricultural Statistics Service

Small Grains and Pulse Crops. Nineteen States are
sampled for small grains. The sample cycle begins
in July. The 19 States are Arizona, Arkansas, California, Colorado, Idaho, Kansas, Michigan, Minnesota, Montana, North Dakota, Nebraska, New
York, Oklahoma, Oregon, South Dakota, Texas,
Utah, Washington, and Wyoming. All the States
except Nebraska are sampled for pulse crops.

Like feed grains and oilseeds, the stratification for each State is unique to that State for
small grains and pulse crops. The commodities
within the State determine the strata. Stratification
is based on the storage capacity of the facility and
elevator type. Specialty elevators are stratified to
insure adequate coverage for rare commodities.
Table 2.3 shows the types of elevator indicators
for stratification.

Peanuts. Seven States are sampled for peanuts.
The seven States are Alabama, Florida, Georgia,
New Mexico, North Carolina, Texas, and Virginia.
The sample cycle begins in August. Data for Mississippi, Oklahoma, and South Carolina are collected by other States.

Commercial Vegetables. No sampling is conducted from HQ for commercial vegetables. Administrative data is used to establish price estimates.

Coefficients of Variation by Reference Months
for Sampling Process. Target coefficients of variation (CVs) are specified for the U.S. for selected
months, where the U.S. is defined to be the States
in the Prices Received estimating program for a
specific commodity. These months were chosen
based on their relative ability to monitor survey
performance. The target CVs are for the reweighted ratio price estimator from the list frame.
Table 2.4 shows the target CVs by commodity and
reference month.

State Level Sample Size. Once a U.S. sample
count is determined, NASS uses CVs defined at
the stratum level within the State to calculate the
sample size at the State level. The stratum level
CVs within the State are loosely defined. Then
NASS adjusts the State allocations (if needed) to
assure the CVs meet the U.S. target level.

Prior to any data collection operations,
State FOs compare the peanut buyers with Farm
Service Agency (FSA) known buyers. Go to
http://www.fsa.usda.gov/FSA/ for more information about the FSA.

Year to year samples at the State level are
fairly consistent. If the target CVs at the U.S. level
are not met, then the sample sizes are increased in
states with high CVs. Likewise to maintain reasonable sample sizes, if a sample consistently
maintains a low CV, the sample size for that state
is lowered.

Fruit and Nuts. No sampling is conducted from
HQ for fruit and nuts. Administrative data is used
to establish price estimates.

NASS follows a work schedule for each
commodity. State FOs are notified by HQ when
the sample process is complete. The State FOs can
then begin sample preparations for data collection.

USDA, National Agricultural Statistics Service

2-9

Questionnaire

Under provisions of the Federal Reports
Act, all federally funded survey questionnaires
must be cleared in advance by the Office of Management and Budget (OMB) and must carry an
OMB approval number and expiration date. New
questions, questionnaires, and/or requests for revisions in present questionnaires are submitted to the
Questionnaire Design Section at least 6 months
prior to the scheduled use of the questionnaire
along with appropriate “supporting statement”.

Monthly and annual master questionnaires
contain the questions approved by OMB. A check
sheet sometimes accompanies the master questionnaires mailed to each State FO indicating the
questions approved for a particular State FO and
the month(s) each question is to be used. Some
questions are specifically approved for a particular
State FO and are so noted. All other questions may
be used in any State, provided approval is obtained
from the Questionnaire Design Section. All questionnaires whether HQ or State FO generated must
use the question wording contained on the master
questionnaire.

Paper forms or computerized instruments
(CATI, CAPI) are used for collecting data. The
questionnaires and computerized instruments include an introductory paragraph about the importance and need for the data being collected.
This introduction also informs the respondent of
the confidentiality of the data provided and that
response is voluntary and not required by law.

2-10

Questionnaires are used to collect information from respondents. NASS uses paper forms
or computerized instruments like CATI or CAPI
for this purpose. CATI and CAPI are computerized assisted interviewing techniques using telephone or personal interview, respectively. The
questionnaires and computerized instruments include an introductory paragraph about the importance and need for the data being collected.
This introduction also informs the respondent of
the confidentiality of the data provided and that
response is voluntary and not required by law.

A general questionnaire once used for a
number of commodities is no longer adequate for
estimating prices received by producers. Specialized inquiries are now used for most farm produced commodities. Price data alone do not provide sufficient information to adequately estimate
prices for most commodities. Information on
quantities and uses are also needed for developing
reliable weighted average prices at State and National levels.

The State FOs design questionnaires for
commodities in fruit and nuts and vegetables specific to their State. For other commodities, NASS
prepares a master questionnaire for distribution to
the State FOs. Questionnaires are prepared for the
five commodity groups: livestock & livestock
products, poultry & specialty commodities, field
crops, fruit & nuts, and vegetables.

USDA, National Agricultural Statistics Service

Livestock and Livestock Products. NASS does not
conduct data collection activities for livestock.
NASS obtains livestock data from AMS. For livestock products such as milk and honey, questionnaires are prepared for data collection activities.
Agency policy is followed when using Administrative or outside data sources. See the Use of
Administrative Data Section of this chapter for
details.

Milk. NASS conducts monthly and quarterly milk
production surveys collecting information on the
number of milk cows, number of cows milked, and
total milk produced. Each State Field Office also
conducts milk price inquiries either by contacting
dairy programs at State agricultural offices, Agricultural Marketing Service (AMS), or nongovernment sources like Dairy Farmers of America.

NASS prepares a master questionnaire for
use by all the States in the milk production program. The reference date for the monthly or quarterly milk production surveys is the first day of the
month or at the beginning of a quarter. The quarters include January, April, July, and October.

The State FOs collect two grades of milk,
fluid grade and manufacturing grade. Within each
grade, information about the quantity of milk produced and price received are collected. The milk
price inquiries conducted by the States use a
month as the reference period.

USDA, National Agricultural Statistics Service

Poultry and Specialty Commodities - Honey.
NASS prepares a master questionnaire for use by
all program States. December 15th is the reference
date for honey stocks in the Bee and Honey survey. All other questions use the calendar year as
the reference date. To prevent duplication across
States, data for operations within a State are collected for all States individually. Data for production including number of bee colonies, pounds of
honey harvested for sale, and total dollars received
are collected.

Sales of honey are by four color classes.
The Pfund scale expressed in millimeters is a scale
used in the honey industry to describe the color of
honey. Color is not a factor in grades of honey in
the U.S. but the color description which accompanies the grade. August Herman Pfund, American
physicist, discovered the hydrogen Pfund lines
used in the scale to measure color classes. Table
2.5 shows the color classes. Specialty areas include sourwood, tupelo, and buckwheat.

The pounds of honey produced and dollars
received from sales are by marketing channels.
The four marketing channels include sales to cooperatives, sales to private processing companies,
wholesale, and retail.

Mink. The Utah and Wisconsin FOs handle the
distribution of questionnaires and the data collection for mink. Prices are collected at the first point
of sale before marketing costs are deducted. Other
data collected include sales of pelts by color class
by State, number of farms, females bred, and value
of mink pelt production. The questionnaire lists
the colors by trade names known in the industry.
The trade names are categorized by color class
during the editing process. Table 2.6 shows the
color classes by trade names.
2-11

Catfish. States in the catfish program are Alabama,
Arkansas, California, Louisiana, Mississippi,
North Carolina, and Texas. Data collected include
number of farms, water area devoted to production, number, pouonds, and value of catfish produced, point of first sale, and inventory by size of
fish. Table 2.7 shows the size categories.

Grains (except Rice), Pulse Crops, and Oilseeds.
NASS prepares a master questionnaire for use by
States in the monthly grain, pulse crops, and
oilseed survey. The monthly survey uses the first
half of the month as a reference period for midmonth data and the previous month as the reference period for full month data.

Trout. Trout includes all freshwater species of
trout as well as sea run trout and steelhead that are
raised in a controlled environment. Fish caught in
the wild are excluded. Data collected include
number of farms, inventory by size, pounds, and
value of trout produced for trout sold and distributed for restoration, conservation, or recreational
purposes. Table 2.7 shows the size categories.

Questions in the survey include quantity
purchased, average price purchased in dollars, and
the total value received for the type of grain, pulse
crop, or oilseed. The respondent specifies the unit
of measure for which the commodity is purchased.
There are four units of measure, bushels, pounds,
tons, or hundredweight.

Field Crops – Cotton. NASS prepares a master
questionnaire for use by States in the monthly and
annual cotton surveys. Two versions of cotton
questionnaires are used, one version for private
merchants and the other for cotton cooperatives.
Private merchant questionnaires collect cash purchases, contract deliveries, and cotton under loan
acquired from producers by option payment. Cooperative questionnaires gather data for pool marketings and cash purchases. The monthly survey
uses the first half of the month as a reference period for mid-month data and the previous month as
the reference period for full month data.

Questions in the survey include number of
bales, average price in cents per pound for cash
purchases and contract deliveries, and type of cotton. The two types of cotton produced in the U.S.
are Upland cotton and American Pima cotton.

2-12

Price data for corn, wheat, oats, barley,
soybeans, sorghum, and proso millet are collected
monthly. Corn includes yellow and white corn.
Wheat includes winter, Durum, other spring, hard
red winter, soft red winter, and white. Barley includes feed and malting barley. Price data are collected for pulse crops, including lentils, dry edible
peas, chick peas, Austrian winter peas, and wrinkled seed peas.

Price data are collected for oilseeds, including canola, flaxseed, mustard seed, rapeseed,
safflower, soybeans, and sunflowers. Sunflower
types include oil and non-oil.

Rice. NASS prepares two master questionnaires
for rice, one for cooperatives and one for private
merchants. Both surveys use the first half of the
month as a reference period for mid-month data
and the previous month as the reference period for
full month data. All States in the rice estimating
program submit rice prices monthly.
USDA, National Agricultural Statistics Service

Prices for the three types of rice - long,
medium, and short grain - are collected for both
questionnaires. The questionnaire for cooperatives
allows respondents to report an “all rice” price.

Questions in the private merchant survey
include quantity purchased and total dollars paid
for the three types of rice. The respondent specifies the unit of measure used. There are three units
of measure: bushels, barrels, or hundredweight.

Questions in the cooperative survey include quantity shipped and average value per hundredweight in dollars and cents for the three types
of rice. Items to be deducted from the reported
price are government payments, storage costs,
losses from hedging, interest expenses, and handling and processing until the product is sold.
Items included in the price are interest income,
gains from hedging, storage income, capital retains
from rice marketings, producer check-off fees, and
transportation costs prior to the cooperative acquisition.

Peanuts. NASS prepares a master questionnaire
for use by States in the weekly peanut survey. The
survey includes all known peanut buyers. The
weekly survey uses the previous week as the reference period and each week, the previous three survey periods are open for revision. All ten peanutproducing States are included on the weekly survey.

Questions in the survey include pounds
purchased and dollars paid for the purchase, by
type of peanut. There are four types of peanuts in
the survey: Runner, Spanish, Valencia, and Virginia. Purchases and dollars paid are broken into
two categories: peanuts under loan acquired from
USDA, National Agricultural Statistics Service

producers by option contract and peanuts acquired
from producers by transactions other than an option contract (direct cash purchases and direct
marketing contracts). Discounts for quality factors,
transportation charges from farm to buying points,
and freight differentials are deducted from the
weekly gross value of purchases from producers.
Premiums for producers delivering the peanuts and
quality factors are added to weekly gross value of
purchases. Options for peanuts redeemed from
CCC loan and seed bonus for peanuts redeemed
from CCC loan are also added to the gross value
of purchases from producers.

There is no monthly survey for peanuts.
Quantity and price recommendations for the previous entire month and current mid-month are
generated based on the weighted averages from
the weekly survey.

Fruit and Nuts. No master questionnaires are prepared by Headquarters and distributed to the States
for prices of fruit and nuts.

Commercial Vegetables. No master questionnaires
are prepared by Headquarters and distributed to
the States for prices of vegetables.

Data Collection

Grain Prices Received surveys are primarily self administered (mail, fax, EDR). Electronic
Data Reporting (EDR) through the Internet begins
on the first business day of the month for States
that use check data for their mid-month prices and
begins on the last day of the mid-month reference
period for States that use survey data for midmonth prices. Grain Prices Received surveys be2-13

gan using EDR in July of 2005. The price data
collected from producers and agribusinesses are
confidential and responses are voluntary. Livestock price data are collected through AMS which
include statistics compiled by Agricultural Marketing Service / Market News Service
(AMS/MNS).

Each State FO prints the questionnaires
made available from NASS Headquarters. NASS
uses a standardized questionnaire to ensure that
data is comparable across States. State FOs submit
any questionnaire changes to NASS for approval.
Paper questionnaires are kept identical to the EDR
version. States and NASS Headquarters work together to have concise and efficient instruments to
collect statistically sound data.

Several State Field Offices collect data via
their office fax number. The fax number appears
on all questionnaires. Each year respondents receive a letter explaining the importance of the
Prices Received surveys and stresses the use of the
fax phone number as well as the EDR option for
questionnaire submission.

State FOs collecting data for another State
FO forward them to the State FO to which the data
pertains. Instruction cards on how to complete the
paper questionnaire or the EDR version get included to insure consistency across questionnaires.

Phone enumeration follow-up is used to
ensure a good response rate and survey coverage.
Field enumeration is used when requested by the
respondent and for those who are reluctant to participate.

2-14

State FO editing adjusts questionable data
prior to key entry when respondent information is
not clear. A call back is made to verify the validity
of the data. Justification codes and comments
show the reasons for the data changes and who
authorized the change.

Enumerators verify questionable data
while conducting a telephone or field interview.
Enumerators ask probing questions about ambiguous data. Enumerators post written validation
comments for any questionable data revised or
verified to be correct. For example, when an organic operation reports an extremely high price,
the enumerator writes a comment to support why
the response is valid.

Prices Received data is never imputed any
time during the data collection or data review process. Missing data can be coded in the following
circumstances:
A respondent reports data for one commodity, but data for a second commodity
seems unreasonable., the good commodity
data can be used by coding the unreasonable data as missing.
A report with suspect data can have the
data cell coded as missing and later submit
the valid data as a late report.
A respondent reports corn and soybean data but does not know the wheat purchases.
A missing data code is valid for the wheat
cells.
A respondent cannot report both the quantity and dollars for a commodity (i.e.,
knows the quantity but not dollars or vice
versa). A missing data code is valid for the
unknown data.

USDA, National Agricultural Statistics Service

Rice and peanut price surveys contact all
known buyers. Inaccessible or respondent refusal
reports are edited based on prior knowledge of the
operation and other completed operations of similar size. Outlier data verified by the respondent is
coded to be included as reported.

Respondents have the option of reporting
in bushels, pounds, tons, or hundredweight (cwt).
The computer edit converts the reported unit to the
standard published unit of bushels for feed and
small grains and cwt. for most oilseeds and pulse
crops.

Honey Data Collection Process. The collection of
honey price data differs from the collection of
price data for other commodities. Honey price data
is collected by Data Collection Centers (DCC) and
estimated in Estimation Centers (EC). Honey
quantity data are converted from pints and quarts
to pounds during data collection.

In 2006, the data collection and estimation
activities for the Bee and Honey Inquiry survey
were consolidated regionally, with one DCC and
four EC. In 2009, two DCCs began data collection
activities. The Bee and Honey Inquiry survey collects prices for the current and previous year honey crops marketed in the current calendar year.
There is a Wyoming Data Collection Center (WY
DCC) and an Arkansas Data Collection Center
(AR DCC). Florida, Wisconsin, North Dakota, and
California have an Estimation Center. The Bee and
Honey survey covers all States except Puerto Rico.
Table 2.8 shows the relationship between the
DCCs and ECs and the States covered by each.

USDA, National Agricultural Statistics Service

The WY DCC is responsible for the following:
Receive data collection method codes
from all Client States (CS).
Transmit data collection method codes to
Print Mail Center.
Transmit data collection method codes to
the AR DCC in preparation for follow-up
phoning.
Process all mail returns and paper forms
for all Client States.

All paper forms held and completed by CS
will be sent in to the WY DCC for check-in, processing, keying, scanning, and loading to the
NASS developed edit and analysis tool. The following processes are completed.
Load national sample to EDR.
Transmit final EDR codes back to all Client States to use in data collection.
Process all EDR data for the nation, load
into Blaise and transmit EDR data to EC.
Phone follow-up for West & West Central
EC regions.
Transmit daily check-in files to the AR
DCC.
Transmit data daily to the EC for editing.

Before data collection begins, the WY
DCC processes all CS data collection method
codes for each record. Each State field office assigns a data collection method code for each record in their sample, and transmits these to the WY
DCC. Before phone follow-up begins, the WY
DCC transmits data collection method codes to the
AR DCC which assists with the telephone followup.

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The WY DCC is responsible for submitting to the Print Mail Center, the U.S. file for all
States containing name and address data for potential mail respondents. The WY DCC is responsible
for submitting final EDR codes back to all States
so they can offer EDR to those respondents they
wish to hold and mail themselves. The States must
not mail before the final EDR codes are received
from the WY DCC.

The AR DCC is responsible for the following:
Phone follow-up on East and East Central
EC Region.
Transmit data daily to the EC for editing.

The AR DCC receives a daily check-in
file from the WY DCC of mail and EDR receipts,
to facilitate management of Computer Assisted
Telephone Interview (CATI).

Use of Administrative data

External survey data and administrative
data are used by NASS to measure the performance of Agency surveys and, in some cases, to
set official estimates. Evaluation of external and
administrative data occurs before use in the estimation process. The use of administrative data to
set official estimates is valid under NASS policy
providing the differences including reliability,
coverage, and definitions are understood and documented.
The following four areas are evaluated and
documented before the administrative data is used
to establish price estimates.

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Frame Maintenance. Define and evaluate the
universe represented by the external and administrative data in order to:
identify differences between that universe
and the target population used in NASS
indications and estimates,
ensure the universe is current,
determine the degree of incompleteness,
identify the potential for duplication within the universe,
recognize potential maintenance problems,
and
determine whether a census or sample was
used.

Data Collection. Review the conditions under
which the data are collected to determine whether:
the data supplied by the respondent are
voluntary or required by law,
data represents Point Of First Sale prices;
therefore no NASS surveys or adjustments
are needed,
the forms used to collect the data are well
designed and worded in such a way that
accurate data are obtained,
the terms and definitions used are consistent with those used by NASS in developing its indications and estimates,
the reference date, survey period, cut-off
dates, and time of release are adequate for
comparison with NASS data,
the method of data collection is identified,
potential nonsampling errors are identified
and minimized,
follow-up methodology for refusals and
inaccessible units is used, and
the actual coverage approached the targeted coverage.

USDA, National Agricultural Statistics Service

Data Validation and Summary. Review the handling of data after data collection to determine:
what validation procedures and edit
checks are used,
how refusals and nonrespondents are
treated and what imputation procedures
are used in the summary process,
how invalid data are handled,
how the data are expanded and/or summarized,
how sampling errors are estimated when
sampling is used,
how outliers or unusual data situations are
identified and handled in the summary,
if data are correctly updated when errors
are found, or if later period totals are adjusted to account for corrections and late
reports.

For some commodities, administrative data may be incomplete. In these cases, survey data
are used to revise price estimates. For example, the
January Sheep & Goat and Mink surveys are used
to revise wool, mohair, and mink prices, respectively. Government program support is provided if
the average price received by all producers for
shorn wool marketed during the year is below the
support price. Producers need to be surveyed because program participation is incomplete and may
not reflect an accurate market price.

The 2008 farm bill (P.L. 110-246, Title
I, subtitle B) provides wool and mohair producers with nine-month nonrecourse marketing assistance loans and loan deficiency payments for crop years 2008-2012. Producers
who obtain nonrecourse loans pledge their
crop as collateral and can forfeit their crop in
full payment of the loan. USDA determines
the loan repayment rate based on either the
lesser of the loan rate plus interest, or a rate
that will limit loan forfeitures, stock accumuUSDA, National Agricultural Statistics Service

lation, and storage costs, and will allow competitive marketing of the commodity. Producers who agree not to take out a loan can receive loan deficiency instead. The loan deficiency payment rate is the difference between
the loan rate and the repayment rate.

Data Quality and Consistency. Determine the
overall quality of the administrative series by:
reviewing the nonresponse rate for impact
on both the overall level and the change in
level between reporting periods,
examining year-to-year procedures to verify consistency of the data over time, and
identifying and documenting quality control procedures.

State directors and Statistics Division
branch chiefs have the responsibility for ensuring
that the above factors are used to the extent possible to evaluate and document all external surveys
and administrative data used in the preparation or
review of official estimates. Documentation of
national or multi-state data will be prepared by the
appropriate Headquarters branch and then placed
in the estimation manual where it will be available
to all State Field Offices (FOs). Documentation of
data used in individual States will be prepared and
maintained by the FO. Similarly, a State field office‟s reasons for not using data provided by
Headquarters should be documented in the FO.

Edit, Analysis, and Estimation
USDA‟s National Agricultural Statistics
Service (NASS) estimates monthly prices received
for about 60 major crop and livestock commodities
and market year average prices for an additional
35 items. Market year average prices are made for
States where sample surveys or administrative data
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do not allow monthly estimates because of limited
marketings.

The concept used to estimate prices received by producers is a price if multiplied by the
total quantity of a commodity sold would give the
total amount received by all producers for that
commodity. The estimated price reflects prices
received by producers for all classes and grades of
the commodity being sold, including quality premiums or discounts. Estimates generally relate to
prices producers receive for their products at the
point of first sale, usually a local market, or the
point to which producers deliver their products.

One of the primary uses of the price data
is to value commodities marketed and develop
estimates of income to agriculture, which are part
of the national income accounts. For the result of
multiplying quantity sold by price to be meaningful in terms of cash receipts, the price must represent the average of all grades of the commodity
sold.

The various series of prices received by
producers include monthly prices for most major
agricultural commodities, market year average
prices for all commodities having production estimates, prices by utilization for milk, fruits, and
vegetables, and prices by States for most commodities and by specific area for a few commodities.

Equivalent returns are when adjustments
are made in actual prices to shift to a point of sale
different from the reported one. An example is
free on board (FOB) shipping point to packinghouse door. Equivalent returns by location in the
marketing channel for citrus fruit, and December 1
or January 1 inventory values for livestock and
poultry.
2-18

State preliminary month (mid-month)
prices are weighted by historic average marketings
by month to determine the U.S. preliminary prices.
For commodities that have multiple types (classes), such as hay, sunflowers, and wheat, historic
average marketings by type (class) are used as
weights. An “All” price is calculated for these
commodities using historic average marketings.

Estimates of prices for major crops are
based on data from probability sample surveys of
firms that purchase directly from producers. Prices
for commodities such as fruits, vegetables, and
livestock come primarily from market check data
or producer and buyer reports. See Table 2.14 for
a summary of estimates by selected commodities.

Monthly Prices. Preliminary month (mid-month)
price estimates reflect prices based on data reported for the first 2 weeks of the month or at the middle of the month, generally the 13th through the
17th. Preliminary month prices are subject to revision the following month when data for the entire
month becomes available. Entire month prices represent a weighted price based on associated reported marketings or purchases.
Reported “average” prices may not reflect
the actual proportion of sales by various end uses
and method of sale. Available price and quantity
data by utilization are used to weight the price for
each method of sale or utilization by the appropriate quantity sold.

Market Year Average Prices. Commodities include varying months in their market year. See
Tables 9 through 13 for the months in the commodity market year. Only a market average price
is estimated for States where monthly marketings
are not adequate to obtain reliable prices using
sample surveys. For commodities having only
USDA, National Agricultural Statistics Service

MYA prices, no monthly prices are estimated. The
U.S. prices for those commodities are determined
by weighting each State‟s price by its production.
In other words, the sum of the value of production
for each State divided by the U.S. production
yields the U.S. MYA price. The weighted product
of prices and monthly marketings represent market
year average prices. For poultry, eggs, and hogs
the 12 month marketing year begins with December. The calendar year provides the 12 month
marketing year for other livestock species and
products.

Sales during the marketing season weight
monthly prices to derive at the market year average price for crops. For a given crop the market
season for a State is the 12 month period beginning in the month in which harvest is usually actively underway. See tables 9 through 13 for crop
market years.

In some years, the Government acquires
ownership of agricultural commodities under price
support or income programs. Market year prices
include an allowance for the value of the quantities
acquired by the Government, but monthly prices
are not adjusted to include this allowance. For
some commodities, the Government makes supplemental payments on all or a part of the actual
production, or potential production. These payments, such as deficiency payments for grain, are
not included in monthly or market year average
prices. The payments are shown under “Government payments” for farm income calculations.

U.S. Prices. The U.S. monthly and annual prices
for all commodities are derived from weighting
State prices by their respective sales. Estimates of
quantities sold in each State during the month provide the weights for computing the monthly prices.
The quantities sold changes each month, especially for crops which have seasonal marketing patterns. The relative weight for each State in the
computation of the U.S. price varies from month
to month. Price level differences and shifts in
weights between States may change the U.S. price
more or less than the sum of changes for individual States. Other factors influencing changes in the
U.S. price include commodity quality, shifts in
utilization, change in type of commodity marketed, relative importance of old and new crops, and
importance of contract deliveries.

Price Revisions. Published prices are subject to
annual revision if additional data become available. Revisions of monthly prices get published at
scheduled times. The December issue of Agricultural Prices contains this schedule in the index of
special features. Monthly price revisions generally
occur during the setting of market year average
prices. Livestock and poultry market year average
prices get set after the market year is complete.
Preliminary market year average prices get published prior to the end of the market year for most
crops. Except for cotton, preliminary market year
average prices are based on monthly prices to date
with an estimate for the remainder of the season.
Forecasting of cotton prices is prohibited by law.

The monthly prices or other indications
for the entire year are included in the averages
when the market year is over. End of season average prices are subject to further revision the following year or in the five year review. In this review very few prices get revised. Revisions, however, in the production, sales, or utilization estimates do occur. These revisions result in changes
USDA, National Agricultural Statistics Service

2-19

in the U.S. prices. Estimates become final with no
further revision following the five year revision
review.

Methods of Computation, Summarization, and
Estimation. NASS uses both probability and nonprobability surveys, each of which has its advantages. A textbook definition of a probability
survey is that every element in the population has
a chance of being selected. A population is a welldefined collection of all the items to be surveyed.
In the population of all licensed grain elevators in
a State, each elevator is an element of the population. The target population tries to be specific
about who belongs to the population, and "licensed" achieves that for the population of grain
elevators. For separate surveys of catfish producers and rice farmers, a grower who raises and sells
both belongs to two populations.

In a probability survey, each operation
must have a chance of selection. When data are
obtained from every operation the result is a census of the population. In other words, for a census
every operation in the population is in the survey.
For a probability sample, every operation in the
population has a chance to be in the survey. The
probability survey will estimate the same farm
characteristics as the census but will only survey a
subset of the population chosen by chance.

With only a subset of the population chosen for a probability survey, each interview is vital
because many other elements of the population are
represented by that one interview. The sample
weights are used to expand the individual responses up to an estimate for the entire population. A
sample weight of 293 means that one respondent
in the probability survey represents 293 operations
in the population.
2-20

A non-probability survey is any survey
which does not conform to the definition of a
probability survey. For example, NASS usually
tries to pretest new procedures before their adoption into the operational program. Rather than use
a random sample for the pretest, NASS will often
use a preselected set of producers in a few specified States because these interviews are likely to
expose as many potential problems as possible in
the proposed procedures. NASS uses nonprobability surveys for needs such as crop weather, monthly dairy, off-farm grain stocks, cattle on
feed, crop yield, and many commodity price surveys.

If it is reported there are 4.7 million acres
of corn for grain, how much confidence is there in
that estimate? A unique feature of an estimate
from a probability survey is that a measure of the
precision for the estimate is available. In other
words, a measure of how much the estimate might
"deviate" because a sample was used rather than a
census.

The precision of probability estimates is
measured by the standard error. The major indication from a probability survey is usually the direct
expansion of the data reported by each respondent.
Although NASS usually incorporates several indications before releasing an estimate, a direct expansion could be published as an estimate. Data
users could then draw their own conclusions in
comparisons with previous indications.

The indication from a non-probability survey is usually judged in relation to a previous
month's or year's indication before an estimate is
published. The indication is not expected to stand
alone but instead to show the change that has occurred. Thus, there is a great reliance on seasonal
cycles or changes from a base period. An example
USDA, National Agricultural Statistics Service

is the Monthly Dairy Survey where producers who
return the January questionnaire become the group
which is tracked from month-to-month during the
year. Thus, non-probability surveys rely heavily
on being able to model the relationships from onetime period to another. The probability surveys
tend to rely on direct expansions while nonprobability surveys tend to rely on ratios or percent changes.

The objective of any survey is to provide
information on the characteristics of the population by examining a subset of the population. By
analyzing the data from that subset, called a sample, estimates of population parameters such as
means, totals, and ratios are determined. The goal
of estimation is to analyze the characteristics of
the population while recognizing sample limitations.

A complex set of procedures is used to ensure that each operation is defined to avoid duplicate reporting. Probability surveys usually require
stringent follow-up procedures for producers who
do not respond. An effort is made to convert refusals to meet Office of Management and Budget
(OMB) standard of 80 percent response rate.

Sample surveys have two primary limiting
factors, sampling error and non-sampling error.
Sampling error is controlled by the sample design,
especially the sample size. Non-sampling error
causes a sample to misrepresent the true characteristics of the population. The sum of the sampling
error and the non-sampling error defines the total
error associated with a particular sample. This total error limits how much useful information can
be obtained from the sample about the population.

Non-probability surveys may be difficult
and complex also, but they do not have to obey the
requirements of a probability survey. Sometimes
there is little or no follow-up required, and the
survey process might be complete as soon as the
questionnaires are received. Other times stringent
follow-up procedures are required. It is more a
subjective decision of how much effort NASS
places on the survey. Probability surveys, however, are always required to have fairly stringent follow-up.

Probability surveys demand that procedures are followed exactly from statistician to statistician and from State to State. The surveys that
NASS conducts nationwide tend to be probability
surveys. NASS strives to ensure the same procedures are used in all States and Regional centers.
In contrast, a non-probability survey may or may
not have strict consistency requirements. NASS
places strict demands on non-probability surveys.

USDA, National Agricultural Statistics Service

The estimation process has two components, the estimator and the indication. The estimator is derived from the sample data using formulas. In other words, the formula(s) is the estimator and the actual number produced from the
sample data is the estimate. NASS has created a
variation on this terminology by using indication
to refer to the number produced from the data and
letting estimate refer only to the Board estimate,
the official number that is set after reviewing all
indications.

There are two types of indications in general use, point indications and interval indications.
A point indication is a single value calculated from
the sample data. An interval indication has two
values to provide upper and lower bounds on the
population parameter. A confidence interval is an
example of an interval indication. NASS uses
point indications. Whenever coefficients of variations (CVs) are utilized, the indication is edging
2-21

toward the interval concept rather than the point
concept.

The sample design can yield several estimators. Different estimators may be a better fit in
certain situations. The Board process is a tool used
by NASS to evaluate multiple indications along
with available administrative data to produce an
official estimate. The Board process considers the
relative strengths and weaknesses of each indication.

State indications from survey and administrative data collected provide the framework for
State recommended price estimates. The State‟s
recommended estimates generally follow the average reported prices. If there is conclusive evidence
that the sample is biased or incomplete, the State
field office can make an adjustment to the indicated price estimates. In such cases, explanations for
any adjustments are submitted to Headquarters
along with data indications, administrative data,
and recommended price estimates.

Commodity price estimates at the State
and U.S. level are produced using NASS developed analytical and estimation tools. These tools
provide a standard basis for establishing State and
U.S. prices. The NASS developed tools for data
handling, analysis, and generating State and National estimates. The tools populate commodity
databases with survey and administrative data,
provide a standardized framework for reviewing,
analyzing, and establishing estimates. The tools
also provide trend chart analysis, estimate validation, estimate tracking, and supportive comments
for the estimation process.

In setting U.S. prices, analysis of State
recommended prices and U.S. level indications
2-22

provide the framework for establishing a U.S.
commodity prices. Some State recommended prices require adjustment in order for the State prices
to weight to the national price level. The tool provides for a State rebuttal process of National
Board changes to State recommended prices. The
commodity operational data base maintains an
official record of State submitted recommendations and Board estimates.

Livestock and Livestock Products. Livestock estimates refer to cattle, milk cows, hogs, sheep,
wool, and mohair. Estimates of prices received for
meat animals refer to cattle, hogs, sheep, and
lambs sold within a State. Registered or purebred
breeding stock, and diseased or crippled animals
are excluded. The source of data for meat animal
prices includes data compiled by USDA‟s Agricultural Marketing Service.

Each month cattle and pig data are obtained from the Agricultural Marketing Service
(AMS). AMS collects livestock data required by
the Livestock Mandatory Reporting Rule Act of
1999 (The Act) as an amendment to the Agricultural Marketing Act of 1946. Livestock data covered under The Act are comprised of cattle, swine,
and lambs. Cattle include cows, steers, heifers, and
calves. Swine include hogs, barrows, gilts, and
sows. Lambs include only lambs. The Act mandates the Secretary of Agriculture to produce national reports pertaining to the marketing of cattle,
swine, and lambs.

Under The Act, certain livestock packers,
processors, and importers, specifically those organizations meeting or exceeding volume thresholds established for each type of livestock, are required to report on a daily and weekly basis. The
Act also establishes the format and content for the
information to be reported. To comply with The
USDA, National Agricultural Statistics Service

Act, AMS developed the Livestock Mandatory
Price Reporting (LMPR) system. The LMPR provides timely, accurate, and reliable market information. Information about The Act is at http
//www.ers.usda.gov/Data/meatscanner/Livestock
MandatoryReportingAct.pdf .

USDA requires federally inspected processing facilities to comply with the LMPR reporting schedule if average annual slaughter over the
preceding 5 years reached 125,000 head of cattle,
100,000 head of hogs, or 75,000 head of lambs.
Any processing plant or person engaged in the
business of purchasing livestock for purposes of
slaughter must report to the AMS when purchases
exceed any of these annual limits. The LMPR system requires cattle packers to report specific price
and quantity information twice daily. Hog packers
must report three times per day. Lamb processors
must report once daily. All livestock packers supply a weekly summary.

AMS collects livestock data on a voluntarily basis from facilities that are not required to report to the LMPR. The livestock data collected on
a voluntarily basis include cattle, swine, and lambs
as well as sheep and goats. The voluntarily collection includes quality of the meat, weight, and
number of head.

AMS field office staff prepares electronic
reports of agricultural market news activities. The
AMS market news employee or reporter maintains
a list of industry and trade contact information
including names and telephone numbers. At the
market locations, like auction markets, the reporters observe enough sales of each class to obtain a
complete cross section of the trading. The reporters do not report strictly by tabulating observed
sales. Reporters interview as many trade members,
producers, distributors, and others as possible, beUSDA, National Agricultural Statistics Service

fore, during, and after trading. The information
gathered includes facility locations, demand, supply, movement of commodities, prices, number of
livestock, and situations that would affect supply
or prices such as weather conditions, insect damage, transportation problems, etc. Other information collected includes time of trade, discounts
or premiums, volume, date of delivery, and
weight. Demand may be described as “very good,”
“good,” “moderate,” “light,” or “very light,” in
relation to normal demand at each market. Terms
for supply are “light,” “moderate,” and “heavy.”
The reporters combine information obtained from
the trade with the data derived from sales observed. Livestock that are “passed out,” “bid in,”
or “buy back” at the auction are not used in the
reports. Individual head sales that are more than
$1 above or below the bulk of sales are not reported. Weighted average programs are used for feeder
and slaughter sections.

Prices received for milk cows includes
only cows sold by producers for dairy herd replacements. Milk cow replacement prices are
estimated on a quarterly basis in January,
April, July, and October in the twenty largest
milk producing States. All 50 States estimate a
market year average (calendar) price in January. Annual wool and mohair prices represent
yearly producer sales.

Quarterly milk cow replacement price
estimates are set using four indications:
Ratio to Base;
Direct Expansion;
Ratio to Previous Quarter; and
Unexpanded Average.

The January sample size is increased to
provide sound base period estimates and future
2-23

ratio to base indications for the smaller samples
used in the other three quarters. The four previous
quarter milk cow replacement price estimates are
reviewed and revised in January each year. New or
additional data support any needed revisions.

weighting the monthly fluid and manufacturing
grade prices by the monthly percent fluid grade or
percent manufacturing grade. The MYA all milk
price for each State is weighted by the all milk
monthly marketing percentages.

Administrative data used for estimating
livestock specie and product prices must be consistent and meet definitional requirements. Meat
animal prices are rounded to the nearest dime for
prices less $100 per cwt and to the nearest dollar
when equal to or greater than $100 per cwt. Milk
cow prices below $1,000 per head are rounded to
the nearest five dollars and to the nearest 10 dollars when $1,000 or greater per head. Wool and
mohair prices are rounded to the nearest penny.

Poultry and Specialty Commodities. Poultry
estimates refer to eggs, broilers, and turkeys.
The source for poultry prices includes data
compiled by USDA‟s Agricultural Marketing
Service. See the Use of Adminstrative Data
section for details.

Estimates for hogs and cattle require classes of prices along with weights to derive a total
price for each month and preliminary month estimates. Monthly meat animal prices for the past
two calendar years are reviewed and revised if any
additional or new data supports the price revision.

The weighted average price received for
fluid or manufacturing grade milk sold during the
calendar year is the MYA price. The U.S. MYA
price is calculated by weighting each State‟s MYA
price by the total pounds of milk marketed from
each State. At the State level, each month‟s fluid
or manufacturing grade price is weighted by the
monthly marketing percents for each grade. The
pounds of milk purchased from milk producers by
milk processors in each month divided by the total
pounds purchased from milk producers during the
year provides an indication of the monthly marketing percentages. For each month, the percent fluid
grade and percent manufacturing grade are estimated based on the quantity of each grade purchased by milk handlers and processors. For each
State, the monthly all milk price is calculated by
2-24

The honey MYA price is a weighted
average based on actual reported sales of honey. At the U.S. level, prices are published by
class and marketing channel. At the state level,
an all price is estimated. Table 2.5 shows the
classes.

The U.S. mink MYA prices is a weighted
average based on actual mink pelt sales from major auction houses. At the State level, an average
price is estimated. Prices are collected at the first
point of sale before marketing costs are deducted.

The catfish and trout Market Year Average prices are weighted averages based on actual
reported fish sales. U.S. and state level prices are
published by size category. Table 2.7 shows the
size categories.

Field Crops. State monthly Prices Received estimates originate in the State Field Offices (FO)
except for tobacco. No monthly commodity price
estimate is made when sales account for less than
0.5 percent of total market year sales.
USDA, National Agricultural Statistics Service

Prices producers receive for ten grain and
oilseed crops (canola, corn, soybeans, oats, barley,
flaxseed, wheat, grain sorghum, and sunflowers)
are estimated using a weighted average from a
monthly probability sample of more than 1,900
mills, elevators, and other buyers that purchase
grain from producers in 35 States. States surveyed
account for 90 percent of U.S. sales for each
commodity. The probability grain price surveys
began in 1977.

The mid-month weighted price is the
weighted average price of all reports that
contain a mid-month price. The calculation of the mid-month weighted price is
calculated differently than the full month
weighted price. A straight average of the
reported mid-month price is first calculated at the stratum level and then weighted
by the full month expanded quantity to derive a State mid-month price indication.

From the Grain Prices Received survey,
the indications are:

Prices are for “open market sales” at first
point of sale and do not include adjustments for
CCC loans or government payments. These prices
provide the basic component of market year average prices. The prices represent crops moving into
the commercial channels for feed, food, and fuel.
Crops purchased for resale as seed are excluded.

The full month expanded quantity is the
total indicated amount of the commodity
sold by farmers during the previous
month. This indication is calculated by
taking the reported quantity purchased for
each reporting operation (buyer, elevator,
etc.) and multiplying it by the expansion
factor for the stratum and summarizing at
the stratum and State level.

The full month expanded dollars are the
total indicated amount of dollars paid to
farmers during the previous month. The
expanded dollars are calculated by taking
the reported dollars paid by each operation
and multiplying by the stratum expansion
factor for the operation. This data are
summarized at the stratum and State level
and used to calculate the full month price.

The full month price is the weighted average price for a commodity for the previous
month. The weighted average price is calculated by dividing the full month expanded dollars by the full month expanded
quantity (unit value).
USDA, National Agricultural Statistics Service

In February of each year, annual market
year average prices and value of production for
field crops estimates are published. The value of
production is the product of the market year average price and its corresponding production. For
crops having an “all” category such as hay and
sunflowers, the “all” value of production will not
equal the product of the “all” market year price
and the “all” production for States that are in the
monthly price program for those crops. The “all”
value of production for these crops will equal the
sum of the values of production by type.

Cotton. The probability cotton price survey, initiated in 1974 to provide more reliable data, gathers
information on monthly marketings and ensures
that all types of sales (including contract sales) are
represented.

2-25

The universe of about 800 cotton buyers is
updated annually and is used to develop a stratified random sample of buyers in major cottonproducing States. Bales reported on the sample
survey normally account for more than half of the
cotton production. Each month, a questionnaire is
mailed to sampled cotton buyers. Nonrespondents
are contacted by telephone or personally enumerated. The questionnaire asks for bales purchased
and dollars paid for the first 2 weeks of the current
month and bales for the previous month. Procedures for computing State and U.S. monthly prices
and later revisions are similar to the grain and
livestock surveys.

Hay. Estimates of prices received for hay are
based on sales of baled hay on a per ton basis.
Weights, however, are based on total sales which
include baled hay, stacked hay, or loose hay, all of
which are included in hay production estimates.
Hay production consists of cured grasses, small
grains, and legumes. Hay must be fully cured before utilization. Crops that are not fully cured and
thus not included in production or sales include
silage, green chop, and haylage. Alfalfa or other
forage crops sold standing in the field, pelleted, or
other forms are not included as hay, either for
prices or sales. Sales of baled hay include all sizes
of bales. Estimates submitted include (1) alfalfa
and alfalfa mixtures, (2) other hay, and (3) all hay,
as appropriate depending upon hay production
estimates in each State. The "all" hay price is a
weighted average of alfalfa and other hay estimates of price per ton, if the State has both types.
Otherwise, the "all" hay price represents the alfalfa
or other hay price, respectively. Every other year,
the biennial survey of farmers will furnish data on
monthly hay sales (weights) for revision purposes
and computation of market year average prices.
Monthly hay sales percentages are carried forward
for the year not surveyed.

2-26

Estimates for the current month prices are
considered a mid-month price. The estimates are
based on sales by producers around the middle of
the month or during the first half of the month and
currently vary by State. Indications are derived
from surveys of dealers, hay auctions, and other
buyers or other commodity survey lists such as
dairies or cattle feeders. Data sources in a given
State will depend upon the importance of the marketing channel(s) in that State, availability of universe lists, and the need for more than one survey.
States with very few hay dealers, for example, depend more heavily on surveys of those who purchase hay such as dairies or feedlots and the biennial survey to provide data on the proportions of
alfalfa and other hay sold.

Administrative data, if available, may be
used to derive a estimator. Administrative data,
where quantities as well as prices are available for
actual sales by producers, may be the sole indicator providing geographic coverage is adequate.
Estimators are reviewed with particular attention
to circumstances affecting changes in supply and
demand and the relationship between alfalfa and
other hay price levels. Administrative data used in
estimators should be closely related to prices received by producers. These sources vary from
State to State based on marketing channels commonly used.

Estimates of the percent of all hay marketed that is alfalfa hay and the percent of all hay
marketed that is other hay are used to weight the
component prices to the all hay price. Data available from the biennial survey allows weights to be
based on sales rather than production.

USDA, National Agricultural Statistics Service

Tobacco. Tobacco price estimates are set annually.
Data are collected from growers in the Program
States to set a U.S. MYA price. The estimation
and publication program for tobacco prices received by farmers includes prices for each tobacco
type, class, and all tobacco by State and U.S.
There are no U.S. or State prices for tobacco published on a monthly basis. See Table 2.1 for the
States and see Table 2.9 for the months in the
market year of the tobacco program.

Preliminary market year average prices for
the current year's crop include types grown in each
State. When sales data are less than two percent of
production, the average price estimated for the
previous year's crop is used to compute value of
production.

The tobacco buyout in 2005 eliminated the
need for MNS auction and contract sales price data. MYA prices are based on a survey of growers,
leaf dealers, tobacco companies, and other industry sources. Price and quantity weights are used
from these sources in establishing tobacco prices.

Fruit and Nuts. Producers of fruits, tree nuts, and
vegetables are usually concentrated in small, often
scattered, production areas, and the number of
marketing channels is limited. Price and quantity
information is obtained from growers, marketing
points, and processors.

ownership at processing plants. Prices are also
estimated for major uses, such as canning, drying,
freezing, and crushing.

Reported average prices may not reflect
the actual proportion of sales by the various end
uses and method-of-sale categories. Thus, when
price and quantity data by use are available, average prices for all sales are derived by weighting
the price for each method of sale by the appropriate quantities sold.

For fruit, adjustments are made in prices
to shift to a point of sale other than that at which
the sale occurred (such as "f.o.b. (free on board)
shipping point" or "packinghouse door"). These
estimates are called equivalent per unit returns to
growers and are usually calculated for two points
of sale. Equivalent "packinghouse door" returns
refer to the price for all fruit, regardless of method
of sale, converted to a price at the packinghouse
door. Equivalent "on-tree" returns refer to the
price for all fruit, converted to a price that would
be received if the fruit were sold on the tree. States
converting to equivalent returns contact growers,
handlers, and shippers to determine harvesting and
marketing costs. In some cases, industry cost studies may be used. Based on historic data, conversion factors are established for calculating equivalent returns for the next marketing season. Use of
more than one pricing point is determined by industry request and the need for parity computations for use in the administration of Federal marketing orders.

In States where fruits, tree nuts, and vegetables are of major importance, prices are obtained
separately for fresh market and processing sales,
except for citrus fruits. Average prices of deciduous fruits sold for processing usually apply to bulk
fruit delivered to processing plants. Most deciduous fruit sold by growers for processing changes
USDA, National Agricultural Statistics Service

2-27

Citrus Fruits. The fruit crops in the monthly and
MYA price programs are grapefruits, lemons, oranges, tangelos, and tangerines. The table below
shows the monthly price estimating States for each
commodity.
Commodity

STATE

AZ
CA
FL
TX
Grapefruit (all)
X
X
X
Grapefruit, white
X
Grapefruit, colored
X
Lemons
X
X
Oranges (all)
X
X
X
Oranges, Valencia
X
X
X
Oranges1,
X
X
X
Tangelos
X
Tangerines
X
X
X
__________________________________________________
x= monthly price estimating State
1
early, mid-season, Navel, and miscellaneous

Citrus fruit prices are set for the current
month and are subject to revision at the end of the
growing season and again at the end of the next
growing season. Estimates and comments that
document analysis perspective along with any
supporting survey indications and administrative
data used to track citrus fruit prices are entered
into the citrus fruit analytical data base using
NASS developed tools.

The analytical and estimation tools show
relationships between survey indications and

Commodity
Apples
Grapes
Peaches
Pears

CA
X
X
X
X

GA

X

MI
X

NJ

NY
X

board estimates. Seasonal price fluctuation and
quantity marketed throughout the growing season
are analyzed through the tool. Trend charts provide a useful review tool for analyzing survey
prices. These charts show deviations from trends
as the result of economic and weather related situations and help to determine validity of fluctuating
prices.

Complete documentation is provided for
every citrus fruit revision or preliminary estimate.
Documentation comments are specific and include
as many details as necessary to support the estimates.

Noncitrus Fruit and Tree Nuts. The fruit crops
under the MYA price program are apples, apricots,
avocados, bananas, blackberries (Evergreen, Marion, and other), blueberries, boysenberries, cherries (tart and sweet), cranberries, dates, figs,
grapes, guavas, kiwifruit, loganberries, nectarines,
olives, papayas, peaches, pears (Bartlett, all and
other), , prunes and plums, and raspberries (black,
red, and all).
The following shows the monthly price estimating States for each commodity.

OH
X

STATE
OR
PA
X

SC

X

X

X
X

VA
X

WA
X
X
X

x = monthly price estimating State

2-28

USDA, National Agricultural Statistics Service

Noncitrus fruit prices are set for the current month and are subject to revision at the end of
the growing season. Estimates and comments documenting the analysis perspective along with any
supporting survey indications and administrative
data used to track noncitrus fruit prices are entered
into the citrus fruit analytical data base using
NASS developed tools.

Complete documentation is provided for
every noncitrus fruit revision or preliminary estimate. Documentation comments are specific and
include as many details as necessary to support the
estimates.

Tree Nuts. The tree nut crops in the MYA price
program are almonds, hazelnuts, macadamia nuts,
pecans, pistachios, and walnuts.

MYA price estimates are set along with
acreage and production for publication in the January Noncitrus Fruits and Nuts, Preliminary
Summary and the July Noncitrus Fruits and Nuts,
Summary. MYA prices are first estimated for January following the year of harvest. The Walnut
MYA price is first estimated for July following the
year of harvest. Pecan prices are required for improved, native and seedling, and all pecans. All
price estimates are subject to revision whenever
production revisions are made. California uses
handler surveys to estimate almond prices while
pistachio and walnut prices are derived from
grower surveys. The Federal Marketing Orders for
these crops provide administrative data for production only; no price data are collected by the Market Order Administrators.

Commercial Vegetables. Market News Service
(MNS) FOB prices are used to set monthly prices.
Occasionally, the point of first sale for commodiUSDA, National Agricultural Statistics Service

ties is not at the FOB level. In these situations,
prices are adjusted for costs to arrive at the point
of first sale. During the analysis and estimation
process, the NASS price reflects the point of first
sale price of all grades, sizes, and varieties being
sold that month. Fresh market prices can fluctuate
widely in a short time period. Price fluctuations
generally result from unusual supply situations
such as beginning or end of season shortages,
weather induced shortages, or over-supply from
large crops.

Unusually high or low price quotes during
normal supply/demand periods are verified with
the source. These high or low price quotes are
generally associated with a very small quantity of
unusually high or low quality produce or with a
special class or variety. These prices are weighted
to the total marketings the price represents. The
average price is one which represents all grades
and qualities sold.

Price estimates are weighted averages.
Price and quantity are gathered by survey or from
MNS. MNS publishes daily “mostly” price quotes
and shipment totals for a number of markets. The
"mostly" range contains the prices where most
produce is being sold. The midpoint of the daily
price range is weighted with the daily shipment
data to calculate first half and full month FOB
prices. When the point of first sale price is not at
the FOB level, adjustments to the weighted FOB
price are made. In the complete absence of
weighted data, straight averages are calculated
from quoted prices or from the midpoint of quoted
price ranges. The "mostly" price ranges and price
quotes for the container sizes most commonly
used in the market are selected. Analysts must be
knowledgeable of the commodity market and exercise good judgment when analyzing available
indications to set a price.

2-29

Market Year Prices. Comprehensive administrative data and/or an end of year survey provide the indications for establishing MYA
prices for commercial vegetables. Compilation
and summarization of MYA price data are
completed in FO‟s developed systems.

States with crops in the monthly price
program submit monthly prices with monthly
weights. The monthly weights must add to 100
percent and the weighted average of the
monthly prices must equal the MYA fresh
price.

Example: The in season monthly FOB prices
were obtained from MNS and adjusted to arrive at an in season point of first sale price and
submitted to HQ for the monthly Prices Received program. At the end of the season
monthly weights were calculated using MNS
shipment data. New end of season data were
obtained showing the end of season MYA to
be $34.70 per cwt. Since monthly prices are
required to be submitted to HQ for States in
the monthly price programs, new monthly
prices need to be calculated to arrive at the
$34.70 per cwt price. The procedures for arriving at new monthly prices are:
Obtain a weighted average price by multiplying the in-season monthly prices by the
appropriate monthly MNS weight. In this
example, the monthly in-season weighted
average price is $36.90 per cwt.
Next, take the ratio between the end of
season MYA and the in-season weighted
average price $34.70/ $36.90 *100 = 94%.
Next, multiply this percentage (.94 for this
example) by each in-season monthly price
to arrive at the final End of Season Monthly Prices.
Then, calculate the weighted average of
the final End of Season Monthly Prices to
make certain it calculates to the end of
season MYA price ($34.70).

End of Season Monthly Prices. The following
example shows how the end of year monthly
prices and weights are determined. In this example, more than 2 percent of the fresh market
tomato crop in State A was marketed during
July, August, September and October. The in
season prices represent point of first sale level
prices that were arrived at by adjusting FOB
prices obtained from MNS. The end of year
weights are also obtained from MNS shipments data accumulated throughout the marketing year and summarized at the end of the
year. When applying weights to each month,
the monthly weights (percents) must add to
100. The MYA price was obtained from end
Ex.: For Fresh Market Tomatoes when new end-ofof season surveys or other data only available
season prices are available at the end of the year.
at the end of the year. An end of season survey
is useful in collecting prices which become
In-Season
MNS Weights Final Monthly
1
Monthly
Prices
By Month (%)
Prices1
known only at the season‟s end. Contract pric37.50
10
35.30
es are not know until the end of the season. So July
August 35.00
47
32.90
in many cases the in season monthly prices Sept.
38.40
35
36.10
will have to be adjusted to arrive at the end of October 40.80
8
38.40
1
dollars per cwt
season MYA price. End of year surveys are
conducted in States where the point of first
In-season MYA price is $36.90.
sale for significant amounts of production is
MYA price is $34.70
something other than the FOB.
Ratio = $34.70 / $36.90 or (94 %)

2-30

USDA, National Agricultural Statistics Service

Revisions of monthly and MYA prices
for fresh market vegetables are submitted annually in December via NASS developed
analysis and estimation tools.

Submission of Estimates

Monthly Prices. States submit price estimates for
commodities in the monthly fresh vegetable price
program, a preliminary month (mid-month) price
for the current month and a full month price for
the previous month for each month with sufficient
crop marketings. No estimate is submitted when
marketing represent less than 2 percent of the current year‟s production. At the beginning of a marketing season, FOs submit a preliminary current
mid-month price only. At the end of a season, FOs
submit a full month price for the previous month.
States submit monthly prices for fresh market vegetables using standard NASS developed tools.
States enter and submit indications, Administrative
data, and estimates for the previous full Month and
for the current mid Month. States are allowed to
view and enter data for the commodities and the
months within the marketing season only.

MYA Prices. States submit MYA prices to Headquarters for fresh market vegetable using standard
NASS developed tools for Annual Vegetable
Submission. MYA prices are submitted for each
State and for each vegetable commodity in the
National Vegetable Estimation Program.

Agricultural Statistics Board Review

A Board review happens the day before
the Agricultural Prices report is issued. The Board
members include the Agricultural Statistics Board
Chairperson, Statistics Division Director, Crops
Branch Chief, Livestock Branch Chief, Environmental, Economics, and Demographics Branch
Chief, and the Economics Section Head.

Revisions

Price revisions are made to provide data
users with the best possible estimates. These revisions are based on additional information such as
late or corrected survey data (late reports); data
from assessments, FSA data, or commodity check
data from producer associations. All estimates are
subject to further review at five–year intervals
which coincides with the Census of Agriculture.
The estimates following the five–year Census of
Agriculture are final.

Analytic and Program Relationships. In using
prices received by producers to compute receipts
from sales, the monthly or season average price is
multiplied by the estimated quantities sold. Estimates of receipts from other sources are added to
this total to compute gross farm income which is
part of the gross national product.

Data on prices received by producers have
a close relationship to the various national programs of price and income support to American
producers that have been developed over the last
several decades. Some of these Federal programs
operate directly through the price mechanism and
reflect their effect through enhanced prices for
USDA, National Agricultural Statistics Service

2-31

farm products. To the extent that a program affects
the price that a producer receives when products
are sold, it is reflected in the series on prices received by producers.

This is the situation, in the case of marketing agreement programs, which, by exerting controls over marketing, result in enhanced prices. It
is, to a degree, the case for commodities affected
by loan-purchase agreements. To the extent that
producers can place their products under loan
(with storage) they are relieved of the pressure to
sell below the loan level, with a consequent buoyant effect on price. At the end of the marketing
year, producers who wish to forfeit their collateral,
and thus in effect sell to the Government, may do
so. The prices received by producers for such sales
are averaged with the open market prices that were
reported throughout the year.

Most of the programs by which farm income is enhanced do not operate to affect prices of
farm products. The non-price-influencing effects
are not reflected in prices received by producers,
nor are adjustments made in the price series to accomplish such a result. Their effects are included
as supplements to income and reflected in the income series published by the Department. This set
of programs includes conservation payments, wool
incentive payments, direct, counter-cyclical, Average Crop Revenue Election (ACRE), loan deficiency payments (LDP), and several other similar
programs.

Limitations of Series

Most Prices Received data are collected
by means of a mailed questionnaire. Because of
the characteristic nonrandom nature of mail survey
data, no precise estimates of standard errors and
2-32

therefore no statement about statistical precision
can be made. However, the mail questionnaire
technique and related procedures have worked
reasonably well on the whole and have provided
estimates of prices received for most commodities
consistent with the known facts. Although there
are several inherent weaknesses in such procedures, resource limitations have resulted in continuing mail survey data collection activities.

A large number of t-tests were made in
connection with price research projects in North
Carolina, Ohio, and Colorado to determine whether the prices collected by mail questionnaires differed significantly from those collected by enumeration. Results of these tests showed that the
number of differences was somewhat greater than
would have been expected if the null hypothesis of
no difference were true, but not to the extent that
serious doubt could be raised concerning the validity of mail survey data. (USDA, 1970)

One basic weakness of mail questionnaires in non-probability samples is that they do
not provide the basis for a determination of the
precision of the estimates. Response errors can
bias the reported price. Reporters may misinterpret
the question or may report a price when they do
not have actual knowledge of the price information requested. Reporters may report in a unit
of bushels when the question asks for a unit of
hundredweight. A reported price for a particular
grade, for example No. 2 yellow corn, may be
provided when the request is for average price
covering all grades and qualities being sold. These
cover some examples of nonsampling errors involved in mail surveys. Their effect is difficult to
measure, but judicious editing procedures can often prevent serious errors from occurring as a result of them. Market reports provide useful guides
in editing, as a result of which gross misinterpretations can be eliminated.
USDA, National Agricultural Statistics Service

Perhaps the greatest weaknesses of the
present system are (1) the sampling errors associated with the mail survey procedures, and (2) the
nonsampling errors introduced by use of judgment
estimates rather than transaction data. An ideal
solution would include the following: (a) The design of a sampling plan which would give to every
unit of a commodity sold by producers in the U.S.
an assignable probability of being included in the
sample. The pattern of sales for one commodity is
different from that for every other commodity,
and, moreover, is different each month for a given
commodity. Therefore, an ideal model would necessarily contemplate a different sample design for
each month for each commodity. (b) Tabulation of
prices and quantities sold from sales slips covering
the selected sales. (c) Use of suitable expansion
and weighting factors in summarizing the data. (d)
Completion of the operation by publishing such
prices by States, by regions, and for the U.S. on or
near the last business day of the same month.

In practice, a number of compromises
with the ideal solution are necessary, partly because of the physical impossibility of changing a
sampling design month by month in the time limits
imposed by the work schedule, partly because designing a separate sample for every commodity
would escalate costs to astronomical levels, and
partly because absolutely comprehensive lists of
buyers of all farm commodities are difficult if not
impossible to establish, particularly since not all of
those active in the market one month are active in
all months.

In any practical operating program it is
necessary to design a sample in terms of groups of
generally like items, with probabilities of selection
representing their sum total of business over a year
and for several commodities rather than for each
commodity separately. Because of the competitive
aspects of the price making process in the econoUSDA, National Agricultural Statistics Service

my, it is likely that these compromises cost relatively little in accuracy of reporting.

Other compromises are necessary. Although many businesses cooperate very fully in
price reporting programs, some are reluctant to
disclose finite details of their business to outsiders,
or to the Government except as required by law.
Some decline to permit inspection of sales documents; others decline to give price information;
and others decline to give information on quantities sold. In such cases, either an alternate respondent must be selected, or perhaps an estimate
must be accepted in lieu of documented transactions.

In sampling any complex population, it is
necessary to consider whether an unrestricted random sample would provide the most efficient design. Considering the geographical distribution of
agriculture and the marketing structure within any
general area, there is considerable basis in fact for
the belief that a stratified probability sample, a
cluster sample, or some combination would be
more efficient.

In view of the importance of the State as a
unit of government, in terms of both the economic
importance of State statistics and the administration of a Department program such as price support and marketing agreements, it seems reasonable to consider the State as one useful basis of
stratification. Within States, types of farming may
provide a guide to stratification. Almost certainly,
the various elements in the marketing structure
should be reflected in the strata.

A closely related procedure lies in stratifying questions. Thus, instead of asking for the average price of beef cattle, questionnaires ask for the
2-33

price of cows and steers & heifers. These are the
two major component groups comprising all beef
cattle. Variability within each group is generally
less than the difference between them. Weights
derived from available records of historical marketings, together with analysis of the inventory
balance sheet, are used for combining the price of
cows and the price of steers and heifers into an
average price for all beef cattle.
A method employed to minimize response
errors is the use of specialized mailing lists in
preference to general or all purpose lists. This process has limits, however, since in its ultimate form
it would mean a separate list for nearly every
commodity which increases survey expenses.
Consequently, the practical solution represents a
workable compromise between the extremes. Special questionnaires are used for a number of commodities to reach handlers specializing in them.
Separation of the crop price questionnaires from
the livestock and livestock product questionnaires
is also advantageous.

To the extent that satisfactory weights can
be derived, this process generally results in improvement in the overall average price over that
from an undifferentiated question. Prior to introducing this breakout, respondents normally tended
to over-represent steers and heifers in their reported prices, forgetting that cows comprise a sizeable
proportion of the cattle sold for slaughter.

The only limitations imposed by the concept of average price, sometimes called "unit value," as distinguished from price of a commodity
specified in detail, is the obvious fact already suggested, that neither type of price is a complete substitute for the other. Each has its place. Although
price changes of a closely specified commodity
(barrows and gilts, U.S. No.2 & 3, 200-220
pounds, at Kansas City) will generally be highly
2-34

correlated with an average price (all hogs, Missouri) over almost any substantial time period, the
correspondence between them will not be one-toone. The difference may be either in terms of absolute level or in terms of magnitude of change
from one time to another. Each price serves its
specific purpose and neither serves well the specific uses of the other. (USDA, 1970)

Prices Received Index

One of the major uses of the price received estimates is to calculate price index. The
index of prices received by producers is a measure
of changes in the average price level of the agricultural commodities that producers sell. It
measures this level by averaging into one figure or
index number the changes in prices of major agricultural commodities, so that comparisons in the
price level of these commodities can be made from
month to month and year to year. It is a measure of
the U.S. average price level of this combined
group of commodities relative to the level in a
base period, rather than a measure of the level of
the price of any one commodity or of any restricted group of agricultural commodities sold by any
producer (USDA, 1952).

The index of Prices Received by farmers
provides an estimate of the price change between
two periods. The Prices Received index series are
constructed and calculated monthly for a reference
base of 1990-1992=100. The percentage change of
the index represents the degree of the average agricultural products price changed to the base period. The prices receive index also links back to the
reference base 1910-1914 = 100 by chain index for
the purpose of parity price and parity ratio calculations.

USDA, National Agricultural Statistics Service

NASS applies the index number method
for seasonal adjustment to the Prices Received
indexes (Diewart, 2009). Only seasonal adjusted
indexes are published. It takes the seasonal marketing pattern as monthly share to adjust the index
weight. The monthly pattern was obtained by the
average monthly marketings of each commodity
over the 1988-1992. The seasonal adjustment removes the fluctuation in price or quantity and to
handle some commodities prices not available during part of year. It is also useful to remove the seasonal effects from price index for economic analysis and other purposes (Milton, 1995).

The structural framework for the Prices
Received index contains the following indexes:
Two top level indexes: all farm products
and food commodities;
Two component indexes: all crops and
livestock & products;
Twelve subcomponent indexes: food
grains, food grains, hay, cotton, tobacco,
oilseeds, fruits & nuts, commercial vegetables, potatoes & dry beans, other crops,
meat animals, dairy products, and poultry
& eggs.
The Prices Received index includes a total
of 48 items. The price relatives are constructed
from the U. S. average prices of the 48 items relative to the prices in the base period, 1990-1992 =
100. The price relatives are complied with the
five-year moving average weights to build the
Prices Received index. Then the index is converted to the price index 1910-1914 = 100. See Table
2.15 for the relative weights of the 48 items in
Prices Received index.

NASS publishes the price received indexes on the last working day or next to last working
day of each month. NASS revises the price received indexes back three years or five years to
USDA, National Agricultural Statistics Service

coordinate the revision of commodity prices. The
revised price indexes are then published on NASS
Quick Stats.

History / background

Indexes of Prices Received by Farmers
were first available to the public beginning in
1910. These indexes had their genesis in a set of
computations based on 1909 prices for 10 crops. A
second series was published in 1918 incorporating
livestock prices. The third series of indexes was
published in 1921 based on 31 farm products. The
base period for this series was August 1909-July
1914, and the weights were based on census sales
for 1909 (USDA, 1970).

The Bureau of Agricultural Economics
published a new Prices Received index in 1924.
This index included prices of 30 commodities. In
addition, indexes were computed for each of six
groups into which the 30 commodities were divided. The index used the period August 1909-July
1914 as a base period. The weights were quantities
selected to represent average annual marketings
for the period 1918-1923. The index was of the
fixed-weight aggregative type. At least one reason
for the selection of the weight-base period was to
permit comparisons with the Bureau of Labor Statistics Index of wholesale prices of agricultural
products and of all commodities which, at that
time, were weighted with 1919 quantities.

The Prices Received index was revised in
1934. The principal changes were (1) the use of
improved price series of dairy products and tobacco, (2) the addition of prices of 20 products including a group of truck crops, and (3) a shift in
weights from marketings during the 1918-1923
period to those of the 1924-1929 period. Truck
2-35

crops were introduced into the index in 1924 at the
level of all groups for the period 1924-1929
(Stauber, 1950).
A further major revision in the price received index was published in the January 1944
issue of Agricultural Prices. Price Received Indexes for 12 subgroups were set up and the subgroups were combined into two major groups of
all crops, and livestock and livestock products.
The quantity weights were shifted to marketings
during the five-year period 1935-1939. Several of
the price series were revised and the Prices Received index was extended to cover 48 commodities (USDA, 1970).

The 1950 index revisions put both the indexes of price received and prices paid on the
same base, namely January 1910 - December 1914
= 100. Both indexes used weights representing the
same weighting periods, for the period 1910-1934,
index weights were based on marketings for 19241929, and beginning with January 1935, weights
were based on 1937-1941 marketings. Both indexes were also computed in the same manner, using
a modified aggregative formula (Laspeyres index).
These changes brought the indexes into compliance with the Agricultural Adjustment Act of 1938
as amended by the Agricultural Acts of 1948 and
1949 (USDA, 1970).

Revision of the Prices Received index in
1959 maintained the same general pattern as the
1950 revision. Principal changes were the revision
of weights based on 1953-1957 marketings and
sales; the revision of the price system for vegetables and noncitrus fruit. Major commodities
groups were unchanged, and shifts in commodities
were minor (USDA, 1970).

2-36

The revision in 1976 retained the index
structure and general method used for the 1959
revision. Principal changes were updating of
weights, deleting several specialty commodities,
adding broilers, and linking the new and old index
series as of January, 1965 (USDA, 1970).

The 1995 revision was the most recent index revision. The changes of this revision included: (1) substituting the fixed base-year weights by
the five-year moving average weights to capture
the shift in agricultural commodities produced and
sold; (2) using seasonal marketing monthly adjustment to adjust the five-year moving weights to
reflect the “normal” marketing pattern during the
year for each commodity in the index; (3) taking
weighted 36-month prices to compute the base
period prices (1990-1992=100) instead of computing simple average prices to represent base period
prices as previous base prices.

Reference period selection

The selection of the reference period is
one where all prices are considered relatively stable and the agricultural economy is in a healthy
state of equilibrium in agricultural production environment. The current Prices Received index reference period is 1990-1992 which replaced the
prior reference period of 1977. Overall, the average prices received by producers for the period
1990-1992 are on the trend of the last 20 years, the
new era of world markets for major crops. The
average all farm products index for the period
1990-1992 is very close to the 20-year trend of
overall prices received for farm products (Milton,
1995).

USDA, National Agricultural Statistics Service

One of the advantages of the national policy of updating the reference and weight base period is to set the intervals of about 10 years. It intends to maintain the good measure of price relationship and to give a more precise comparison.
NASS is currently planning a price program revision to move the reference period to a more recent
base.

NASS has added “All other crops” as a
component index. Cash receipts for "all other
crops" now account for 7.5 percent of total cash
receipts compared with 4.3 percent in 1971-1973,
the prior weighting period. The "other crops" index covers greenhouse/nursery products, sugar
beets, sugarcane, mushrooms, and other specialty
crops. Prices for many of these other crops are
updated annually.

Commodity selection
NASS selects a commodity when marketing data are available. The average value of marketings for the commodity during the three-year
base-weight period of 1990-1992 must represent
more than 0.1 percent of total cash receipts or
more 2 percent of total value of commodities represented by the component index, such as fruits,
vegetables, meat animals, etc.

Coverage of the livestock items in the
Prices Received index remains at 97 percent.
Weights for items covered by the livestock component indexes (meat animals, dairy products, and
poultry and eggs) are all factored up proportionally to account for the 3 percent incompleteness
(USDA, 1970).

Basis of Weights
NASS has expanded the coverage of all
crops in the Prices Received index from 73 to 86
percent and all farm products from 85 to 91 percent in the 1995 revision. NASS also increased the
coverage for vegetables from 52 to 66 percent and
fruits and nuts from 51 to 74 percent. Coverage on
a monthly basis was improved by adding sunflowers, grapes, broccoli, cucumbers, snap beans, cauliflower, and cantaloupes. Almonds were also included in the index, with its price change updated
on a marketing year average basis. Monthly coverage was dropped for honeydew melons and annual
coverage was dropped for green peas. Tables 2.15
and 2.16 show the coverage of commodity items
and groups in the Prices Received indexes and
relative weights for the 1971-1973 and 1990-1992
periods. Table 2.17 shows the weighted average
price for the base price period.

USDA, National Agricultural Statistics Service

Weights for the index of Prices Received
by farmers were determined from USDA official
estimates of farmer cash receipts. NASS calculates
the weights based on a method of the five-year
moving average which means it is updated every
year by adding the most recent available year of
farm cash receipt data and dropping the earliest
year. The five-year moving average weight is designed to capture the continual shift in agricultural
commodities produced and sold and to reflect the
current agricultural market structure. The five-year
moving weights have a two-year lag because of
the availability of farm cash receipts data.

Seasonal variation of agricultural commodities in both prices and quantity weights presents a major challenge to price index construction. The annual weights, or five-year average
weights, will simply ignore the effect of seasonal
2-37

variation in production or consumption. The seasonal marketing pattern method was developed in
the 1995 price index revision to adjust the fiveyear average weights to reflect seasonal variation
of agricultural commodities. The seasonal
weighting pattern was derived from the monthly
marketings collected during 1988-1992 period.
These monthly weights represent the percent of
commodity normally marketed during each month
in this period. The basis for the monthly weighting
pattern is the quantities of commodities sold in
markets obtained from monthly price surveys for
grains, oilseeds, other major field crops, and poultry items, from USDA slaughter data for livestock
items, and from State and Federal market news
shipment data for fruits and vegetables (see Table
2.18). This weighting pattern remains constant and
will be updated periodically such as during intercensal revision or when the time base is revised.
The seasonal marketing adjustments intend to prevent a sharp increase in indexes when prices rise
sharply but there is little seasonal product movement. Overall, the seasonal weighting tends to
lower the all farm products index because, in general, a larger seasonal weight or marketing is associated with a lower price, and a light seasonal
weight or marketing with a higher price.

both the value of cash receipts and its correspondent base period seasonal marketing pattern parameter. It will be zero if the marketing pattern parameter is zero, which means there is no commodity
marketed for that month.
It may be misleading to call
the fiveyear average cash receipts weight because from
one year to another the farm cash receipts are
evaluated at the different prices. Then cash receipt
changes will include both price and quantity
movements. Thus the five-year moving average
farm cash receipts have to be evaluated at the
same prices (such as base prices 1990-1992=100).
(NASS will re-evaluate cash receipt weights to
base year prices starting in 2011). The weights
formula becomes:

w

p q

w

where

c

j 1

5
j
b

p q

j
y ,m

j
b

p

j
m
k 1

c yj
p

k 1

j
y k 1

pbj

5
j
m
k 1

p

j
y k 1

c yj

k 1

represents a year cash receipt of j th

commodity within year-2 to year-6; and
repth
resents the corresponding annual price of j commodity. The difference between the weights
and

is that the later is re-evaluated to the base

c

is the five-year average weight of jth
th

commodity for the m month,
th

is the five-year

total cash receipts of the j commodity and
represents the base period average marketing share
parameter of jth commodity for the mth month. The
average weight for the mth month is determined by
2-38

j
y ,m

price. Therefore, the weight
includes only the
quantity movements of a commodity produced and
sold in market.

j j
m y
j j
j m y

j
y ,m

and

n
j
b

where
The monthly weight of a commodity is defined as the five-year moving average cash receipts values which are weighted by its marketing
pattern:

pbj q yj ,m

j
b ,m

The Prices Received indexes are constructed using the ratio of the current average price
to the base price for each commodity and the
5-year moving average weight (adjusted to reflect
seasonal marketing pattern). The following example indicates the August 2010 Food Grain index is
186 on a 1990-92=100 basis.
USDA, National Agricultural Statistics Service

Aug. 2010
Price
Wheat (bu.)
Rice (cwt.)

$5.56
$12.10

Base Price
_1990-92

Price Ratio (%) Weights
(Aug./base)
(Aug.)

$2.96
$7.07

Link Date Selection and Link Process
NASS has constructed the 1990-1992=100
indexes back through 1975 using the moving average weights and monthly seasonal adjustments.
The 1910-1914 indexes required for parity purposes have been revised to reflect the changes in the
newly constructed 1990-1992 indexes. The
1910-1914 indexes were linked forward starting in
February 1975 based on changes in the 1990-1992
indexes. February 1975 was selected as the link
date since there was less difference in the new
monthly index weights and resulting index levels
than in January compared with using the
1971-1973 fixed weights without the monthly seasonal adjustments. A 1910-1914 other crops index
for 1975 was established by multiplying the ratio
of the 1990-1992 other crops to all crops indexes
for February 1975 by the 1910-1914 all crops index for February 1975 (Milton, 1995).
For example, if the price base reference is
1977 (1977=100), the Food Grains average price
index for 1990-1992 is 120. If the price base reference changes to 1990-1992 (1990-1992 = 100),
then the Food Grains price index becomes 83. To
convert the 1977 base index to 1990-1992, divide
100 by 120 to equal 83.

Index computation

The construction of a price index for agricultural products generally, crops in particular, is
USDA, National Agricultural Statistics Service

187.83
171.14

Price Ratio
x Weight

0.8862
0.1138

166.45
19.47
185.92
(Food Grain Index 185.92 rounds to 186.

more difficult because of two circumstances: 1)
marked seasonal pattern which may shift over year
by year for some commodities; and 2) volatility in
price and production from year to year which is
caused by external conditions such as the weather
or economic influences as well as impact of sharply changes in the international market. These two
problems have to be addressed by building the
indexes into a method for dealing with gaps in the
supply of prices and for smoothing volatile elements. At the same time, it has to reflect changes
in the trend of agricultural product prices.

The Prices Received index is based on
five-year moving average weights which are updated every year to capture shifts in the agricultural market. When the base reference period is updated, the commodities are also updated. This results in a linking process to the prior base reference period. The base prices of commodities are
computed from weighted average monthly prices
in the period 1990-1992. The seasonal weighting
pattern was derived from monthly marketing over
the period 1988-1992, which is used to adjust the
five-year weights to reflect the mix of producers
sell in a given month. These provide some
smoothing for handling volatility and seasonality
of agricultural commodities sold. As the result of
these modifications, the formula of compiling the
index of Prices Received becomes close to a
Young‟s index instead of a Laspeyres index because the reference date of the index weights is
between the base year period and the current period. However, the weight, often referred to as the
market basket, in both the Young and Laspeyres
2-39

formula is based on a year or multiple year average. The weight of the prices received index is
based on a month because the seasonal marketing
pattern is monthly. Consequently, the formula to
construct the Prices Received index is not a Young
formula, but rather a modified Rothwell formula
which was proposed by Doris Rothwell (1958) to
incorporate characteristics of seasonal variation.
The formula was originally proposed in 1924 by
two economists with the USDA, Louis H. Bean
and O. C. Stine. The prices received index formula
becomes:
n
i
mb

P

j
n
j

pmj q yj ,m

n

pbj q yj ,m

j

wbj,m

pmj
pbj

where
stands for a component I
price index, and the subscript b indicates as the
base period and m is for month; is the weighted
average monthly base price (1990-1992=100) of
the jth commodity; the
represents the fiveyear moving average weight of the jth commodity
in the mth month and evaluated at the base period
prices.
In the literature of index numbers, it is
generally agreed that a price relative should be
“weighted” by “values”, since the importance of a

Base Price

Wheat (bu.)
Rice (cwt.)

(1990 – 92)
$2.96
$7.07

Aug. 2010
Price
$5.56
$12.10

price change in a given context is usually proportional to the value of the commodity price change
of which is measured by the relative. Similarly, in
the aggregative type of index, prices are weighted
by quantities, for the same reason. Under certain
conditions, the weighted average of a relative is
identical to an aggregative index. The average of
relatives derives from the concept that the purpose
of an index number is to measure the average price
change of a certain phenomenon over a given period; the price change for a particular commodity
is indicated by the corresponding price relative;
and that, in consequence, an average of relative
gives a measure of average change. This explains
the concept of second equation in the above formula.

The previous example showed the way to
construct the price index by weighted price relatives. In the example, the price relative of wheat is
187.83 and rice is 171.14, weighted by 0.8862 and
0.1138 respectively. The Food Grain price index
is 186. The aggregate method to construct the
price index is to multiply the item price by its
quantity. Suppose the quantity sold is 210 million
bushels for wheat and 800 million pounds for rice.
Then Food Grain price index will be 186 on a
1990-1992 = 100 basis.

Quantity
(million)
210 (bu.)
8 (cwt.)

Total Value
Base
$621.60
$56.56
$678.16

Total Value
Aug.
$1,167.60
$96.80
$1,264.40

Food Grain Index = $1,264.40 / $678.16 or 186

2-40

USDA, National Agricultural Statistics Service

Table 2.19 shows relative weights of the
component indexes for Prices Received for selected years. The All Farm Products index is the top
level index which contains all commodities. The
All Crops index includes the components, Food
Grains, Feed Grains Hay, Oilseeds, Cotton, Tobacco, Fruits & Nuts, Commercial Vegetables,
Potatoes & Dry beans, and Other Crops. The Livestock & Products index covers Meat Animals,
Dairy Products, and Poultry & Eggs components.
The Food Commodities index is another high level
index which includes the components, Food
Grains, Oil Crops, Fruit & Nuts, Commercial
Vegetables, Potatoes & Dry Beans, Meat Animals,
Dairy Products, and Poultry & Eggs. The formula
of the up-level index is a weighted average of
component indexes within the group, which is
identical to a component index except the last
terms in summation are indexes instead of price
relatives.

Uses and Limitations

Estimates of agricultural commodity prices received by producers are an important part of
the Nation's economic database. They are used by
industry management, economists, farmers, farm
organizations, legislators, and Government officials for analyses of price trends, production, and
sales of agricultural commodities. They are also
important for calculating deficiency payments or
support payments for Government programs,
computing cash receipts from farm marketings,
and estimating agriculture's contribution to the
gross national product. Further, the series are used
in administering marketing orders, including those
for milk, fruit, nuts, and vegetables (USDA, 1970).
Factors such as changes in quality, utilization, and movement of old versus new crops affect
month-to-month price changes. Shifting areas of
marketing, world markets, trade policies, and
USDA, National Agricultural Statistics Service

changing marketing functions performed by the
producer affect longer term price analysis. New
varieties or breeds, specialized uses of products,
and changing marketing arrangements are all reflected in the average prices received by producers. Analysts should keep these factors in perspective when analyzing data series on Prices Received
by farmers (USDA, 1970).

Price data based on statistical surveys are
subject to sampling and non-sampling errors.
Sampling errors are defined as differences between the population estimates from different
samples and the population value. They measure
the probability of an estimate's departure from the
values obtained with a complete enumeration.
Sampling errors can be measured statistically
based on probability samples. For major commodities, standard errors for NASS price estimates
at the U.S. level are generally in the 1-2 percent
range. Efforts are made to control the level of
sampling errors by list stratification and increased
sample size as resources and respondent burden
permit (USDA, 1970).

Non-sampling errors include nonresponse
errors introduced when survey respondents refuse
to cooperate or cannot be located during the survey period; errors introduced by an interviewer's
"leading" the respondent or otherwise influencing
the respondent's answer; errors resulting from incorrectly recording or transferring data, whether
done manually or with data processing equipment.
Errors may also arise from the questionnaire when
questions are unclear, definitions are imprecise, or
the order of questions is not logical. Non-sampling
errors are minimized through standardized questionnaires, instruction manuals, training, manual
review of reported data, and automated edit checks
during summarization (USDA, 1970).

2-41

Publication and Dissemination

NASS publishes Prices Received estimates which includes the current month in the
monthly Agricultural Prices report. Issuance occurs at 3:00 p.m. on or near the last business day
of each month.

Publication Process
Publication process. NASS developed software to
structure the Prices Received estimates in tabular
format. A composed draft copy of the Agricultural
Prices report is prepared 2-3 weeks prior to publication release for program and format review.
Commodity Statisticians review the final estimates
again in the published formatted tables.

NASS creates a file for the Quick Stats database at the time of composition of the published
report. A final review occurs prior to release of the
report at 3:00 p.m. on the scheduled day of release.
Go to http://www.nass.usda.gov/Data_and_ Statistics/Quick_Stats/index.asp for the Quick Stats database.

In addition to Agricultural Prices and the
on-line Quick Stats data base, a number of commodity reports publish agricultural price data.
They include:
Crop Values
Noncitrus Fruits and Nuts
Citrus Fruits
Vegetables - Annual
Meat Animals - Production, Disposition,
and Income
Milk - Production, Disposition, and Income
Poultry - Production and Value
2-42

Other USDA agencies also publish NASS Agricultural Prices data.

Publication Constraints. NASS strives to establish and publish estimates on all data series. There
are situations, however, that require an aggregation of the estimates. Also, estimates may not be
published if disclosure of an individual operation
is possible. Reported data is protected by Title 7 of
the U.S. Code. Title 7 can be found at
http://www.law.cornell.edu /uscode/7/.

NASS Prices Received estimates may be
published at the U.S. level or at the State level. No
regional level estimates are published for Prices
Received. Current month prices are mid-month;
prices for previous months and years are entire
month.

In the event of a publication constraint,
footnotes are used to inform the reader of the reason. The two most common reasons for not publishing data are:
(D) Withheld to avoid disclosing data for
individual operations
(S) Insufficient number of reports to establish an estimate.

Revisions. Prices Received estimates may be revised in subsequent months and years. Data collection is for the current year/period as well as the
previous “full-month” price.
Mid-month estimates are based on data for
the first two weeks or the 5 business days around
the 15th of the month in order to publish price estimates by the end of the month. The preliminary
month (mid-month) estimates are revised based on
USDA, National Agricultural Statistics Service

full month data and published the following
month.

Dissemination

Agricultural Prices estimates are disseminated to the public through monthly reports. The
monthly report is issued each month at 3:00 p.m.
Eastern time, on or near the last business day of
each month. The 3:00 p.m. embargo and simultaneous access applies to all forms of dissemination.
Electronic data and hard copy publications are
made available simultaneously. Prior disclosure of
data is unlawful, with penalties of fine and imprisonment.

In addition to Agricultural Prices and the
on-line Quick Stats data base, a number of commodity reports also publish agricultural price data
and include:
Crop Values
Noncitrus Fruits and Nuts
Citrus Fruits
Vegetables-Annual
Meat Animals-Production, Disposition, and
Income
Milk-Production, Disposition, and Income
Poultry-Production and Value

The publication is available in hard copy
(printed product); however the main method of
dissemination is via the USDA-NASS website.
The website address is: www.nass.usda.gov.

Historic Data. The last five years of indexes are
published quarterly (January, April, July, and October) in Agricultural Prices. However, revised
indexes are calculated monthly and posted to the
Quick Stats database. These monthly revisions are
meant to improve the timeliness of the data series.
These revised estimates are official NASS estimates.

The main method of dissemination for reports is from the USDA-NASS website. The reports are available at www.nass.usda.gov. The reports and data are in the following formats:

Electronic versions (pdf files) are also
available for Agricultural Prices reports dating
back to 1964. These files contained “scanned”
copies of the original hard copy reports.

in a text format,
in a pdf format,
in a downloadable format for spreadsheets
or databases via a comma separated value
(csv) format, and
QuickStats searchable database.
Quick Stats is NASS‟s on-line searchable
database. Customers can obtain the specific data
items of interest. These data items of interest are
also available historically with some items available back into the 1800s. Historic data can be
downloaded for each item of interest.
USDA, National Agricultural Statistics Service

2-43

References
Diewert, W.E., Alterman, W.F., Feenstra, R.C.
(2009). Time Series versus Index Number
Methods for Seasonal Adjustment. Price
and Productivity Measurement Vol. 2,
29-52. Trafford Press. from http://www.
indexmeaures.com/Vol2,%20Seasonality
%2009,10,18.pdf
Milton, B., Kleweno, D., Vanderberry, H..(1995,
January). Reweighting and reconstructing
USDA‟s indexes of prices received and
paid by farmers. ESB Staff Report No.
ESB-95-01.

2-44

Stauber, R. B., Koffsky, N.M., Randall, C.K.
(1950, April). The revised price indexes.
USDA. Agricultural Economic Research
No. 2. Vol. 2.
USDA. (1970, April). Major Statistical Series of
the Department of Agriculture, Agricultural Prices, Expenditures, Farm Employment, and Wages. AH-671, Vol. 1.
USDA. (1952, May). A Reference Manual on Parity Price, Index of Prices Paid by Farmers, and Index of Price Received.

USDA, National Agricultural Statistics Service

Appendix of Tables
Table 2.1. Prices Received Program States by Commodity, Monthly and Annual
Austrian
Barley
All ChickState
Canola
Corn
Winter Peas
peas
Feed
Malt
All
Alabama .........
Alaska ............
Arizona...........
Arkansas.........
California .......
Colorado.........
Connecticut ....
Delaware ........
Florida ............
Georgia...........
Hawaii ............
Idaho ..............
Illinois ............
Indiana ...........
Iowa ...............
Kansas ............
Kentucky ........
Louisiana ........
Maine .............
Maryland ........
Massachusetts
Michigan ........
Minnesota.......
Mississippi .....
Missouri .........
Montana .........

A
A
M
M

M
M

M
M

A
A

A

M

M

M

A
A
A

M

A

A

A

A

A
A

M

A
A
A
M

A
M
M
M
M
M
A
A

M

M

A
M

M

M

M

M

A

A

M
M
A
M
A

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-1

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual
Barley
Austrian
All
State
Canola
Corn
Winter Peas
Chickpeas
Feed
Malt
All
Nebraska ........
Nevada ...........
New England..
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin.......
Wyoming .......

M

M

M

M

M

M

A
A
M

M
A

M

A

A
A

A

A

M

M

M

M

M

A
M
A

M

A

A

A

A
A
A
M
M
M
A
A
M
A
M
M
M
A
A
A
A
M
A

Monthly program States designated as M and Annual program States as A

2T-2

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Cotton
Dry
Dry
State
Flaxseed
Beans
Edible Peas
Upland
Pima
Seed
Alabama .........
Alaska ............
Arizona...........
Arkansas.........
California .......
Colorado.........
Connecticut ....
Delaware ........
Florida ............
Georgia...........
Hawaii ............
Idaho ..............
Illinois ............
Indiana ...........
Iowa ...............
Kansas ............
Kentucky ........
Louisiana ........
Maine .............
Maryland ........
Massachusetts
Michigan ........
Minnesota.......
Mississippi .....
Missouri .........
Montana .........

M

M
A

M
M
M

A
A

A
M

M
M
M

M
M

A
M
M

A

A

M

M

M
A

M
A

A

A

M

A

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-3

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Cotton
Dry
Dry
State
Flaxseed
Beans
Edible Peas
Upland
Pima
Seed
Nebraska ........
Nevada ...........
New England..
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin.......
Wyoming .......

M

A

A
A

M

M

M

A

A

A

A

A

A

A

M
M

M
M

A

A

A

A

A

M

A

A

A
A

A

A

Monthly program States designated as M and Annual program States as A

2T-4

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Hay
Oil
Mustard
State
Hops Lentils1
Oats
Seed
Alfalfa Other All
Peppermint Spearmint
Alabama .........
Alaska ............
Arizona...........
Arkansas.........
California .......
Colorado.........
Connecticut ....
Delaware ........
Florida ............
Georgia...........
Hawaii ............
Idaho ..............
Illinois ............
Indiana ...........
Iowa ...............
Kansas ............
Kentucky ........
Louisiana ........
Maine .............
Maryland ........
Massachusetts
Michigan ........
Minnesota.......
Mississippi .....
Missouri .........
Montana .........
1

M
A
M
M
A
A

M
M
A
M
M
M
A
A
A
A
M
M

A
M
A
M
M
A

A
M
A
M
M
A

A
A
A

A
A
A

M
M
A
M
M
M
A
A
A

M
M
A
M
M
M
A
A
A

A
A
M
M
A

A
A
M
M
A

A
A
A
A

A

A
A

M

A
M
A
M
A

A

A

A

A

A

A
A
M
M

A
A

Only United States prices published monthly

USDA, National Agricultural Statistics Service

2T-5

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Hay
Oil
Mustard
State
Hops Lentils1
Oats
Pepper- SpearSeed
Alfalfa Other All
mint
mint
Nebraska ........
Nevada ...........
New England..
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin.......
Wyoming .......
1

M
M
A
M
M
A
M
M
M
M
M
A

M
M
A
M
M
A
M
M
M
M
M
A

M
M
A
M
M
A
M
M
M
M
M
A

M
A
M
M
A
A
M
A
M
M

A
M
A
M
M
A
A
M
A
M
M

A
M
A
M
M
A
A
M
A
M
M

M

M

A

M
A
M
A
A
M
M

A
A
A

A

A

A

A

A

A

A

A
M
M
A

A

M

A
A
M
A

Only United States prices published monthly

2T-6

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Rice
Proso
Medium/
State
Peanuts
Rapeseed
Short
Medium
Long
Millet
Short
All
Grain
Grain
Grain
Grain
Alabama ...........
Alaska ..............
Arizona ............
Arkansas ..........
California .........
Colorado ..........

M

M
M

M
M

M
M

M
M

M
M

M

M

M

M

M
M

M
M

M
M

M
M

A

Connecticut ....
Delaware ..........
Florida .............
Georgia ............

M
M

Hawaii ............
Idaho ................
Illinois ..............
Indiana .............
Iowa .................
Kansas .............
Kentucky..........
Louisiana .........
Maine ...............
Maryland..........

A

Massachusetts
Michigan ..........
Minnesota ........
Mississippi .......
Missouri ...........
Montana ...........

A
M

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-7

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Rice
Proso
Medium/
State
Peanuts
Rapeseed
Short
Medium
Long
Millet
Short
All
Grain
Grain
Grain
Grain
Nebraska ..........
Nevada .............
New England ...
New Jersey.......
New Mexico ....
New York ........
North Carolina .
North Dakota ...
Ohio .................
Oklahoma ........
Oregon .............
Pennsylvania ....

A

M
M

M
A

Rhode Island ..
South Carolina .
South Dakota ...
Tennessee ........
Texas ...............
Utah .................

M
A
M

M

M

M

M

M

Vermont .........
Virginia ............
Washington ......
West Virginia...
Wisconsin ........
Wyoming .........

M
A

Monthly program States designated as M and Annual program States as A

2T-8

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Potatoes
Sorghum
State
Rye
Safflower
Grain
Spring Summer
Fall
Winter
Alabama ...........
Alaska ..............
Arizona ............
Arkansas ..........
California .........
Colorado ..........

A
M
M

M
M

M
M

M

A
A

A

Connecticut ....
Delaware ..........
Florida .............
Georgia ............
Hawaii .............
Idaho ................
Illinois ..............
Indiana .............
Iowa .................
Kansas .............
Kentucky..........
Louisiana .........
Maine ...............
Maryland..........
Massachusetts ..
Michigan ..........
Minnesota ........
Mississippi .......
Missouri ...........
Montana ...........

A
M
A
M

A
A

A

M

A

M
M
M

A
A

A
M

A
A

A

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-9

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Potatoes
Sorghum
State
Rye
Safflower
Grain
Spring
Summer
Fall
Winter
Nebraska ........
Nevada ...........
New England..
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin.......
Wyoming .......

A
A

A

M

A
A
M
M

A
A
A

M
A

A
A

M
A
A

A
A
A

M

M

A

A

M

A
M

A

M
M
M

A

Monthly program States designated as M and Annual program States as A

2T-10

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Sunflowers
Sweet
State
Soybeans Sugarbeets Sugarcane
Potatoes
Oil
Non-Oil
All
Alabama .........
Alaska ............
Arizona...........
Arkansas.........
California .......
Colorado.........
Connecticut ....
Delaware ........
Florida ............
Georgia...........
Hawaii ............
Idaho ..............
Illinois ............
Indiana ...........
Iowa ...............
Kansas ............
Kentucky ........
Louisiana ........
Maine .............
Maryland ........
Massachusetts
Michigan ........
Minnesota.......
Mississippi .....
Missouri .........
Montana .........

A

A

M
A
A
A
A
A

A
M

A
M

A
M

A
A

A

A
A
A

M
M
M
M

M

M

M

M
A

A

A
M
M
M
M

A
A

M

M

M
A

A

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-11

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
State
Nebraska ........
Nevada ...........
New England..
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin.......
Wyoming .......

Soybeans

Sugarbeets

M

A

Sugarcane

Sunflowers
Oil

Non-Oil

All

A
A
M
M
M
A

Sweet
Potatoes

A

A
A

M

M

M

A

A

A

M

M

M

A
A
A
M
M
A

A

A

A
A
M
A

Monthly program States designated as M and Annual program States as A

2T-12

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Tobacco
State
Cigar
Cigar
Flue
Fire
Light-Air
Dark-Air
All
Cure
Cured
Cured
Cured
Binder
Wrapper
Alabama ...........
Alaska ..............
Arizona ............
Arkansas ..........
California .........
Colorado ..........
Connecticut ......
Delaware ..........
Florida .............
Georgia ............

A
A
A

A
A
A

Hawaii ............
Idaho ................
Illinois ..............
Indiana .............
Iowa .................
Kansas .............
Kentucky..........
Louisiana .........
Maine ...............
Maryland..........
Massachusetts ..
Michigan ..........
Minnesota ........
Mississippi .......
Missouri ...........
Montana ...........

A

A

A

A

A

A

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-13

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Tobacco
State
Cigar
Cigar
Flue
Fire
Light-Air
Dark-Air
All
Cure
Cured
Cured
Cured
Binder
Wrapper
Nebraska ..........
Nevada .............
New England ...
New Jersey.......
New Mexico ....
New York ........
North Carolina .
North Dakota ...
Ohio .................
Oklahoma ........
Oregon .............
Pennsylvania ....

A

A

A

A

A

A

A

A

Rhode Island ..
South Carolina .
South Dakota ...
Tennessee ........
Texas ...............
Utah .................

A

A
A

A

A

A

A

A

Vermont .........
Virginia ............
Washington ......
West Virginia...
Wisconsin ........
Wyoming .........

A

A
A

A

Monthly program States designated as M and Annual program States as A

2T-14

USDA, National Agricultural Statistics Service

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Wheat
State
Hard Red Durum
Soft
Hard Red
Soft Red
Other
Winter
All
Winter
Winter
Spring
Spring
White
Alabama ...........
Alaska ..............
Arizona ............
Arkansas ..........
California .........
Colorado ..........
Connecticut ......
Delaware ..........
Florida .............
Georgia ............

Hawaii ............
Idaho ..............
Illinois ..............
Indiana .............
Iowa .................
Kansas .............
Kentucky..........
Louisiana .........
Maine ...............
Maryland..........
Massachusetts ..
Michigan ..........
Minnesota ........
Mississippi .......
Missouri ...........
Montana ...........

A

A

A

M
M

M
M

M
M

M

M

M

A
A
A
M
M
M
A
M
A
A

A
A
A
M

M

M

M

M
M
M

A
M
M
A
M
M

M
M
M
M

M
M
M
A
M
A
A
A

M
M

M

M

M

M

M
M

M

M
M
A
M
M

Monthly program States designated as M and Annual program States as A

USDA, National Agricultural Statistics Service

2T-15

Table 2.1. Prices Received Program States by Commodity, Monthly and Annual (cont.)
Wheat
State
Hard Red Durum
Soft
Hard Red Soft Red
Other
Winter
All
Winter
Winter
Spring
Spring
White
Nebraska ..........
Nevada .............
New England ...
New Jersey.......
New Mexico ....
New York ........
North Carolina .
North Dakota ...
Ohio .................
Oklahoma ........
Oregon .............
Pennsylvania ....

M
A
A
A
A
M
M
M
M
M
A

M

M
A

A

M

M

M

M
M

M

M

M

M

M

M

M

A
A
A
M
M
M
M
M
A

Rhode Island ..
South Carolina .
South Dakota ...
Tennessee ........
Texas ...............
Utah .................

A
M
A
M
A

M
A

A

A
M
A
M
A

Vermont .........
Virginia ............
Washington ......
West Virginia...
Wisconsin ........
Wyoming .........

A
M
A
A
A

M

M

M

A
M
A
A
A

Monthly program States designated as M and Annual program States as A

2T-16

USDA, National Agricultural Statistics Service

Table 2.2. Strata for Cotton

Stratum

Description

1 ...........
2 ...........
3 ...........
4 ...........
5 ...........
6 ...........
7 ...........
8 ...........
9 ...........
10 .........
11 .........
12 .........

1 – 999 Bales
1,000 – 2,499 Bales
2,500 – 4,999 Bales
5,000 – 7,499 Bales
7,500 – 9,999 Bales
10,000 – 19,999 Bales
20,000 – 49,999 Bales
50,000 – 74,999 Bales
75,000 – 99,999 Bales
100,000 + Bales
Cooperative
Extreme Operator

USDA, National Agricultural Statistics Service

2T-17

Table 2.3. Specialty Elevator Indicator for Grain Stratification

Stratum Description
1 ..........
2 ..........
3 ..........
4 ..........
5 ..........
6 ..........
7 ..........
8 ..........
9 ..........
10 ........
11 ........
12 ........
13 ........
14 ........
15 ........
16 ........
17 ........
18 ........
19 ........
20 ........
21 ........
22 ........
23 ........
24 ........
25 ........
26 ........
27 ........
28 ........
29 ........

2T-18

Processing Mill
Small Dry Bean Elevator
Large Dry Bean Elevator
Flax
Barley
Barley (Malting)
Sunflower (Non-oil)
Sunflower (Oil)
Small White Corn
Large White Corn
Small Ethanol Plant
Large Ethanol Plant
Feed Mill
Oilseed Processor
Railroad Spur
Small Buyer/Dealer
Large Buyer/Dealer
Small Wheat
Large Wheat
Soybean Crusher
Soybeans
Oats
Wheat (Durum)
Terminal
Corn
Large Livestock or Poultry Grain Buyer
Pulse Buyer
Large Grain and Large Dry Bean or Pulse Buyer
Organic Crops

USDA, National Agricultural Statistics Service

Table 2.4. Reference Months and Target CVs for Grain Prices Commodities
Commodity

Reference Month*

United States

Yellow Corn ................

January, October

0.5

Soybeans ......................

January, October

0.5

All Wheat ....................

June, July

1.0

Upland Cotton .............

November, December

1.0

Barley ..........................

August, September

2.5

Oats ..............................

July, August

2.5

Sorghum ......................

November, December

1.5

All Sunflowers .............

November, December

2.5

* Data are collected in the month following the reference month. Selected months used to measure survey performance.

Table 2.5. Honey Color Class with Pfund Scale
Honey Color Class
Pfund Scale (mm)
Water white, extra white, and white
0 - 34
Extra light amber
35 - 50
Light amber, amber, and dark amber
51 +
Specialty areas
any

USDA, National Agricultural Statistics Service

2T-19

Table 2.6. Mink Color Class by Trade Names
Mink Color Class
Trade Names
Blackgama1
Black
Aleutian1, Lutetia1
Blue Iris
Dark Brown, Lunaraine1, Ranch Wild
Demi/Wild
Arcturus1, Liana, Morning Light
Lavender
Autumn Haze, Dawn, Natural Brown, Orchid
Pastel
Tourmaline1
Pearl
Aeolian1, Cerulean1, Diaden, Fawn, Palomino
Sapphire
Azurene1
Violet
Jasmine1
White
Pink, Rose, Rovalia1
Miscellaneous
1

American Legend Trademark Colors

Table 2.7. Size and Descriptions for Catfish and Trout
Type
Description
Catfish
Fish kept for egg production, including males. Broodfish produce the ferBroodfish
tilized eggs which go to hatcheries. The desirable size is three to ten
pounds or four to six years of age.
Fish under two inches in length weighing 2 pounds per 1,000 fish
Fry
Fish two to six inches in length weighing 2 pounds to 60 pounds per
Fingerlings
1,000 fish
Fish over six inches in length weighing 60 to 180 pounds per 1,000 fish
Small Stockers
Fish over six inches in length weighing 180 to 750 pounds per 1,000 fish
Large Stockers
Fish weighing over ¾ pound to 1 ½ pounds
Small Foodsize
Medium Foodsize Fish weighing over 1 ½ pounds to 3 pounds
Fish weighing over three pounds
Large Foodsize
Trout
1”to less than 6”
6” to less than 12”
12” or longer

2T-20

Usually fingerlings
Usually stockers and weigh less than ¾ pound
Grown commercially for food usually weighing ¾ pound to 1 ½ pounds

USDA, National Agricultural Statistics Service

Table 2.8. Data Collection and Estimation Centers by Region and State

Region

East

East
Central

Estimation
Center (EC)
Florida EC:
Alabama, Delaware,
Georgia, Maryland, Mississippi, North Carolina,
New Jersey, South Carolina, Virginia, New England, Florida
Wisconsin EC:
Indiana, Kentucky, Michigan, New York,
Ohio, Pennsylvania, Tennessee, West Virginia,
Wisconsin

West
Central

North Dakota EC:
Arkansas, Iowa, Illinois,
Kansas, Louisiana, Minnesota, Missouri, Nebraska, Oklahoma, South Dakota, Texas, North Dakota

West

California EC:
Alaska, Arizona, Colorado, Hawaii, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, Wyoming, California

USDA, National Agricultural Statistics Service

Arkansas
Data Collection Center

Wyoming
Data Collection
Center

Alabama, Delaware,
Gerogia, Maryland, Mississippi, North Carolina, New
Jersey, South Carolina,
Virginia, New England,
Florida
Indiana, Kentucky, Michigan, New York,
Ohio, Pennsylvania, Tennessee, West Virginia,
Wisconsin
Arkansas, Iowa, Illinois, Kansas, Lousiana, Minnesota,
Missouri, Nebraska,
Oklahoma, South
Dakota, Texas,
North Dakota
Alaska, Arizona,
Colorado, Hawaii,
Idaho, Montana,
New Mexico, Nevada, Oregon, Utah,
Washington, Wyoming, California

2T-21

Table 2.9. Market Year for Selected Field Crop Commodities by Geographic Areas
Selected Commodity

Market Year

Geographic Area

June 1 to May 31

U.S.
Arizona, California, Delaware, Kentucky, Maryland, New Jersey,
North Carolina, Pennsylvania, Virginia

Aug. 1 to July 31
July 1 to June 30

Alaska, Maine
Other Program States

Canola

July 1 to June 30

U.S. and Program States

Chickpeas
(Garbanzo Beans)

Sept. 1 to Aug. 31

U.S.

Sept. 1 to Aug 31
July 1 to June 30

U.S.
Texas

Aug. 1 to July 31

Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi,
North Carolina, Oklahoma, South Carolina, Tennessee

Sept. 1 to Aug. 31

Arizona, California, Delaware, Illinois, Indiana, Iowa, Kansas,
Kentucky, Maryland, Missouri, Nebraska, New Mexico, Ohio,
Pennsylvania, South Dakota,

Oct. 1 to Sept. 30

Virginia, West Virginia, and Other Program States

Cotton

Aug. 1 to July 31

U.S. and Program States

Cottonseed

Aug. 1 to Feb. 28

U.S. and Program States

Dry Edible Beans

Sept. 1 to Aug. 31

U.S. and Program States

Flaxseed

July 1 to June 30

U.S. and Program States

May 1 to April 30

U.S.

April 1 to Mar. 31

Arizona and California

May 1 to April 30

Alabama, Arkansas, Colorado, Florida, Georgia, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nevada, New Mexico,
North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia

June 1 to May 31

Other Program States

Sept. 1 to Aug 31

United States and Program States

Barley

Corn for Grain

Hay

Hops

2T-22

USDA, National Agricultural Statistics Service

Table 2.9. Market Year for Selected Field Crop Commodities by Geographic Areas (cont.)
Selected Commodity

Market Year

Geographic Area

Oats

June 1 to May 31
May 1 to April 30
June 1 to May 31
Aug 1 to July 31
Sept. 1 to Aug 31
July 1 to June 30

U.S.
Alabama, Georgia, Texas
North Carolina, Oklahoma, South Carolina, Virginia
Maine and New York
Alaska
Other Program States

Peanuts

Aug. 1 to July 31

U.S. and Program States

Potatoes
Winter/Spring
Summer
Fall

Nov. 1 to Aug 31
June 1 to Dec 31
July 1 to June 30

U.S. and Program States

Aug. 1 to July 31
July 1 to June 30
Aug. 1 to July 31
Oct. 1 to Sept. 30
Sept. 1 to Aug. 31

U.S.
Louisiana and Texas
Arkansas and Mississippi
California
Missouri

Sept. 1 to Aug. 31
June 1 to May 31
Aug. 1 to July 31
Sept. 1 to Aug. 31

U.S.
Texas
Alabama, Arkansas, Georgia, Louisiana, Mississippi, Oklahoma,
South Carolina, Tennessee
Other Program States

Soybeans

Sept. 1 to Aug. 31
July 1 to June 30
Aug. 1 to July 31
Sept. 1 to Aug. 31

U.S.
Texas
Louisiana and Mississippi
Other Program States

Sunflowers

Sept. 1 to Aug. 31
July 1 to June 30
Sept. 1 to Aug. 31

U.S.
Texas
Other Program States

Sweet Potatoes

July 1 to June 30
July 1 to May 31
August 1 to May 31
August 1 to July 31

U.S., Alabama, and California
Georgia, Louisiana, North Carolina, and Texas
South Carolina and Virginia
New Jersey

Rice

Sorghum for Grain

USDA, National Agricultural Statistics Service

2T-23

Table 2.9. Market Year for Selected Field Crop Commodities by Geographic Areas (cont.)
Tobacco
Dark Air-Cured

Dec. 1 to Feb. 28

U.S. and Program States

Flue-Cured

July 1 to Nov. 30

U.S. and Program States

Fire-Cured

Dec. 1 to Mar. 31
Jan. 1 to Mar. 31
Dec. 1 to Jan. 31

U.S.
Kentucky and Tennessee
Virginia

Nov. 1 to May 31
Nov. 1 to Feb. 28

U.S.
Indiana, Kentucky, Missouri, North Carolina, Ohio, Tennessee,
Virginia, West Virginia

Mar. 1 to May 31

Maryland and Pennsylvania

June 1 to May 31

U.S.

May 1 to April 30

Alabama, Florida, Georgia, Louisiana, Mississippi, Texas

June 1 to May 31

Arizona, Arkansas, California, Delaware, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, and Virginia

July 1 to June 30

Other Program States

Light Air-Cured

Wheat

2T-24

USDA, National Agricultural Statistics Service

Table 2.10. Market Year for Selected Vegetable Commodities by Geographic Areas
Selected Commodity

Market Year

Geographic Area

Aspargus

Jan. 1 to Oct. 31
May 1 to July 31
April 1 to July 31

U.S.
California
Michigan and Washington

Broccoli

Jan. 1 to Oct. 31

U.S. and California

Cantaloups

May 1 to Dec. 31
Oct. 1 to Dec. 31
May 1 to Dec. 31
May 1 to Aug. 31

U.S.
Arizona
California
Texas

Carrots

Jan. 1 to Dec. 31
July 1 to Dec. 31
April 1 to Aug. 31

U.S. and California
Michigan
Texas

Cauliflower

Jan. 1 to Dec. 31
Nov. 1 to April 30
July 1 to Oct. 31

U.S. and California
Arizona
New York

Celery

Jan. 1 to Dec. 31
July 1 to Oct. 31

U.S. and California
Michigan

Mar. 1 to Dec. 31
May 1 to Nov. 30

U.S.
California

Mar. 1 to May 31
Oct. 1 to Dec. 31

Florida
Florida

May 1 to June 30
Sept. 1 to Nov. 30

Georgia
Georgia

June 1 to Sept. 30
July 1 to Oct. 31

Michigan
New York

June 1 to July 31
Sept. 1 to Oct. 31

Virginia
Virginia

Honeydew Melons

May 1 to Nov. 30
May 1 to Sept. 30

U.S., Arizona, and California
Texas

Lettuce

Jan. 1 to Dec. 31
Nov. 1 to April 30
Oct. 1 to April 30
April 1 to Nov. 30

U.S. and California
Yuma, Arizona
Other Areas in Arizona
New Jersey

Cucumbers

Onions
Spring Onions
Summer Onions
(non-storage)
Summer Onions
(storage)

Jan. 1 to Dec. 31
April 1 to July 31
May 1 to Sept. 30

U.S.

Sept. 1 to April 30

USDA, National Agricultural Statistics Service

2T-25

Table 2.10. Market Year for Selected Vegetable Commodities by Geographic Areas (cont.)
Selected Commodity
Snap Beans

Sweet Corn

Tomatoes

2T-26

Market Year

Geographic Area

April 1 to July 31
Oct. 1 to May 31
July 1 to Oct. 31

U.S. and California
Florida
New York

Jan. 1 to Dec. 31
April 1 to Nov. 30

U.S.
California

Jan. 1 to June 30 & Nov. 1 to Dec. 31

Florida

July 1 to Oct. 31

All Other Monthly States

Jan. 1 to Dec. 31
May 1 to Nov. 30

U.S.
California

Jan. 1 to June 30
Oct. 1 to Dec. 31

Florida

Jan. 1 to Dec. 31

All Other Monthly States

USDA, National Agricultural Statistics Service

Table 2.11. Market Year for Selected Noncitrus Fruit Commodities by Geographic Areas
Selected Commodity

Market Year

Geographic Area

July 1 to January 31

Arizona, Minnesota, Illinois, Iowa, Missouri, Maine, New
Jersey, Tennessee, Wisconsin

Sept 1 to Aug 31

Idaho, Oregon, Utah, Washington, West Virginia
California, Colorado, Connecticut, Indiana, Maryland

July 1 to June 30

Massachusets, Michigan, New Hampshire, New York, North
Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia

May 25 to Aug. 20

Utah and Washington

May 25 to Aug. 20
June 15 to Aug. 15
June 20 to Aug. 20

California

Dried Figs

June 5 to Oct. 31

U.S. and California

Grapes
Concord

Sept 1 to Nov. 1

New York and Pennsylvania

May 25 to April 30
June 5 to July 15
July 10 to Oct. 31

U.S. and California
Arizona
Arkansas, Georgia, Michigan, Missouri, New York, North
Carolina, Ohio, Pennsylvania

Raisin

Sept. 1 to May 31

U.S. and California

Nectarines

April 30 to Oct. 15

U.S. and California

May 1 to Oct. 31
May 20 to Aug. 31
June 1 to Sept 30

U.S.
Georgia and South Carolina
Alabama, Arkansas, California, Colorado, Illinois, Kentucky,
Louisiana, Missouri, North Carolina, Ohio, Oklahoma, Tennessee, Texas, Utah, Virginia
Connecticut, Massachusetts, Idaho, Michigan, New York
Indiana, Maryland, New Jersey, Oregon, Pennsylvania,
Washington, West Virginia

Apples (fresh)

Apricots
Fresh
processed
Dried

Fresh

Peaches (fresh)
Aug. 1 to Sept 30

Pears (fresh)

July 1 to Sept 30
July 1 to June 30
July 1 to April 30
Aug. 10 to May 31
July 1 to April 30

U.S. and California
Oregon and Washington
Colorado and Connecticut
Michigan and New York
Pennsylvania and Utah

Plums
fresh

May 20 to Sept. 30
California

processed

June 1 to Sept. 30

USDA, National Agricultural Statistics Service

2T-27

Table 2.12. Market Year for Selected Citrus Fruit Commodities by Geographic Areas
Selected Commodity

Market Year

Geographic Area

Grapefruit

Nov. 1 to June 30
Nov. 1 to Oct. 31
Sept. 10 to July 1
Oct. 1 to May 30

Arizona
California
Florida
Texas

Lemons

Sept. 1 to March 31
Aug. 1 to July 31

Arizona
California

Nov 1 to March 31
Nov. 1 to June 15

Arizona
California

Valencia

Jan. 1 to June 30
March 15 to Dec. 20
Jan. 1 to July 31
Jan. 15 to May 15

Arizona
California
Florida
Texas

Early and Mid-season

Jan. 1 to Dec. 31
Sept. 25 to Feb. 15

Florida
Texas

Tangelos

Oct. 15 to March 1

Florida

Tangerines and Mandarins

Nov. 1 to April 30
Nov. 1 to May 15
Oct. 1 to May1

Arizona
California
Florida

Temples

Jan. 1 to March 1

Florida

Oranges
Navel

2T-28

USDA, National Agricultural Statistics Service

Table 2.13. Market Year for Selected Livestock Commodities by Geographic Areas
Selected Commodity

Market Year

Geographic Area

Cattle
Honey
Lambs
Milk
Mohair
Sheep
Turkeys
Wool

Jan. 1 to Dec. 31

U.S. and Program States

Broilers
Eggs
Hogs
Other Chickens

Dec. 1 to Nov. 30

U.S. and Program States

USDA, National Agricultural Statistics Service

2T-29

Table 2.14. Summary of Estimates by Selected Commodity
Commodity

Summary

Level

Class or Type

Time Period

Avocado

State

State & U.S.

No

MYA

Broilers

Weighted average by week

U.S.

No

Month

Citrus

By States

State

Grapefruit (white & color)
Lemons, Oranges
(navel & Valencia)
Tangerines, Tangelos

Month / MYA

Cotton

Weighted Average by State

State

Upland Cotton
Pima Cotton

Month / MYA

Date, Kiwi,
Olive

State

CA

No

MYA

Floriculture

15 states

State

No (except Hawaii)

MYA

Grain

Weighted Average by Strata
Many commodities collapsed.

State

Strata

Month / MYA

Grape

State

State

Raisin, Table, Wine,
Concord Juice, Niagara

Month / MYA

Honey

Color Class & Marketing
Channel

State

White, Amber, Dark,
Other, Coop, Private,
Retail

Full year prior
sales

Hops

Quantity & Value to calculate
average price

State

No

MYA

Market Eggs

Regional price based on AMS
data
Weighted by state level production

U.S.

Market and All

Month /

Mushroom

State

Chester County, PA
Region &
U.S.

Agaricus (CA, PA, WA)
Regional
(East, Central, West)
Brown,
Shiitake,
Oyster, All Other

MYA
Around Aug
20th

All Specialty
Peach & Pear
(Noncitrus)

States

State

Fresh Peaches
Fresh pears

Month / MYA

Peanuts

Weighted average by variety

State &
U.S.

Runner
Spanish
Valencia
Virginia

Weekly
Monthly
MYA

2T-30

USDA, National Agricultural Statistics Service

Table 2.14. Summary of Analysis by Commodity (cont.)
Peppermint /
Spearmint

Price data

State &
U.S.

Yes (WA by Native &
Scotch)

MYA

Potato

States (unique for each state)

State

None

Month / MYA

Rice

Weighted average by grain
length and State with no nonresponse

State &
U.S.

Short,
Medium,
Medium + Short
Long

Month / MYA

Sweet Potatoes

States (Unique for each state)

Program States

No

MYA

Tree Nuts

Unique by state and nut

Program States

Almonds, Hazelnuts,
Pistachio, Walnuts,
Macademia,
Pecans (improved, native)

MYA

Turkeys

Weighted average by week

U.S.

No

Month

Wrinkled
Seed Peas

States

U.S.

No

MYA

USDA, National Agricultural Statistics Service

2T-31

Table 2.15. Relative Weights of Commodities in the Indexes of Prices Received
By Farmers, Base Periods 1971-73 and 1990-92
-----------------------------------------------------------------------------------------------------------------------------------------Commodity
:
Relative Weights
:
Commodity
:
Relative Weights
and
: ------------------------------ :
and
:-------------- -------------Group
: 1971-73: 1990-92 3/ :
Group
: 1971-73: 1990-92 3/
-----------------------------------------------------------------------------------------------------------------------------------------:
Percent
:
:
Percent
Wheat
:
6.1
4.0
:
Green Peas 1/
:
.2
Rice
:
1.1
.7
:
Sweet Corn
:
.4
.4
Food Grains
:
7.2
4.7
:
Tomatoes
:
1.4
1.6
:
:
Broccoli 2/
:
.2
Corn
:
8.0
8.3
:
Cantaloupes 2/
:
.2
Oats
:
.4
.1
:
Cauliflower 2/
:
.2
Barley
:
.7
.5
:
Cucumbers 2/
:
.3
Grain Sorghum
:
1.6
.7
:
Snap Beans 2/
:
.3
All Hay
:
1.4
1.8
:
Commercial Vegetables :
4.1
5.1
Feed Grains and Hay
:
12.1
11.4
:
:
:
:
Dry Edible Beans
:
.4
.3
American Upland
:
2.9
2.8
:
Potatoes
:
1.4
1.3
Cotton
:
2.9
2.8
:
Potatoes and Dry Beans :
:
:
Beans :
1.8
1.6
Tobacco
:
2.4
1.7
:
:
:
:
All Other Crops 2/
:
7.5
Cottonseed
:
.5
.3
:
:
Peanuts
:
.8
.8
:
All Crops
:
44.2
48.4
Flaxseed 1/
:
.1
.1
:
:
Soybeans
:
7.8
6.4
:
:
Sunflowers 2/
:
.2
:
Beef Cattle
:
25.8
22.0
Oil-Bearing Crops
:
9.2
7.8
:
Calves
:
2.6
1.9
:
:
Hogs
:
8.8
6.7
Apples
:
1.1
1.2
:
Meat Animals
:
37.2
30.6
Grapefruit
:
.5
.3
:
:
Lemons
:
.3
.2
:
Milk, Wholesale
:
11.1
11.7
Oranges
:
1.5
1.2
:
Dairy Products
:
11.1
11.7
Peaches
:
.5
.3
:
:
Pears
:
.2
.2
:
Eggs
:
3.4
2.4
Strawberries
:
.4
.5
:
Broilers
:
3.1
5.4
Grapes 2/
:
1.4
:
Turkeys
:
1.0
1.5
Almonds 2/
:
.5
:
Poultry and Eggs
:
7.5
9.3
All Fruit and Nut
:
4.5
5.8
:
:
:
:
Livestock and
:
Asparagus
:
.2
.1
:
Livestock Products
:
55.8
51.6
Carrots
:
.3
.3
:
:
Celery
:
.3
.2
:
:
Lettuce
:
.9
.8
:
:
Onions
:
.4
.5
:
All Farm Products
:
100.0
100.0
--------------------------------------------------------------------------------------------------------------------------------------1/ Not included in the 1990-92 index.
2/ Not included in the 1971-73 index. All Other crops include greenhouse/nursery products, sugarbeets, sugarcane, and other specialty crops
3/ Simple average of 1990-92 for comparison purposes with the prior 1971-73 base price and weight period.

2T-32

USDA, National Agricultural Statistics Service

Table 2.16. Percent Coverage of Index Commodity Groups for Prior
Versus Revised Prices Received Indexes 1/
---------------------------------------------------------------------------------------------------------------------------Prior
Revised
% of Total
Commodity Groups
(1977=100)
(1990-92)
Cash Receipts 1/

(%)

(%)

All Crops
Food Grains
Feed Grains & Hay
Cotton
Tobacco
Oil-Bearing Crops
Fruits and Nuts
Commercial Vegetables
Potatoes & Dry Beans
Other Crops

73
100
100
100
100
98
51
52
100
0

86
100
100
100
100
100
74
66
100
50

48.4
4.7
11.4
2.8
1.7
7.8
5.8
5.1
1.6
7.5

Livestock & Products
Meat Animals
Dairy Products
Poultry & Eggs
Other Livestock

97
100
100
97
-

97
100
100
97
-

51.6
29.7
11.4
9.0
1.5

All Farm Products

85

91

100.0

---------------------------------------------------------------------------------------------------------- ------------------1/ Calculated using 1990-92 cash receipts.

USDA, National Agricultural Statistics Service

2T-33

Table 2.17.

1990-92 Base Price Period Weighted Average Prices Received

----------------------------------------------------------------------------------------------- ------------------------------------Commodity
Unit
Price
Commodity
Unit
Price
----------------------------------------------------------------------------------------------------------------------------- ----------Dollars

Dollars

WHEAT

(bu)

2.96

ALMONDS

(lb)

1.12

RICE

(cwt)

7.07

ASPARAGUS

(cwt)

65.70

CORN

(bu)

2.30

BROCCOLI

(cwt)

22.00

OATS

(bu)

1.22

CARROTS

(cwt)

10.10

BARLEY

(bu)

2.12

CAULIFLOWER

(cwt)

26.10

SORGHUM GRAIN

(cwt)

3.75

CELERY

(cwt)

11.60

HAY

(ton)

76.30

CUCUMBERS

(cwt)

12.60

COTTON, UPLAND

(lb)

0.606

LETTUCE

(cwt)

11.90

COTTONSEED

(ton)

96.00

ONIONS

(cwt)

11.50

TOBACCO

(lb)

1.74

BEANS, SNAP

(cwt)

13.90

FLAXSEED

(bu)

4.27

CORN, SWEET

(cwt)

5.91

PEANUTS

(lb)

0.304

TOMATOES

(cwt)

7.66

SOYBEANS

(bu)

5.61

CANTALOUPES

(cwt)

13.90

SUNFLOWER

(cwt)

9.50

POTATOES

(cwt)

5.82

APPLES

(lb)

0.151

DRY BEANS

(cwt)

19.10

GRAPEFRUIT

(box)

5.77

CATTLE

(cwt)

72.90

LEMONS

(box)

10.10

CALVES

(cwt)

94.30

ORANGES

(box)

5.79

HOGS

(cwt)

47.70

PEACHES

(lb)

0.155

MILK, WHOLESALE

(cwt)

13.06

PEARS

(ton)

292.00

BROILERS

(lb)

0.317

STRAWBERRIES

(cwt)

47.90

TURKEYS

(lb)

0.380

GRAPES

(ton)

305.00

CHICKEN EGGS

(doz)

0.643

--------------------------------------------------------------------------------------------------------------------------- -----------------

2T-34

USDA, National Agricultural Statistics Service

Table 2.18 Prices Received Monthly Marketing for Index Commodities
United States:1990-1992 Average
----------------------------------------------------------------------------------------------------------------------------------------------------JAN

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

---------------------------------------------------------------------------------------------------------------------------------------------------------------------WHEAT
9
5
5
4
5
14
17
11
9
7
6
8
RICE
12
10
10
8
7
6
6
7
8
9
9
8
CORN
13
7
7
6
6
6
6
6
8
14
12
9
OATS
7
6
6
6
6
7
20
20
9
5
4
4
BARLEY
10
6
7
5
5
6
7
17
11
8
9
9
SORGHUM GRAIN
11
5
5
3
3
4
9
8
7
20
14
11
HAY
8
7
7
6
7
11
12
10
9
8
7
8
COTTON, UPLAND 15
8
6
4
3
2
2
3
6
13
19
19
COTTONSEED
4
2
0
0
0
0
0
3
6
25
38
22
TOBACCO
12
2
1
1
0
0
5
18
19
13
11
18
PEANUTS
1
0
0
0
0
0
0
1
36
48
11
3
FLAXSEED
6
4
5
4
3
4
3
10
29
21
7
4
SOYBEAN
12
6
7
5
5
5
5
5
8
25
10
7
SUNFLOWER
9
7
7
4
3
6
4
3
6
28
14
9
APPLES
9
8
9
8
6
5
3
4
11
14
13
10
GRAPEFRUIT
13
19
20
11
6
2
2
2
2
6
8
9
LEMONS
9
8
9
8
9
8
8
7
6
9
9
10
ORANGES
18
11
9
13
12
4
2
2
2
3
8
16
PEACHES
0
0
0
0
12
21
27
26
14
0
0
0
PEARS
8
8
6
6
4
2
7
14
7
14
14
10
STRAWBERRIES
3
5
12
19
20
13
10
7
5
3
2
1
GRAPES
1
0
0
0
3
9
16
21
18
15
12
5
ALMONDS
8
8
8
8
8
8
8
9
9
9
9
8
ASPARAGUS
1
6
24
30
21
13
2
1
1
1
0
0
BROCCOLI
8
8
8
10
10
10
8
7
7
8
8
8
CARROTS
8
8
10
10
9
9
8
7
7
8
8
8
CAULIFLOWER
7
6
8
9
11
9
8
7
8
11
10
6
CELERY
8
7
9
8
9
9
7
7
7
9
11
9
CUCUMBERS
2
1
4
11
17
12
8
11
11
10
9
4
LETTUCE
8
7
8
9
10
9
8
9
8
9
7
8
ONIONS
9
8
6
6
7
8
9
9
9
11
9
9
BEANS, SNAP
5
6
8
10
14
9
6
9
7
9
10
7
CORN, SWEET
1
1
2
6
18
12
14
23
16
4
2
1
TOMATOES
6
5
8
9
12
7
11
9
8
8
9
8
CANTALOUPES
0
0
0
0
26
39
16
6
4
6
3
0
POTATOES
7
7
8
8
8
6
4
7
14
16
8
7
DRY BEANS
9
6
6
6
6
5
4
5
18
17
10
8
HORTICULTURAL
8
8
9
9
9
9
8
8
8
8
8
8
SUGAR BEETS
9
8
8
8
8
8
8
8
8
9
9
9
CANE FOR SUGAR
9
9
8
8
8
8
8
8
8
8
9
9
MUSHROOMS
9
9
8
8
8
8
8
8
8
8
9
9
CATTLE
9
8
8
8
8
8
8
9
8
10
9
7
CALVES
8
7
8
7
6
6
6
9
10
14
12
7
HOGS
9
8
9
8
8
8
8
8
9
9
8
8
MILK, WHOLESALE 8
8
9
9
9
9
8
8
8
8
8
8
---------------------------------------------------------------------------------------------------------------------------------------------------------------------

USDA, National Agricultural Statistics Service

2T-35

Table 2.19 Revised and Prior Prices Received Indexes
Relative Weights of Component Indexes

Commodity Groups

Prior Base
Period
(1971-73)
(%)

Revised Base
Period 1/
(1990-92)
(%)

5-Year Moving Average Weights: 2/
1990
1995
2000
2005
2010
(%)

All Crops
Food Grains
Feed Grains & Hay
Cotton
Tobacco
Oil-Bearing Crops
Fruits & Nuts
Commercial Vegetables
Potatoes & Dry Beans
Other Crops

44.2
7.2
12.1
2.9
2.4
9.2
4.5
4.1
1.8
0

48.4
4.7
11.4
2.8
1.7
7.8
5.8
5.1
1.6
7.5

47.0
5.4
10.6
2.4
1.5
8.4
5.4
5.2
1.4
6.7

47.7
4.8
11.0
2.7
1.6
7.2
5.8
5.4
1.6
7.6

52.2
5.2
12.4
2.9
1.3
8.3
6.0
6.0
1.6
8.5

48.9
3.5
11.0
1.8
1.0
7.2
6.4
6.6
1.5
10.0

53.5
5.4
15.9
1.6
0.4
8.2
6.5
5.6
1.4
8.5

Livestock & Products
Meat Animals
Dairy Products
Poultry & Eggs

55.8
37.2
11.1
7.5

51.6
30.6
11.7
9.3

53.0
30.8
30.8
8.9

52.3
30.6
30.6
9.7

47.8
24.6
11.8
11.4

51.1
27.1
11.8
12.2

46.5
23.8
10.9
11.8

100.0

100.0

100.0

100.0

100.0

100.0

100.0

78.8

77.1

74.9

76.3

73.6

All Farm Products
Food Commodities 3/

--------------------------------------------------------------------------------------------------------------------------------------------------------1/ Weights represent simple 3-year averages for 1990-92 base price period for comparison purposes with 1971-73, prior base
price and weight period.
2/ Examples of 5-year moving weights for constructing 1990-92=100 index numbers. Weights used for 1995 based upon
1989-1993 cash receipts, weights for 1990 based upon 1984-88 cash receipts, etc.
3/ Food Commodities include components, Food Grains, Oil Crops, Fruit & Nuts, Commercial Vegetables, Potatoes & Dry
Beans, Meat Animals, Dairy Products and Poultry & Eggs.

2T-36

USDA, National Agricultural Statistics Service

Glossary of Selected Terms

Advance Recourse Loan
A price-support loan made early in a crop year that enables a farmer to hold his crops for later sale,
usually within the marketing year. Farmers must repay the loan with interest and reclaim their collateral.
Agribusiness
Producers and sellers of agricultural food, fiber, and services. Agribusinesses include manufacturers, processors, wholesalers, dealers, transporters, marketers, and retail outlets.

Agricultural Commodity
Any plant or part of a plant, or animal or part of an animal product, produced by a person primarily for sale, consumption, propagation or other use by humans or animals.
Agricultural Marketing Service (AMS)
A USDA agency that sets standards for grades of cotton, tobacco, meat, dairy products, eggs,
fruits, and vegetables; operates grading services; and administers Federal marketing orders.
Agricultural Production
The classification of agricultural production includes: establishments (farms, ranches, dairies, orchards, nurseries, greenhouses, etc.) primarily engaged in the production of crops, plants, vines, or trees
(excluding trees for lumber production) and the keeping, grazing or feeding of livestock or livestock products for sale. Livestock include cattle, sheep, goats, hogs, and poultry. Also, included are animal specialties
such as horses, rabbits, bees, fur bearing animals and fish in captivity. The classification includes establishments engaged in the production of bulbs, flower seeds, vegetable seeds, and also specialty operations
such as sod farms, mushroom cellars, and cranberry bogs.
Agricultural Options
A marketing tool using the Chicago Board of Trade options market, whereby a producer has the
opportunity to increase his price if the futures market moves above a predetermined price level, known as a
strike price.
Agricultural Policy
A broad term used to encompass those government programs most directly affecting the prices and
incomes received by farmers.
Agricultural Statistics Board (ASB)
A selected panel from the National Agricultural Statistics Service (NASS) staff dedicated to
providing effective and efficient review of statistics covering all aspects of U.S. agriculture. The ASB acts
on behalf of the Secretary of Agriculture.
USDA, National Agricultural Statistics Service

2G-1

Air Cured
Drying and curing tobacco either outside or in a tobacco barn with natural air.
American Farm Bureau
A farmer organization founded in the early twentieth century for the purpose of protecting the economic interests of farmers and ranchers.
American Pima Cotton
An extra long staple cotton formerly known as American Egyptian cotton in the U.S., grown chiefly in California, along with some acreage in Arizona, New Mexico, and Texas. Represents only 2 percent
of the U.S. cotton crop. Used chiefly for thread and high valued fabrics and apparel. Developed as the Sea
Island cotton became extinct in the U.S.
Artichokes
A thistle like, herbaceous perennial, cynara scolymus, also known as the globe artichoke. Common
United States varieties/types: Green Globe (year round, peak spring), Desert Globe (Dec Mar, Jul Sep),
Big Heart (year round, lull in April), Imperial Star (year round, peak spring).
Asparagus
A hardy perennial of the Lily family that grows best in cool spring temperatures after having experienced a dormant or resting period. Commercial fields produce for 15 to 18 years with the best crops taken from 5 to 10 year old plants.
Auction
A public sale of assets or commodities through competitive bidding to the highest bidder.
Auction Barn
A facility for gathering livestock or other commodities for sale by auction. The auction bidding
and sale are conducted at the facility. Also, referred to as Sale Barn.
Auction Pool
A cooperative method of marketing where individually owned products are pooled and sold to the
highest bidder.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
ABARES is a research bureau within the Department of Agriculture, Fisheries and Forestry that
provide research and analysis about Australia's primary industries.
Backfat
The amount of fat covering on the back of a live animal or a carcass. The measurement is usually
taken over the ribs and is used to determine yield grade.

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Balance of Trade
The difference between the amount of exports and imports. The balance is positive if exports exceed imports or negative when imports exceed exports.
Balance Sheet
A list of assets and liabilities in dollar terms to show the equity or net worth of an individual or
business.
Barrel (Bbl.)
A volume unit of measure, used as a standard for selling and trading certain commodities in certain areas of the country.
Barrow [Hogs]
A male hog who was castrated before reaching breeding age and before the development of secondary sex characteristics.
Base period
The base period generally is understood to be the period with which other periods are compared and whose
value provide the weights for a price index. However, the concept of the “base period” is not a precise one
and may be used to mean the different things. Three types of base periods may be distinguished:
The price reference period, that is, the period whose prices appear in the denominators of the price
relatives used to calculate the index, or
The weight reference period, that is, the period, usually a year, but a month for price received index, whose values serve as weights for the index. However, when a hybrid expenditure weights are
used in which the quantities of one period are valued at the prices of some other period, there is no
unique weight reference period, or
The index reference period, that is, the period for which the index is set equal to 100.
Basis
The difference between two prices, such as a commodity cash price and its futures price assuming
the same quality standards. Basis reflects the marketing costs of storage, transportation, and supply and
demand.
Beans, Lima
Lima beans are grown for fresh market and processing. Pole beans and Speckled butter beans are
not included. Varieties/types: Butter, potato. The National vegetable program estimates only processing
utilizations as of crop year 2002.

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Beans, Snap
Snap beans are also known as green beans, bush beans, and pole beans. Wax beans are included.
Varieties/Types: Snap Beans; (round, also known as string beans), Green Beans; Triumph, Opus, Podsquad, Strike, Bronco, and Prosperity (yearround, peak Apr Jun); Yellow Wax; Golden Rod, Gold Rush,
Klondyke (Oct Jun), Pole Beans; Dade, 42s, 191 (year round).
Beef Cattle
Any breed of cow, heifer, bull, or steer raised primarily for meat consumption.
Beef Cows
Cows, regardless of breed, kept primarily to raise or nurse calves.
Board Estimate
The official measure of the actual quantity or value of an item as derived from sample data or administrative data and approved by the Agricultural Statistics Board.
Board of Trade
See "Chicago Board of Trade."
Breed
Animals having a common origin and distinguishing characteristics.
Broccoli
A cole crop derived from a species of wild cabbage. Through cultivation two types of broccoli
have evolved, common broccoli and sprouting broccoli. Common broccoli was developed to have a dense
central flowering head on a thick stem. Sprouting broccoli is a wild looking form that has loose, leafy
stems and edible flower shoots but no central head. Exclude broccoli rabe or heading (cauliflower) broccoli.
Bushel (Bu.)
A volume unit of measure, often used as a standard for selling and trading crop commodities. In
practice, commodities are traded on a weight basis whereby, a USDA standard weight and moisture content representing a bushel has been established for each commodity.
Cabbage
Cabbages belong to the mustard family and are related to broccoli, cauliflower, and other vegetable crops in the Brassica genus. Types included in the cabbage estimates are domestic, Danish, Dutch,
Pointed, Red and Savoy types. Estimates do not include Chinese cabbage. Cabbage for fresh market includes cabbage that has been sliced or chopped for salad or slaw. Cabbage for kraut is only to include the
cabbage used to make sauerkraut.
Calf
Any young cattle weighing less than 500 pounds.
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Cantaloups
Cantaloups is one of the botanical varieties of muskmelons. Casaba, Crenshaw, Honeyball, Persian
and Santa Claus are not included in cantaloup estimates. Honeydews are estimated separately. Varieties/Types: Hale‟s Best, Hymark, Mission.
CAPI
Computer Assisted Personal Interviewing is when an interviewer records the answers from a respondent using a computer during a personal visit.
Carrots
Biennials grown as annuals. Most commercial carrots are long, slender, and tapered. Crops may be
handled as topped, short trimmed tops, or bunched with entire top. Carrots that have been trimmed and
sold as "baby" carrots or that were sliced for salad trays, etc. are to be included as fresh. Separate acreage,
yield, production, price and value are required for processing carrots.
Cash Price
The actual price paid for an item, less any discounts or rebates.
Cash Grain Farm
A farm on which corn, grain sorghum, small grains, soybeans, or field beans and peas account for
at least 50 percent of the value of products sold.
CATI
Computer Assisted Telephone Interviewing is when an interviewer records the answers from a respondent over the telephone using a computer.

Cattle on Feed
Cattle or calves for slaughter market on full feed and expected to produce a carcass grading select
or better.
Cauliflower
Cauliflower grows on short, cabbage like plants that form large, flat central clusters of flower buds
called curds. Varieties/Types:
Early Producing Early Snowball, Super Snowball, Midseason Snowdrift, Danish Giant.
Later Producing Veitch, Autumn Giant.
As the cauliflower head begins to form, field workers bunch the leaves around the head, using rubber
bands, to prevent sunlight from yellowing the white cauliflower.

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CCC Stocks
Grains and oilseeds forfeited to the USDA Commodity Credit Corporation (CCC) as repayment of
nonrecourse marketing loans. Producers may pledge their production as collateral to the CCC to obtain
nonrecourse marketing loans. Producers may forfeit the commodity as repayment of the loan.
Celery
A bushy, mounded plant grown year round. Crop estimated includes pascal, golden, Utah types
and celery hearts. Celery is boxed in the field as it is harvested. Some of the celery are bagged in plastic
and some are simply banded with rubber bands and boxed.
Chain Index
An index number derived by relating the value at any given period to the value in the previous period rather than to a fixed base.

Chain Weighted Index
The chain weighted CPI incorporates changes in both the quantities and prices of products. For example, let's examine clothing purchases between two years. Last year you bought a sweater for $40 and
two t-shirts at $35 each. This year, two sweaters were purchased at $35 each and one t-shirt for $45.
Standard CPI calculations would produce an inflation level of 13.64%
((1 x 35 + 2 x 45)/ (1 x 40 + 2 x 35)) =1.1364.
The chain weighted approach estimates inflation to be 4.55%
((2 x 35 + 1 x 45)/ (1 x 40 + 2 x 35)) =1.0455.
Using the chain weighted approach reveals the impact of a customer purchasing more sweaters
than t-shirts. The chain weighted CPI incorporates the average changes in the quantity of goods purchased,
along with standard pricing effects. This allows the chain weighted CPI to reflect the expenditures change
of customers shifting the weight of their purchases from one area of spending to another.

Check Data
Information derived from inspections, marketings, acreages contracted or certified, assessments,
ginnings, and other sources that have some direct relation to a commodity and can be used, with varying
degrees of confidence, to supplement survey data in the preparation or revision of estimates.
Check Off
A fee collected on each unit of a commodity going to market. Fees collected are administered by a
producer selected board, usually to fund research and promotion of products made from the commodity.
Chicago Board of Trade (CBOT)
A commodity exchange specializing in trading grain's futures contracts. The CBOT is located in
Chicago, IL.
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Chicken Market Year
The average price received by farmers from December of the precious year through November of
the current year.
Chicken Prices
Price of mature hens and roosters sold for slaughter from egg laying flocks. Price represents a
liveweight basis.
C.I.F.
Abbreviation for Cost, Insurance, and Freight.
Cigar Binder
A type of tobacco, usually broadleaf used to bind the filler portion of cigars.
Cigar Filler
Tobacco leaves placed in the core of a cigar. The leaf fragments are as long as the cigar in superior
brands and short or shredded in low priced cigars.
Cigar Wrapper
A shade grown tobacco leaf of the Cuban variety tobacco group used as the outside wrapper of cigars. Plants are shaded by a screen of open mesh cotton fabric during growth to protect the leaves from
getting holes.
Coefficient of Variation (CV)
Is the ratio of the standard deviation to the mean.
Commission Charges
Charges levied by a commission firm to the seller of the livestock. Charges are for freight, yardage, feed, and the collection of payment from the purchaser. It is generally a percentage of the gross value
of sale.
Commission Firm
A firm through which sellers can introduce their livestock into a terminal market. The firm collects
a fee for each animal sold and does not take title to the livestock.
Commodity
Any agricultural or agricultural by-product available for sale.
Commodity, Contract
The crop specified in the production flexibility contract. Eligible commodities are wheat, corn,
sorghum, barley, oats, Upland cotton, and rice.
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Commodity Credit Corporation (CCC)
A government owned and operated entity created to stabilize, support, and protect farm income
and prices. CCC helps maintain balanced and adequate supplies of agricultural commodities and in their
orderly distribution. It aides producers through loans, purchases, payments, and other operations, and
makes available materials and facilities required in the production and marketing of agricultural commodities. CCC also is authorized to sell agricultural commodities to other government agencies or foreign governments, and make food donations to domestic, foreign, or international relief agencies. It assists in the
development of new domestic and foreign markets and marketing facilities for agricultural commodities.
Commodity Exchange
A brokerage house specializing in the trading of commodity futures contracts.
Commodity Futures Trading Commission (CFTC)
An independent government commission which regulates commodity trading at U.S. futures exchanges. CFTC also regulates the activities of numerous commodity exchange members, public brokerage
houses, commodity trading advisors, and commodity pool operators.
Confidentiality
The assurance from NASS to respondents, backed by Federal law, that individual information collected on authorized USDA surveys will not be released to any person, organization or institution, including court subpoenas.
Contract
A binding agreement, either written or verbal, between the farm operator (contractee) and another
party (contractor) specifying one or more conditions for the production and/or marketing of a farm commodity.
Contractee or Contract Grower
A person who is responsible for producing or raising a contractor's commodity (poultry, livestock,
crops) for a fee or other financial considerations.
Contractor
A person or firm offering a contract agreement to a producer (contractee). The contractor typically
owns the commodity (crop, poultry, or livestock), and may supply the feed, medicine and other such items,
but does not care for the commodity.

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Contract Production
Producing crops or livestock under an agreement where the owner of the commodity (contractor)
supplies some or most of the inputs for production and the farmer (contractee) usually provides inputs such
as labor, utilities, housing, machinery, and/or equipment. The contractee is limited in the control over the
amount produced and the production practices used. Usually, the contract is established at the beginning of
the production cycle for a given number of acres, or number of animals or birds. The contractee has a minimum amount of risk since the amount of payment to be received is agreed upon prior to or during the production period. The contractee does not receive the commodity‟s full market value and may have quality
or other adjustments.
Contract Sale
A sale negotiated for a future date. May be based on the delivery date market price or a predetermined price.
Control Data
Information on file about individual farm or ranch operations which defines the type and size of
the operation, i.e. acres of cropland, grain storage capacity, livestock numbers by species, etc.
Cooperative
A voluntarily organized association controlled by its members or patrons. Individuals pool their
resources and share in the profits.
Corn (Maize) for Grain
An annual stemmed cereal plant that can grow to 7 or 8 feet tall with one or two large grain ears
pollinated from tassels. Corn produces many more bushels of grain per acre than any other feed grain. It is
used as a food crop, animal feed, and as a source of oil, syrup, ethanol, and other products. Corn, grown
throughout the country, requires good soil and large amounts of water making the Midwest the best producing area. It also requires a large amount of fertilizer, more than any other crop, particularly nitrogen.
Corn, Sweet
Estimates exclude field corn used for table use but include yellow, white and bicolor sweet and
supersweet varieties. Exclude ornamental corn and popcorn.
Cotton
A soft, white vegetable fiber obtained from the seed pod of the cotton plant. The two principal
types of cotton grown in the United States are Upland cotton and American Pima cotton.
Cotton Board
A quasi government organization whose members are appointed by the Secretary of Agriculture
from nominees of cotton producer organizations. The board receives and disburses grower assessments to
finance the Cotton Incorporated program.

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Cotton Compress
The equipment which forms the ginned raw cotton into a bale. The first compression, primarily to
modified flat or universal bale dimensions, is performed at the gin. Further compression of flat or modified
flat bales is performed at cotton warehouse locations.
Cotton Council
See National Cotton Council of America.@ http://www.cotton.org/
Cotton Council International (CCI)
The overseas operations of the National Council of America. The CCI‟s primary objective is to
develop markets for U.S. exports.
Cotton Exchange
A membership organization which provides facilities where cotton futures contracts are bought
and sold.
Cotton Gin
A machine that separates cotton fibers from the seed on which they were produced.
Cotton Incorporated
A private corporation acting as the marketing and research organization representing United States
cotton growers.
Cotton Quality
Three major components of cotton quality, grade, staple and micronaire, are included in official
USDA cotton quality classifications. Added fiber properties, including length, uniformity, and strength, are
also recognized as important and are increasingly being measured by instrument testing. Grade depends on
the color, trash content, and preparation (smoothness) of the cotton sample.
Cotton Staple
Used in reference to the length and fineness of cotton fiber.
Cottonseed
Seed of cotton with the lint removed. Cottonseed oil is extracted from the seed through a crushing
process. The residue (cottonseed cake or meal) is used as livestock feed.
Counter Cyclical Payments
The Farm Bill added Counter Cyclical Payments, which provide support counter to the cycle of
market prices as part of a "safety net" in the event of low crop prices. Counter Cyclical Payments for a
commodity are only issued if the effective price for a commodity is below the target price for the commodity.

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Cow
Female bovine that has had at least one calf.
Cow-Calf
A cow with nursing calf.
Crop Insurance
Farmers select from various types of insurance policies to partially protect their income. One
common type of policy helps minimize losses due to natural causes such a drought, excessive moisture,
hail, wind, frost, insects, and disease. The farmer selects the amount of average yield to insure (usually 50
to 75%) and can select the percent of the predicted price he or she wants to insure (usually 55 to 100% of
the crop price established annually by the Risk Management Agency). Expected or projected price quarantees are finalized by the USDA Risk Management Agency (RMA) on March 1. If the harvest is less than
the yield insured, the farmer is paid an indemnity which is calculated by multiplying the yield difference
by the insured percentage of the price selected when the insurance was purchased.
Cucumbers, Fresh Market
Closely related to the melon. There are two classes of cucumbers, one for fresh market consumption and one for pickling. The slicing or table type is the fresh market cucumber. It can, especially in larger
sizes, also be used for pickling. Only those sold for fresh market should be counted as fresh market. Do not
include greenhouse production. Varieties/Types: The most popular slicing varieties include Dasher II, Hybrid Ashley, Palomar, Long Market, Marketmore, Poinsett, Straight Eight, Cherokee 7, Speedway, Gemini, and High Mark II.
Cucumbers for Pickles
Processing estimates are made for pickled cucumbers only. Generally, special varieties are grown
for pickles but some fresh market varieties are used. Pickles are made by three processes: 1) refrigeration,
2) fermentation or 3) pasteurization. Overnites are included in pickle estimates. Overnites are partially
fermented about 2 days as salt stock, and then placed under refrigeration until sold. These are generally
made from the same pickling varieties as other pickles. Fresh market slices are sometimes used for overnites in certain supply price situations. Cucumbers processed in any other way are not considered pickles.
Cwt.
Abbreviation for Hundredweight or 100 pounds.
Dairy
Businesses related to the production, processing, or distribution of milk and its products. Specifically, can refer to a plant in which milk is processed and where dairy products are manufactured and sold.
Dairy Cattle
Cattle kept specifically for the production of milk used for sale or home use.

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Dairy Herd Improvement Association (DHIA)
A cooperative organization of approximately 25 or more farmers. Its purpose is the testing of dairy
cows for milk and fat production and recording feed consumed.
Data Collection
The process of completing interviews or field counts, or otherwise accounting for (refusal, inaccessible, out of business) all selected sample units in a survey.
Date, Due - [Enumerators]
The date assigned materials must be received in the State office.
Date, Due - [State office]
The date assigned materials must be received in Headquarters.
Date, Reference
The date used as a reference point for asking respondents survey questions.
Date, Release
The date survey results are published and released. See the NASS Webpage for a calendar of report release dates.
DCP Program (Direct and Counter cyclical Program)
There are two types of DCP payments: direct payments and counter cyclical payments. Both are
computed using the base acres and payment yields established for the farm.
Dealer
A person or firm buying commodities for speculative purposes. The commodities are for immediate resale and usually held for only a short time. Dealer takes title to the commodity.
Delayed Pricing (Priced Later or Deferred Price) Contracts
A delayed price contract usually requires delivery at harvest time. The purchase price, however, is
not determined until the farmer is ready to sell, which could occur several months later. This is different
from storing grain at the elevator for sale at a later date, because the farmer gives up title/ownership when
a delayed price contract is entered into. For this option, the producer is normally assessed a monthly per
bushel fee by the elevator until the sale price is determined. Some producer risk is involved should the firm
go into bankruptcy, since the grain is now titled in the name of the elevator.

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Direct Expansion
An estimator obtained by multiplying the sample data by the reciprocal of the probability of selecting the sample unit. The summation of expanded data for all selected sampling units is the direct expansion
of the population.
Direct Payments
The 2008 Farm Bill provides direct payments for the following eligible commodities:
Barley

$0.24 per bushel

Corn

$0.28 per bushel

Oats

$0.024 per bushel

Other Oilseeds

$0.80 per Cwt.

Peanuts

$36 per ton

Rice

$2.35 per Cwt.

Grain Sorghum

$0.35 per bushel

Soybeans

$0.44

Upland Cotton

$0.0667 per pound

Wheat

$0.52 per bushel

For each commodity, the direct payment for each crop year equals 85 percent of the farm‟s base
acreage times the farm‟s direct payment yield times the direct payment rate. Direct payments are subject to
change with each Farm Bill.
Discount
[Buyer] A deduction from an original price or debt, allowed for paying promptly or in cash.
[Seller] A deduction from the market price for poor quality or less than market standard commodities. Price adjustments (to posted elevator board prices) may be made for grain of high or low quality. Deductions are often made for moldy, sprouted or light test weight grain.
Dockage
Foreign material in marketable grain which is easily removed by normal cleaning methods.
Dressed Weight
The weight of an animal carcass after slaughter but before cutting into retail cuts.
Dressing Percent
The percentage which the dressed weight is of the live weight.
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Dressed weight / Liveweight = Dressing Percent
Dry Cow
A cow which has ceased to give milk from one lactation and is probably within 60 days of calving
and beginning another lactation.
Economic Research Service (ERS)
A USDA agency that is an important user of NASS data. ERS studies various topics related to agriculture and issues research publications and commodity outlook and situation reports.
Editing
Reviewing entries for reasonableness. Unusual but correct responses should be flagged and explained with notes indicating it was verified with the respondent. With impossible data relationships,
probe for the correct responses.
Effective Price
The higher of the loan rate or the Market Year Average (MYA) price.
Elevator
A business which buys grain from the farmers, and has facilities for the handling and storage of
grains, dried beans, and other seed crops.
Enumerator
A person trained to conduct interviews or make field counts and record the information gathered in
the interviews or counts.
Equivalent Liveweight Price
The equivalent liveweight price is derived from the whole bird, ready to cook (RTC) price.
Equivalent Return
Adjustment made in actual data reported to generate an equal value for another item or commodity
or to shift to a point of sale different from the reported one. An example is FOB shipping point to packinghouse door.
Estimate
An approximate measure of the value of an item, usually derived from sample data or administrative data.
Eurostat
Eurostat is the statistical office of the European Union situated in Luxembourg. Its task is to provide the European Union with statistics at European level that enable comparisons between countries and
regions.
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Extra Long Staple Cotton (ELS)
Cottons having a staple length of 1½ inches or more, according to the classification used by the International Cotton Advisory Committee (ICAC). Also characterized by fineness and high fiber strength,
contributing to finer and stronger yarns, needed for certain end uses such as thread and higher valued fabrics. United States types include American Pima and, formerly, Sea Island cotton.
Farm Price
The price a farmer receives for products sold at the point of first sale.
Farm Service Agency (FSA)
An Agency of the USDA which administers farm commodity and conservation programs for
farmers and makes loans. FSA programs are primarily directed at agricultural producers or, in the case of
loans, at those with farming experience.
Farmer
See "Operator."
Farmer Owned Reserve
Government program designed to provide protection against wheat and feed grain production
shortfalls and provide a buffer against unusually sharp price movements. Farmers place their grain in storage and receive extended nonrecourse loans for 3 years, with extensions as warranted by market conditions. Interest on the loan may be waived, and farmers may receive annual storage payments from the
Government. Grain cannot be taken out of storage without penalty unless the market price reaches a specified release price. When the release price is reached, grain may be removed from the reserve but it is not
required.
Federal Crop Insurance
A voluntary risk management tool for farmers to protect them from the economic effects of unavoidable adverse natural events. Administrative costs are appropriated by the Congress and a portion of the
insurance costs are federally subsidized.
Federal Crop Insurance Corporation (FCIC)
A wholly owned Federal corporation within USDA that administers the Federal Crop Insurance
Program.
Federal Grain Inspection Service (FGIS)
A USDA agency that establishes official United States standards for grain and other assigned
commodities and administers a nationwide inspection system to certify those grades.
Feed Grain
Any of several grains commonly used for livestock or poultry feed, such as corn, sorghum, oats
and barley.
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Fire Cured
A method of curing tobacco leaves by using open fires in the tobacco barn. The leaves are exposed
to the fire's smoke while drying.
Fixed Weight Aggregative Index
This index concentrates on measuring price changes from a base year. It is called a base weighted
index due to the use of quantities purchased in the base year (1990) to weight the unit prices in both years.
By keeping the quantities constant, the change in the calculated expenditure is due solely to price change.
Flue Cured
A method of curing tobacco leaves in which tobacco barns are heated through ducts or flues. The
tobacco leaves are not exposed to smoke while drying.
Flat Price Contract
An agreement where all parts of the pricing contract have been settled.
FOB (Free On Board)
Used in quoting prices of goods at a certain location. Prices do not include transportation costs.
FOB Destination
A business agreement where the seller retains title of the goods until they are delivered. The seller
selects the carrier and is responsible for the risk of transportation.
FOB Origin
A business agreement where the producer or handler is responsible for assembling and loading the
cargo onto transportation that has been arranged and paid for by the receiver. The receiver takes title to the
goods at the point of origin as they are loaded for transport.
Fluid Milk
The fluid product of a dairy farm or factory in contrast with the more solid products, such as
cream, cheese, and butter.
FDA
Acronym for Food and Drug Administration.
Food Grain
Cereal seeds most commonly used for human food, chiefly wheat and rice.
Forward Contract
Selling and pricing procedure where the price received by the farmer is determined at the time the
contract is made, with delivery to be made at a specified later date.
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Forward Pricing
Contracting or agreeing with an input provider to purchase a given quantity of supplies at a given
price.
Free of charge
An arrangement where a producer may use a resource owned by someone else and not have to pay
for its use.
Fresh Vegetable
A vegetable is considered fresh if it is sold to the consumer in an unaltered state. However, lettuce
that is picked, shredded, and bagged in the field is considered fresh.
Full Price
This includes all current and any future payments resulting from the grain sale.
Futures Contract
An agreement between two people, one who sells and agrees to deliver and one who buys and
agrees to receive specific kinds and amounts of a particular commodity at a specific time, place and price.
Futures Market
The formal marketing system that lets farmers promise to deliver or purchase commodities at a set
price.
Grade
[Livestock] An animal not eligible for registration; however, one or both of its parents may be
purebred.
[Marketing] Various methods of classifying commodities as defined by industry standards; examples, according to type, use, fineness of fiber, amount of fat, etc.
Gross Value
Value of a commodity after adjusting for discounts and premiums, not including deductions for
handling, cleaning (except dry edible beans), storage, grading, drying, etc.
Harmonized index of consumer prices
The harmonized index of consumer prices (HICP) is an economic indicator constructed to measure
the changes over time in the prices of consumer goods and services acquired by households. The HICP
gives comparable measures of inflation in the euro-zone, the EU, the European Economic Area and for
other countries including accession and candidate countries. The HICP is calculated according to a harmonized approach and a single set of definitions. The HICP provides the official measure of consumer price
inflation in the euro-zone for the purposes of monetary policy in the euro area and assessing inflation convergence as required under the euro convergence criteria (also known as Maastricht criteria).
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Hay
A crop which has been cut and cured by drying for storage; principally legumes, grasses, or grain
crops.
Headquarters
The National Agricultural Statistics Service (NASS) HQ is located in Washington D.C. NASS HQ
coordinates the operations for collecting data and publishing estimates for agriculture.
Hedging
In the futures market, the execution of opposite sales or purchases of contracts to offset purchases
or sales of commodities. This practice gives some protection to sellers and buyers of grain against uncertainties that are the result of unstable grain prices.
Heifer
Female bovine that has never given birth.
Honeydew Melons
Total crop is classified as fresh. Honeydew is one of the botanical varieties of muskmelons. Estimates do not include Casaba, Honeyball, Persian or Santa Claus production. Cantaloups are estimated separately.
Identical Ratio (or Current / Current Ratio)
A survey indication which measures change from the previous survey period. It is obtained by dividing the currently reported data by data reported for the same reporting unit in the preceding survey.
Index Formulas

Elementary price index Formula
Specially, an elementary price index is a price index for an elementary aggregate. As such, it is
calculated from individual price observations and usually without using weights. Three examples of elementary index number formulas are the Carli, the Dutot, and the Jevons.
Carli (1804) suggested price index as an arithmetic mean of the price relative

PCA ( p0 , pt )

1
n

n

pi ,t

i

pi , 0

Dutot (1738) suggested price index as a ratio of average prices

PDU ( p0 , pt )

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i

pi ,t n

i

pi , 0 n

USDA, National Agricultural Statistics Service

Jevons (1865) proposed a simple geometric mean index
n

pi ,t

i

pi , 0

PJE ( p0 , pt )

1n

Laspeyres price index
A price index defined as a fixed-weight, or fixed-basket, index that uses a basket of goods and services for the base period. The base period serves as both the weight reference period and the price reference period. It is identical with a weighted arithmetic average of the current to base period price relatives
using the value shares of the base period as weights, also called a “base-weighted index.” It is defined as

PL ( pt , p0 )

i

pti q0i

i

p0i q0i

pti i
w0 , where w0i
i
p0

i

p0i q0i
pi qi
i 0 0

Lowe price index
A basket-type family of price indices that compares the prices of period t with those an earlier period 0, using a certain specified quantity basket qn, where qn is between period t and period 0.

p t qn

PLO

p 0 qn

The family of Lowe indices includes, for example, the Laspeyres index (qn = q0) and Paasche index (qn = qt).
Paasche price index
A price index defined as a fixed-weight, or fixed-basket, index that uses a basket of goods and services for the current period. The current period serves as the weight reference period and the base period
as the price reference period. It is identical with a weighted harmonic average of the current to base period
price relatives using the value shares of the current period as weights, also called a “current weighted index.” It is defined as

PP ( pt , p0 )

piqi
i t t
i

USDA, National Agricultural Statistics Service

p0i q ti

i

pti
p0i

1

1

wti

, where wti

pti qti
.
i i
p
q
i t t

2G-19

Rothwell Formula
The formula for constructing the seasonal baskets in NASS prices received index is a variant of the Rothwell formula. Doris Rothwell, an economist with the U.S. Bureau of Labor Statistics, proposed it in a
1958 paper for the U.S. consumer price index (CPI). However, the formula was originally proposed in
1924 by two economists with USDA, Louis H. Bean and O. C. Stine, as an index number for farm prices.
Thus the formula adopted for constructing seasonal baskets was originally designed as an indicator of farm
price movements.
The Rothwell formula is defined as:

p yj,m qcj,m

Py ,m 0
where p0j

p0j qcj,m
12
m 1

p0j,m qcj,m

12
m 1

qcj,m .

In the above formula,
is the price of the jth commodity for the mth month of year y, is its price in
base year 0, and
is its quantity sold in the mth month of the basket reference period c.

Index Numbers
A computed number measuring the relative change in the price of items included in the specific
index from some base period. As an example, a price index for feed items of 250 (based on 1967=100)
implies the current aggregated price for the items included in this feed index cost 2.5 times as much now,
than the same or comparable items did in 1967.
Indication
Results from a survey or administrative sources that serve to suggest, hint, or lead to the value of a
statistic.
Lamb
A young sheep, usually less than 1 year old.
Layer
Hens (including those being molted) or pullets producing eggs. They are usually at least 20 weeks
of age.

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USDA, National Agricultural Statistics Service

Lettuce, Head
The most commonly cultivated kinds of lettuce are derived from the species Lactuca sativa, an annual originally from Eurasia and a member of the daisy family. Estimates include production from numerous varieties of heading type lettuce, sometimes called crisphead or iceberg. The butterhead varieties,
mostly Bibb and Boston, are also included. Looseleaf, cos, and stem varieties are excluded. Total crop is
classified as fresh market. Exclude greenhouse production. Bagged lettuce is included. Varieties/Types:
Crisphead(Iceberg); Great Lakes Regular, Permier Great Lakes, Imperial 101, Imperial 615. Butterhead;
Big Boston, White Boston, Bibb, May King.
Lettuce, Leaf
Also a member of the daisy family. The looseleaf or bunching varieties do not form heads. The
leaves cluster together but the young leaves at the center of the plant overlap to any extent. They are not
adapted to long distance travel and have a short shelf life. The entire crop is classified as fresh market. Exclude greenhouse production. Bagged lettuce is included. Varieties/Types: (Red Leaf/Green Leaf) Black
seeded Simpson, Prize Head, Grand Rapids, Salad Bowl.
Lettuce, Romaine
Romaine is identified by an upright, cylindrical or torpedo-shaped head that is firmly wrapped at
maturity. The entire crop is classified as fresh market. Exclude greenhouse production. Varieties/Types:
Parris Island, Valmaine, Ballon.
List Sample
A sample of potential farm operators or agribusinesses selected from a list sampling frame.
List Sampling Frame (LSF)
A list of agricultural operators in a State. Each classified operator or operation name becomes a
sampling unit. The name may be an individual, manager, farm or ranch, corporation, institution, etc.
Live Weight
The gross weight of a live animal as compared to the slaughtered dressed weight.
Livestock
Any domestic animal produced or kept primarily for farm, ranch, or market purposes, including
beef and dairy cattle, hogs, sheep, goats, and horses.
Loan deficiency payments
If the peanut marketing assistance loan rate exceeds the loan repayment rate, peanut producers can
forego obtaining a loan and receive a Loan Deficiency Payment (LDP) equal to the difference.
Loan, Marketing
A nonrecourse price support loan which may be repaid at less than the announced loan rate whenever the world market price or posted county price is less than the commodity loan rate.
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2G-21

Loan, Marketing Assistance
A loan received from the CCC at a designated rate per unit of production. A quantity of commodity is pledged and stored as collateral. Most loan rates continue to be based on 85 percent of the preceding 5
year average of farm prices, excluding the high and the low. Maximum loan rates are specified for some
crops.
Loan, Nonrecourse
Eligible producers may obtain a loan from the CCC by pledging crops in storage as collateral.
Farmers redeem their loans by paying them off with interest, or if a farmer cannot sell the commodity and
repay the loan when it matures, turn the stored commodity over to the government. The government has no
choice but to accept the pledged commodity as complete settlement for the loan.
Loan Rate
The price per unit (bushel, bale, pound, or cwt.) at which the Commodity Credit Corporation
(CCC) will provide loans to farmers to hold their crops for later sale.
Loan Repayment Rate
The level at which producers may repay their loans to FSA.
Long Staple Cotton

1

3/8

Refers to cotton fibers whose length ranges from 1 1/8 inches to 1 3/8 inches. Fibers whose length is
inches or more are known as extra long staple (ELS).

Manufacturing Milk
Raw milk produced or used for the manufacture of dairy products, such as cheese, butter, powdered milk, etc. It may or may not be of lower quality than milk used for bottled milk and may sell for less.
Marketing Contract
An agreement between a producer and a firm or agent to market or purchase a commodity, usually
for delivery or payment in the future. The terms of marketing contracts are generally determined by the
producer (contractee) with the primary responsibility of the agent being to provide the market for the
commodity. The producer may exercise a high degree of control over the production of the commodity and
receives a payment close to the market value of the product. The buyer does not control the production of
the commodity. The contract establishes for delivery and payment which may allow the buyer to take control of the commodity before the final price or payment is made.

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USDA, National Agricultural Statistics Service

Marketing Assistance Loans
Loans for determined crops where the farmers decide how much of their current year‟s production
they want a loan on and pledge that amount as collateral. Farmers can use funds for immediate needs and
enables them to wait until prices have improved to settle their loans and market their commodities. They
have a 9 month maturity and accrue interest. These loans are nonrecourse, meaning that the government
must accept the collateral as full payment of the loan at loan maturity if a producer so chooses. Some
commodities have a national loan rate while others have a county loan rate. Farmers can receive benefits
from marketing assistance loans in four ways, two of which are now subject to payment limits: 1) Marketing Loan Gains (MLGs) 2) Loan Deficiency Payments (LDPs) 3) Gains from the certificate exchange process and 4) Forfeiture gains.
1) Marketing Loan Gains (MLGs) are when producers repay a marketing assistance loan anytime
before loan maturity at the alternative loan repayment rate announced by USDA, if the alternative
rate is less than the loan rate plus accrued interest. The alternative repayment rate for Upland cotton and rice are announced weekly and are commonly called adjusted world prices (AWPs). For
most other crop, the alternative repayment rates are announce daily and are commonly called posted county prices (PCPs).
2) Loan Deficiency Payments (LDPs) are similar to MLGs except that farmers receive LDPs on
current production not placed under loan.
3) Gains from the certificate exchange process. Another way for farmers to reestablish unencumbered control of their loan collateral. There are three steps 1) The producer takes out a marketing
assistance loan 2) The producer turns the collateral over to the CCC. The certificate=s unit price is
the alternative loan repayment rate for the commodity (PCP or AWP) at the time of the certificate
purchase. 3) The producer exchanges the certificates for the quantity of the commodity that was
previously under loan and regains control of the collateral.
4) Forfeiture gains A gain when the market value of collateral forfeited is less than the loan balance. The producer forfeits ownership of the loan collateral to the government when the loan
reaches maturity.
Market News Service (MNS)
A branch of Agricultural Marketing Service. Its function is to provide market reports depicting
current conditions on supply, demand, prices, trends, movement, and other pertinent information affecting
the trade in livestock, meat, and wool.
Market Value
The price real estate, other property or a commodity would receive in the current market.
Market Year Average
Weighted average prices for crops, livestock, and poultry commodities sold during the market
year.

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2G-23

Market Year or Marketing Year
A one year period, beginning at the start of the new harvest for a commodity and extending to the
same time in the following year. The beginning of harvest has been averaged to establish a standard U.S.
marketing year for each commodity, For example, the U.S. cotton marketing year begins on August 1 and
ends on July 31 of the following year.
June 1 - May 31

Rye, Wheat, Barley, Flaxseed, and Oats

September 1 - August 31

Corn, Sorghum, Soybeans, Sunflowers, and Dry Edible Beans

August 1 - July 31

Rice, Peanuts, and Cotton

Marketing Assessment
Require producers to repay nonrecourse price support loans at less than the announced loan rates
whenever the world market price or posted county price for the commodity is less than the commodity
loan rate.
Marketing Order
Federal authorization for agricultural producers to promote orderly marketing by influencing such
factors as supply and quality, and to pool funds for promotion and research. Marketing orders are initiated
by the industry, and are approved by the Secretary of Agriculture and by a vote among its members (usually a two thirds majority). Once approved, a marketing order is mandatory.
Metric Ton or Long Ton
A measure of weight equal to 1,000 kilograms, or about 2,200 pounds.
Milk
[Livestock] The natural food produced by female mammals to nurse their young.
Milk Cow
Cow, excluding a nurse cow, regardless of breed kept primarily to produce milk for home use or
for sale.
Milk: Grade A
Raw milk produced on dairy farms in which the average bacterial plate count does not exceed
Grade A standards. This milk is primarily for the fluid market, although it may be diverted to manufacturing use.
Milk: Grade B
Raw milk which violates the bacterial standard for Grade A raw milk, but conforms with all other
requirements for Grade A raw milk. Primarily, a manufacturing milk.

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USDA, National Agricultural Statistics Service

National Cotton Council of America (NCC)
The central organization representing all seven sectors, or interests, of the raw cotton industry of
the U.S.: producers, ginners, warehouses, merchants, seed crushers, cooperatives, and manufacturers
(spinners). NCC is a voluntary private industry association established in 1939. NCC programs include
technical services, foreign operations, communication services, economic services, and government liaison. Headquartered in Memphis, TN.
NAWG
Acronym for National Association of Wheat Growers, an organization of wheat producers.
NCGA
Acronym for National Corn Growers Association, an organization of corn producers.
National Turkey Federation (NTF)
An organization of turkey producers.
NMPF
Acronym for The National Milk Producers Federation, an organization of milk producers.
Nonresponse
Failure of a respondent to reply to a survey questionnaire; may be item nonresponse (refuse to answer one or more questions), survey nonresponse (refuse to answer any or most of the questions), or inability of enumerator to locate respondent during the survey period.
NWG
Acronym for the National Wool Growers, an organization of sheep and wool producers.
Oilseed Crops
Primarily soybeans, cottonseed peanuts, sunflower seeds, and flaxseed used for the production of
oils and high protein meals. Lesser oil crops are canola, safflower, rapeseed, mustard seed, castor beans,
and sesame.
Onions
Green onions, shallots and leeks are excluded. Estimates include only dry bulk for fresh market
and processed dry onions. The majority of processed onions are for dehydration with only a small percentage being used for onion rings or other lightly processed products, such as, sliced, diced, and peeled. The
dehydrator onion is a completely different onion with a much lower water content and cannot be used as a
fresh market onion. Onions come in numerous shapes and colors (white, yellow, brown, or purple red).
The color has little effect on the flavor, which depends more on whether the variety was developed for
long storage. Short day onion varieties produce bulbs on short days during winter and early spring. Long
day onion varieties bulb when days are longer, during summer. Onions are half hardy perennials grown as
long season annuals. There are three ways to grow them: 1) from sets (small dry onion bulbs whose growth
has been interrupted), 2) from transplanted seedlings, and 3) by direct seeding.
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2G-25

Open Fire Cure
A method of curing tobacco by hanging it on scaffolds in a tobacco barn and building fires under
it.
Operation
Establishments primarily engaged in the production of crops or plants, vines and trees (excluding
forestry operation) and/or the keeping, grazing or feeding or livestock or poultry for animal products, for
animal increase or value increase.
Operator
The person responsible for all or most of the day-to-day decisions such as planting, harvesting,
feeding, or marketing for the tract or total land operated. The operator could be the owner, hired manager,
cash tenant, share tenant or a partner. If land is rented or worked on shares, the tenant or renter is the operator.
Other Hay
The Other Hay category should only be used if the harvested hay does not fit the other categories
(i.e., alfalfa and alfalfa mixtures, wild hay, small grain hay) that may be identified on a questionnaire. Examples of Other Hay crops include bluegrass, timothy, fescue, bermuda, and sudan grasses and clover (if it
is not part of an alfalfa mixture).
Packer
[Livestock] A slaughter and meat processing business.
[Crops] Pertaining to the business of packing fresh or processed fruits and vegetables or meats.
Packinghouse
An establishment where food products are prepared and packaged for market.
Packinghouse Door (PHD)
Equivalent on tree prices including picking and hauling charges.
Parity for Economics
A relationship which defines a level of purchasing power for farmers equal to an earlier base period. Some farmers, rather than using the technical definition above, think of parity as simply "a fair price
plus a reasonable profit."
Parity Price
The price giving a unit of a farm commodity the same purchasing power or exchange value in
terms of goods and services bought by farmers, as farm commodities had in the base period, 1910 to1914.

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USDA, National Agricultural Statistics Service

Parity Ratio
The ratio of the Prices Received index over the prices paid index, using 1910 to 1914 as the base
period. It measures the relative purchasing power of products sold by farmers.
Payment, Advanced
A provision in the farm program where a program participant receiving payments may choose to
receive a portion of the projected final payment early in the year. However, at the end of the program year,
if the final payment is less than the advance amount, producers must refund the excess portion.
Payment, Cost share
Payments made under a program where a participant in the farm program receives partial cash assistance from the government when the participant pays for the cost of a service or good.
Payment, Final
This term is used in conjunction with deficiency payments and transition payments. Advanced
payments are made to participants on the basis of projected payments. The final payment is the actual
payment level that the participant is authorized under the terms of the program which is determined at the
end of the year.
Payment Limitations
Limitations set by law on the amount of money any one person may receive in farm program payments each year under the feed grain, wheat, cotton, rice and other farm programs.
Payment, Loan Deficiency
Payments made to a producer who, although eligible to obtain a marketing assistance loan, agrees
to forgo the loan in return for the payment. A loan deficiency payment is available only when the adjusted
world price is below the loan rate.
Payment Quantity
The payment quantity of a contract commodity for each fiscal year equals 85 percent of the contract acreage multiplied by the farm program payment yield.
Payment Yield
The farm commodity yield of record (per acre), determined by a procedure outlined in the farm bill
legislation. Payment yields can be based on a 4 year farm historic yield or a county average yield or a
combination of both.
Peas, Green
Also called English Peas. Available January through June. Classifications are tall and dwarf, early
and late, small pod and large pod, and smooth seeded and wrinkle seeded. All varieties are included in
production estimates. No estimates of fresh market production are made.

USDA, National Agricultural Statistics Service

2G-27

Peppers, Bell
Also known as sweet peppers. Bell peppers are a Nightshade vegetable. The fruit is mild or sweet
fleshed and is dark green when immature. At maturity the color may be red, yellow, black or purple. Separate estimates of fresh market and processing are required but only the total is published. Greenhouse production, pimento, paprika, and chile type peppers are excluded. Varieties/Types: Most common variety is
California Wonder. Others are Early Cal Wonder, Burlington, Yolo Wonder, Enterprise, Neopolitan, Chinese Giant, and Harris Early Giant. Available year round in large volume, but peaks May through August.
Peppers, Chile
Include all peppers other than bell peppers. Also members of the capsicum family. Varieties/Types: Fresh Anaheim, Fresno Chili, Habanero, Habanero (Red Savina), Jalapeno Chili, Peperoni,
Poblano Chili, Serrano Chili, Scotch Bonet, Yellow (Banana, Yellow Wax, Hungarian Wax). Dried Anaheim Red Chili, Ancho Chili, Chili De Arbola. Exclude ornamentals. Separate estimates are made for fresh
market and processing. Data will be published at the "all" level.
Pfund Scale
A scale expressed in millimeters used in the honey industry to describe the color of honey.
Pima Cotton/American Pima Cotton
Grown in Southwest U.S. and Peru, this superior quality, long staple cotton is named for the Pima
Indians who helped to raise it in Arizona test fields in the early 1900s. Its longer length makes Pima cotton
softer, smoother, and stronger than other cotton fibers which become even more comfortable with age. Its
fewer imperfections in the yarn, allow for creating finer finished lustrous garments and bedding.
Point of First Sale
The point in the marketing channel where the firm selling the product gives up the ownership of
the product.
Pooled Grain
Grain in this category has usually been delivered to a cooperative. Farmers will receive partial
payment at the time of delivery and final payment at some later date after the cooperative markets the
grain.
Poult
A young turkey before its sex can be determined. Sometimes applied to the young of other fowl.
Poultry
Any or all domesticated fowls raised primarily for their meat, eggs, or feathers, such as chickens,
turkeys, ducks, and geese.

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USDA, National Agricultural Statistics Service

Premiums
Premiums are often paid for #1 (classing standard) grain or those with specified milling qualities
or protein content. A premium is an additional payment based on the high quality of the grain or the producer providing an additional service such as delivering the grain to a location more convenient for the
buyer. Some ethanol plants pay farmers an annual “premium” for their delivered corn. Do not include
“premium” payments which are a shareholder‟s dividend based on the ethanol plant‟s profits.
Price, Mill
The price of a commodity delivered to a buyer at the mill. These prices, including landing and
brokerage costs, are quoted for commodities at given grades and commodity descriptions.
Price Received by Farmers
The price farmers receive for commodities they sell in their local market or at the point where they
deliver their product. The farmer delivers the product to market, so transportation discounts should not be
subtracted from the price received.
Prices Received Index
An index to measure changes in average prices received by producers for agricultural commodities
they sell, relative to a base period.
Price Relative
A price relative is the ratio of the price of a specific commodity, such as Corn, in one period to the
price of the same commodity in some other period. The prices NASS uses to compute price relatives are
the commodity average prices at US level. The base period is 1990-1992.
Price, Spot
A spot or cash market price is the price a commodity of various qualities was sold in different areas. These exchanges provide a means of establishing premiums and discounts to producers and for settling
futures contracts.
Probability Sample
A method of sampling that utilizes some form of random selection. A random selection method
uses a process that assures that the members in the population have a probability of being chosen.
Processed Vegetable
A vegetable is considered processed if it is sold to the consumer after it has been altered by heat,
pressure, or freezing temperatures.
Processing Plant
Business and corresponding buildings designed to carry out the operations, such as pasteurizing
milk, curing meats, canning and preserving fruits, etc., required to prepare agricultural products for sale
and consumption.
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Processor
One who processes or prepares agricultural products by cooking, curing, etc.
Program Crop (FSA)
A crop that FSA is allowed to distribute program payments.
Pumpkins
Small „mini‟ pumpkins, gourds, and other pumpkins (such as Jack O‟Lanterns) normally used for
decoration should be considered for ornamental use and not included in the estimate. The pumpkin estimate will be primarily processing and should include pumpkins intended to be sold to processors. Varieties/Types: Fresh Market/Pie Jack o‟ lantern Spirit (AAS), Cinderella Bush, Jack O‟Lantern, Jackpot,
Howden, Connecticut Field. Small Pie, Small Sugar, New England Pie, Spookie. Other pie Mammoth.
Processing: These varieties are widely used for commercially canned pumpkin, and have tan skin color
Buckskin(hybrid), Chelsey(hybrid), Dickinson Field, Kentucky Field.
Questionnaire
A form used to ask specific questions and to record the responses given to the survey questions by
selected sample units. The questionnaire may be on paper or on a computer screen using Computer Assisted Telephone Interview (CATI) or Computer Assisted Personal Interview (CAPI).
Rancher
Ranch operator.
Ratio to Base
A ratio estimator whose divisor or “base” is known in advance and is part of the sampling frame.
Referendum
The referral of a question to voters to be resolved by balloting; for example, marketing quotas,
acreage reduction, or marketing agreements.
Refusal
A person representing a sample unit who will not cooperate in the survey and who refuses to provide sufficient information to satisfactorily complete the questionnaire, or who will not give an enumerator
permission to complete the field counts or measurements.
Relative Importance
The relative importance (relative weight) of an item represents its basic value weight, including
any imputations, multiplied by the relative price change from the weight date to the date of the relative
importance calculation, expressed as a percentage of the total value weight for all commodity categories.
When the total value is fixed, the relative importance remains constant. However, NASS uses a five-year
moving average method to compute the weights for price indexes. Thus, the relative importance changes
each year. The relative importance of Feed, for example, changes from 11.4 for 2009 to11.9 for 2010.
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USDA, National Agricultural Statistics Service

Release Date
The date the survey results are published and released.
Respondent
The person who provides the information necessary to complete a survey interview.
Revisions
A change made by the Agricultural Statistics Board to an earlier published USDA estimate. Revisions are made as a result of more current information or additional information learned about the commodity since the original estimate was published.
Rice, Long Grain
The predominant rice type grown in the United States. The length of the grain is about four to five
times the width of the grain. Long grain is dominant in the 5 State Delta region.
Rice, Medium Grain
Medium grain rice is shorter and thicker than long grain rice. California produces the majority of
the medium grain rice in the United States
Rice, Short Grain
This type is sometimes referred to as round rice. Almost all short rice production in the United
States is in California.
Rough Rice
Rice as it comes from the field before milling. Also, known as paddy rice.
Sample
Sampling units selected from a sampling frame.
Sampling Unit
An identifiable unit of a sampling frame that may be selected when drawing a sample.
Shade Tobacco
See "Cigar Wrapper."
Shrink
An industry term used to denote the loss in grain weight when grain is dried to a standard moisture
or grain loss when it is moved or handled by a facility.
Small Grain
Any of the cereal crops, such as wheat, oats, barley, rye, and rice.
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Small Grain Hay
Includes small grains such as wheat, oats, and rye harvested as hay instead of grain. Small grains
harvested for hay are a source of feed for a feedlot. Sometimes a small grain is intended to be harvested for
grain, but if grain quality and quantity has poor potential, grain prices are low, or a second crop will need
to be planted before the grain is ripe, then harvesting for hay is an alternative.
Sow
Female pig that has farrowed at least once.
Speculation
Trading in futures contracts in which traders take the risk of price change, hoping for a financial
gain.
Speculative Commodities
Commodities designated by USDA regulations because they are traded on organized commodity
exchanges. Forecasts and estimates for these commodities are prepared under special precautions.
Speculator
People who underwrite the risk for the hedging process. Speculators usually have no commodity to
deliver or do not intend to take delivery on any contracts. They will try to offset their market position before the contract is due.
Spinach
A green leafy annual of the goosefoot family. Spinach is a quick maturing cool season crop. Varieties are classified according to leaf type which also helps identify usage. The savoy (crimped leaf) type is
generally used for fresh market. The flat or smooth leaf types are generally canning types. New Zealand
spinach is not a true spinach and is not included in estimates. Separate estimates are made for fresh market
and processing.
Squash
Member of the cucumber family and is generally divided into 2 classes. 1) Summer squash with
soft skins are eaten at immature stages; 2) winter squash are more suitable for winter storage because of
their hard shells.
Types/varieties: Soft shelled summer zucchini, cizelle, choyote, scallopini, yellow crookneck,
yellow straightneck, cucuzza, sunburst, marrow, patty pan (all available late spring, peak late
spring and early summer). Hard mature winter, small white, green and gold table queen (acorn),
carnival, turban, delicata (sweet potato), butternut, sweet dumpling, kabocha, golden nugget, buttercup (Aug Mar, peak Oct Dec; some are available year round). Hard shelled mature winter, large
spaghetti, orange maroow, hubbard, banana, Australian blue, sweet meet, Mediterranean, calabaza
(Aug Mar, peak Oct Dec; some are available year round).

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Standard weight/moisture
The 'dry' standard measure of grain quantity comes from two factors by which grain volume is determined. One is moisture content (% water of total weight) and the other is weight per volume. The following are guidelines and may vary by individual firm.
Standard
CROP

MOISTURE%

Weight
POUNDS

UNIT

Corn

15.5

56

bushel

Barley

14.5

48

bushel

8.0

56

bushel

Oats

14.0

32

bushel

Sorghum

14.0

100

Soybeans

14.0

60

8.0

100

13.5

60

Flaxseed

Sunflowers
Wheat

cwt
bushel
cwt
bushel

State Field Office
Coordinate all the field activities for the National Agricultural Statistics Service (NASS). NASS
maintains a network of 46 State field offices, serving all 50 States and Puerto Rico through cooperative
agreements with State departments of agriculture and universities.
Statistically Defensible Survey
A survey whose procedures and specifications can with stand court challenge or other investigation. The survey should have an adequate sample size, randomly selected respondents, carefully worded
questions, professional interviewing, reasonable editing, correct summarization, and appropriate publication.
Statistics
Totals, averages, percentages, and other numbers computed from population or sample data.

Statistics Canada
Statistics Canada (French: Statistique Canada) is the Canadian Federal government agency commissioned with producing statistics. Its headquarters is in Ottawa.
Steer
Castrated male cattle.
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Stock Sheep
Sheep in the breeding flock, including ewes and rams used for breeding, wethers one year old and
older, ewe lambs and ram lambs.
Strata or Stratification
The classification of sampling units in a population into homogeneous groups. An area frame is
stratified based on land use, such as intensity of cropland, rangeland, wasteland, urban areas, etc. A list
frame is stratified based on operation control data, such as number of livestock, grain storage capacity,
cropland, and total acres operated.
Strawberries
A perennial member of the rose family that produces large red fruit. Most varieties produce seasonally or during a short period. However, everbearing varieties are included in total production. Strawberries reach peak supply May through July but are available year round. Supplies are at a low point November through January. About 70 varieties are produced in the United States, among the popular varieties are:
Camarosa, Selva, Diamante, Sweet Charlie, and proprietary varieties.
Survey
The collection of data pertaining to specific sample units. A sample is selected and information
collected from individual sampling units. Data reported by the selected sampling units, when summarized,
provides an indication of what the total would be if all the sample units within the population of interest
had reported.
Survey Period
The time period during which survey data collection can occur. Primarily determined by the survey‟s reference date and due date.
Sweet Corn
A variety of corn with kernels high in sugar that is eaten by humans as fresh or processed corn.
Swine
A hog or a pig.
Target Price
The 2002 Act establishes target prices for eligible commodities.
Terminal Market
A city or market into which large amounts of produce are brought for sale and distribution.
Tobacco, Shade
See Cigar Wrapper.
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Tomatoes
Generally, different varieties and cultural practices have been developed for fresh market and processing. Fresh market includes, ripe, mature greens, and pinks sold for immediate consumption. Tomatoes
grown organically and heirloom varieties (those varieties that are more than 50 years old) may be included.
Tomatoes originally grown for fresh market may be processed, usually as whole peeled tomatoes. Plant
breeding for more uniform ripening and size has developed a fruit grown for processing that can be mechanically harvested. These terminal growth type tomatoes are not normally used for fresh market production. Cherry tomatoes, grape tomatoes, tomatillos and greenhouse production are not included. Special
processing varieties are specifically suited for mechanical harvesting. Fresh market tomatoes are handpicked, with a field being picked about three times before harvest is complete.
Truck Farm
A farm producing one or several kinds of vegetables which are shipped to and sold at markets.
Turkey Market Year
The average price received by farmers from January through December of the current year.
Turkey Prices
Price reflects the mid month price for both preliminary and revised estimates. Price represents a
liveweight or equivalent liveweight basis for all turkeys sold.
Unexpanded Average
Simple average of sample responses.
United Egg Producers (UEP)
A national egg producer organization.
United States Department of Agriculture (USDA)
A Department within the Federal government having a cabinet level Secretary reporting to the
President. It functions to propose legislation and establish regulations in the best interest of agriculture.
Upland Cotton
The predominant type of cotton grown in the U.S. and most of the world. The fiber staple length
ranges from 13/16 inch to 1.3 inches, averaging nearly 1 3/32 inches.
Variety
A group of related plants or animals that differ from similar groups by characteristics too trivial to
be recognized as a species.

USDA, National Agricultural Statistics Service

2G-35

Value / Expenditure Weights
Value weights are the measures of the relative importance of commodities in the price index. The
weights reference period values of the various components covered by the price index. Being commensurate and additive across different commodities, value weights can be used at aggregation levels above the
detailed commodity level. NASS uses farm expenditures and cash receipts to compute the value weights
for price paid and price received indexes respectively.
Watermelons
A member of the gourd family. The plant is a training annual with long running stems and
branched tendrils. The fruit differ in size, shape, and color of rind and flesh. Most varieties have seed but
some are seedless. the crop is entirely for fresh market. Varieties/Types: Picnic Jubilee, Crimson Sweet,
Allsweet, Peacock/Klondike; Seedless Triploid Hybrid, Icebox. Watermelons are considered a dryland
crop which can withstand dry soil conditions since the roots are able to grow down, up to 20 feet, to reach
the water table underground.
Weights
A set of numbers between zero and one that sum to unity are used when calculating price indexes.
Value shares sum to unity by definition are used to weight price relatives, or elementary price indexes, to
obtain higher-level index. Although quantities are frequently described as weights, they cannot serve as
weights for the prices of different types of commodities whose quantity are not commensurate and use different units of quantity that are not additive. The term “quantity weights” generally is used loosely to refer
to the quantities that make up the basket of goods and services covered by an index and included in the
value weights.
White Corn
A variety of corn with white kernels used for making white corn meal.
Wild Hay
Hay made from native or wild, uncultivated grasses and plants. Prices included with “other hay”.

2G-36

USDA, National Agricultural Statistics Service

Common Abbreviations
ACRE
AMS
ASB
Bbl
Bu
CAPI
CATI
CBOT
CCC
CCI
CFA
CFTC
CIF
CV
DCC
DCP
DHIA
EC
EDR
ELS
ERS
FO
FOB
FSA
HQ
LDP
LSF
MNS
MYA
NASS
NAWG
NCC
NWG
OMB
PHD
POFS
NMPF
NPPC
NTF
UEP
USDA

Average Crop Revenue Election
Agricultural Marketing Service
Agricultural Statistics Board
Barrels
Bushels
Computer Assisted Personal Interviewing
Computer Assisted Telephone Interviewing
Chicago Board of Trade
Commodity Credit Corporation
Cotton Council International
Catfish Farmers of America
Commodity Futures Tradings Commission
Cost, Insurance, Freight
Coefficient of Variation
Data Collection Centers
Direct and Counter cyclical Program
Dairy Herd Improvement Association
Estimation Centers
Electronic Data Reporting
Extra Long Staple cotton
Economic Research Service
Field Office
Free On Board
Farm Service Agency
Headquarters
Loan Deficiency Payments
List Sampling Frame
Market News Service
Market Year Average
National Agricultural Statistics Service
National Association of Wheat Growers
National Cotton Council for America
National Wool Growers
Office of Management and Budget
Packing house Door
Point of First Sale
National Milk Producers Federation
National Pork Producers Council
National Turkey Federation
United Egg Producers
United States Department of Agriculture

USDA, National Agricultural Statistics Service

2G-37

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2G-38

USDA, National Agricultural Statistics Service

Chapter Three. Prices Paid Program
IN THIS CHAPTER

Component & Sub-component Indexes.... 3-21

History / Background .................................... 3-2

Link Date Selection and Link Process...... 3-22

Survey Methodology ..................................... 3-3

Index Computation & Benchmark............ 3-22

List Sampling Frame.................................. 3-3

Uses and Limitations ................................ 3-24

Sample Design and Selection .................... 3-4

Publication and Dissemination .................... 3-25

Questionnaire and Data Collection ............ 3-4

Publication ................................................ 3-25

Farm Machinery ..................................... 3-4

Dissemination ........................................... 3-26

Feed ........................................................ 3-5

References ................................................... 3-28

Fertilizers and Agricultural Chemicals ... 3-6

Appendix

Fuel ......................................................... 3-6

Tables ........................................ 3T-1 – 3T-24

Retail Seed.............................................. 3-7

Glossary of Selected Terms ....... 3G-1 – 3G-64

Poultry .................................................... 3-8
Edit / Analysis / Summary ......................... 3-8
Farm Machinery ..................................... 3-9
Feed ........................................................ 3-9
Fertilizers and Agricultural Chemicals ... 3-9
Fuel ........................................................ 3-10
Retail Seed............................................. 3-10
Poultry ................................................... 3-10
Weighting ................................................. 3-10
Estimation ................................................. 3-12
Agricultural Statistics Board Review ....... 3-17
Prices Paid Index.......................................... 3-17
History / Background................................ 3-18
Reference Period Selection ....................... 3-19
Commodity Selection ............................... 3-19

This chapter presents program history,
background information, and the current methodology used in NASS’s Prices Paid program. Since the
program’s inception, many changes have been necessary to address the changing environment in agriculture. Since the USDA began collecting prices
paid by producers’ data, agriculture has undergone
many dramatic changes. The need for timely and
accurate farm input price data is more demanding
than ever. Currently, NASS collects data for over
450 items from dealers and agribusinesses in 48
States. The prices paid surveys are conducted annually in March for agricultural chemicals, farm machinery, feed, fertilizers, fuel, and retail seed. The
prices from these surveys are used to compute a
March index published in April each year. A
benchmark process revises the monthly indexes for
the previous 11 months where administrative data
were used.

Basis of Weights ....................................... 3-20

USDA, National Agricultural Statistics Service

3-1

The index series has maintained the 19101914 base period for parity price purposes as prescribed in permanent legislation. A more recent base
reference period is provided and has undergone a
number of updates through the years. The current
program survey methodology includes universe development and maintenance; survey sample design
and selection; survey instrument design; data collection means; use of administrative data; data review,
analysis, and summarization; estimate construction;
estimate revisions; and public availability of the
farm input price estimates. To provide as much
transparency in this document as possible, some discussion is repeated. This chapter also provides a
presentation of data needs and uses for the data as
well as limitations with the data series.

cessor, collected more than 650 items of prices paid
by producers (USDA, 1964).

History / Background

Since prices paid items were first surveyed,
data collection has undergone several time frame
changes ranging from monthly, quarterly, semiannual, and yearly due to market basket changes and updates. The current program, last revised to survey
annually in 1995, now collects data for over 450
items from dealers and agribusinesses in 48 States.
Although the number of items remains basically the
same as in the 70’s, the mix has changed due to purchasing pattern changes and items becoming obsolete. The prices paid surveys are conducted annually
in March for farm machinery, feed, fertilizers, agricultural chemicals, fuel, and retail seed. The prices
from these surveys are used to compute a March index. A benchmark process revises the monthly indexes for the previous 11 months where administrative data were used.

The U.S. Department of Agriculture
(USDA) first surveyed merchants in 1911 to obtain
information on prices paid by producers for family
living and production. At that time, 86 commodities
were included in the annual survey. By 1923, the
survey was being conducted quarterly. The number
of items surveyed continued to expand until, in
1927, 174 commodities were included. “To strengthen the commodity coverage in the Prices Paid Index,
Bureau of Agricultural Engineering (BAE), beginning in 1935, expanded the collection of price series
of commodities bought by farmers until, at the end
of 1949, prices were collected for nearly 500 commodities…”(USDA, 1957). In addition, BAE expanded the historical data in 1936, particularly 19101914, by conducting a historical survey in 19 States
and compiling price data from mail-order catalogs
and other sources. Beginning in 1937, the surveys
were semiannual, quarterly, or monthly, depending
on the item (USDA, 1990). By 1962, the USDA’s
Statistical Reporting Service (SRS), NASS’s prede3-2

In 1970, SRS surveyed independent stores in
49 States. Feed dealers and hatcheries were surveyed
monthly, while food stores, clothing stores, household furnishings and appliance stores, hardware and
farm supply stores, service stations and auto supply
stores, building and fence dealers, fuel dealers, marketing container handlers, and farm implement and
machinery dealers were surveyed quarterly. Fertilizer dealers and car and truck dealers were surveyed
semiannually (USDA, 1990). These surveys covered
about 450 items that were used in the compilation of
the index.

USDA, National Agricultural Statistics Service

Survey Methodology
List Sampling Frame Development

The objective for the frame is to be representative of retail establishments where producers
purchase products and services for production operations. Agribusinesses are geographically distributed
such that all areas of the State are represented. The
focus is on businesses that have sales of inputs to
agricultural producers. Retail outlets and establishments that sell agricultural products are not part of
the regular NASS list frame building process. In
2010, a screener operation survey was conducted to
enhance the frame for agribusinesses selling farm
input commodities. All operations that were on the
list were contacted to determine items of interest
being sold. Table 3.1 shows the total screener target
sample count. Those operations currently sampled
for the prices paid surveys also completed the
screening form. Tables 3.2a - 3.2e show, broken
down by survey, the number of retail establishments
contacted and added to the list frame from the
screener.

The farm machinery, feed, fertilizer, agricultural chemical, fuel, and retail seed prices paid survey categories each follow the same frame development and updating process. For each category a separate survey is conducted in March. Agricultural
chemical and fertilizer price data are collected from
the same survey. Seed surveys for cotton, peanuts,
potatoes, rice, and sunflowers are conducted in major commodity states. The number of contacts varies
in these states. In some cases, a State may collect
and provide data to other states for use in setting
state estimates.

Target Population and Frame Development. The
target population for the each survey group includes
all retail outlets or establishments where producers
USDA, National Agricultural Statistics Service

purchase input items, for their operations. A retail
outlet or establishment can be identified for selling
items across any of the five survey categories. So, it
is possible for a retail outlet or establishment to be
identified in all five target populations.

If a business operates at multiple locations,
or if it is part of a franchise (chain), each individual
location is treated as a separate operation eligible for
sampling. The list sampling frame (LSF) operations
have procedures for handling agribusinesses with
multiple locations. The list of agribusinesses is comprised of current establishments used by producers
to purchase the targeted survey items.

The LSF is reviewed annually in advance to
ensure that the list of businesses targeted for the
prices paid surveys is complete, accurate, and up-todate. Table 3.1 shows the target sample for each survey group. The State field offices maintain each universe to cover the minimum number of operations
required to meet the target sample. Samples are refreshed by 20 percent each year, meaning 20 percent
of the sample is replaced. This reduces respondent
burden while maintaining sufficient overlap.

Listings of these operations to build and
maintain the list frame are obtained from telephone
directories and business directories, on regulatory
lists, and through industry wholesalers and trade associations. The National Association of State Departments of Agriculture (NASDA) enumerators,
county extension personnel, and other individuals
associated with the farming industry also provide
sources of information about retailers and other agribusinesses.

Frame Maintenance. Each year for a targeted survey category, Headquarters staff provides transac3-3

tion reports of out-of-business operations, name and
address changes, and business type changes to each
State field office. The transaction reports are generated from data collection. Operations are screened
thoroughly for other agricultural activities before
dropping or coding as inactive. If the operation is
also associated with an active farm and only the agribusiness is out of operation, list frame control data
for the appropriate prices paid survey samples are
removed, with the record left active. See Table 3.3
for a list of frame status codes.

Sample Design and Selection

Samples are drawn for the five prices paid
surveys. The sample design for the Prices Paid program follows a quota sampling scheme. A quota
sample is used because NASS does not maintain
populations of agribusinesses that sell these commodities. There is an effort to target samples at the
state level for each survey group. The sample becomes a non-probability stratified sample with the
strata defined as States within a survey group.

Each State field office is given a sample size
requirement for each of the five surveys. Historically, there has been 100 percent overlap from year-toyear for establishments that are still in business and
responding. Out of business operations and nonrespondents are removed from the sample. State field
offices add retail outlets or establishments to replace
the dropped sample units based on the case disposition codes. If the target sample size is greater than
the carryover from the previous year, the State field
offices search for other establishments to replace the
sample units removed from sample. Table 3.4 lists
the case disposition codes.
Since retail outlets and establishments that
sell agricultural products are not part of the NASS
list frame building process for producers, a complete
3-4

list of the agribusinesses population is unknown.
There are no target coefficients of variation or CVs
for the sample process. In addition, sample weights
are not generated from the sampling process. The
state level estimates from the prices paid surveys are
averages of the data reported from usable reports.

Questionnaire and Data Collection

Each year the data collection timeframe is a threeweek period around March 15th for the five prices
paid commodity groups. Data may be collected by
mail, phone, field enumeration, or via electronic data
reporting. The reference date for each survey is
March 15th. Other seeds data are also collected in
March while poultry prices paid data are collected
monthly and in December. Target response rate is 80
percent for the prices paid surveys. Agribusinesses
are requested to report the prices for the item most
commonly sold that meets the general specification
on the questionnaire. Quantity sold data are not collected for any commodity except for poultry.

Farm Machinery. NASS asks questions for 86 types
of farm machinery implements on the “Prices Paid
for New Tractors and Farm Machinery” questionnaire. The standard classification for farm machinery
included in the survey is as defined by the Association of Equipment Manufacturers. Table 3.5 shows
the specific types of farm machinery. NASS collects
the average price for the most commonly sold farm
machinery items which are not specific to manufacturer or make but do meet item specifications. Price
data are collected to the nearest dollar. The following pricing factors are applied when collecting the
price of the farm machinery:
An average price, not a range of prices, is
collected for farm machinery by different
manufacturers.
USDA, National Agricultural Statistics Service

The reported price is the purchaser’s net
price paid after receiving any discount or rebate with no trade-in. Cash discounts and
rebates offered by the dealer or manufacturer are reflected in the reported price.
The reported price is not adjusted for the
value of any trade-in.
Prices are for new farm machinery.
Prices are for “the most commonly sold.”
Accessories usually purchased with the farm
machinery are included.
Sales tax is excluded.
The NASDA enumerators and State field office staff
verify the make and model of the farm machinery,
like tractors and combines, with the dealer or manufacturer to ensure that prices are reported in the
proper category.

Feed. Data for 35 feed items are collected on the
“Prices Paid for Feed” questionnaire. Table 3.6 lists
the specific feeds. NASS collects the price for each
feed to the nearest cent. Pricing factors applied when
collecting feed prices are to exclude sales tax; to include discounts for quantity purchases, cash payments, and delivery arrangements; and to report
items “most commonly sold.” The dealer reports a
price for bagged, bulk, or both types sold. The units
of measure for reporting includes ounces, pounds, 50
pound block, 50 pound bag, 100 pound bag, hundredweight, or ton. The most common units for reporting feed item prices are bags (100 pounds) and
tons (2000 pounds). These prices are combined using relative weights proportionate to each unit’s contribution to historic total quantities sold. The bag and
bulk weights are applied at the state level. The
NASDA enumerators and State field office staff use
data from feed manufacturers and marketing firms to
validate reported data.
Poultry Feeds. The four poultry feeds surveyed are
chick starter, broiler grower, turkey feed, and laying
feed (commonly referred to as laying mash). Prices
USDA, National Agricultural Statistics Service

for poultry feeds are for a complete ration feed
which will usually contain antibiotics. The NASDA
enumerators and State field office staff review extremely high or low prices since some respondents
may report a price for a different item or reporting
unit. Prices are reported in tons or bags of 50 or 100
pounds.

Dairy Feeds. Four complete feeds and one concentrate are collected for dairy feeds. Complete feed
data is captured for 14, 16, 18, and 20 percent protein. The concentrate is 32-38 percent protein. The
NASDA enumerators and State field office staff review prices for outlier reports. Additionally, the
NASDA interviewers review the price relationships
for the units of measure and for consistency.

Hog, Beef Cattle Feeds, and Concentrates. Data for
hog complete feed 14-18 percent protein and hog 3842 percent protein concentrate are collected. Beef
cattle concentrate is reported for 32-36 percent protein only. Higher protein feeds are not necessarily
higher in price since urea can be used as a protein
source in cattle feed. Concentrate prices are collected for 100 pound bags. The NASDA enumerators
verify the protein percentage and correct if erroneously reported. Follow up contacts are made to verify high or low reported prices.

Supplements. Salt is commonly sold in blocks or
bags, and is often purchased by the ton. Price data is
collected for bags or blocks (50 pounds). Trace mineral is sold in blocks of either 40 or 50 pounds. The
weight of the block depends on the composition of
the filler used by the manufacturer. The mineral content remains the same at 94.5 percent to 97.5 percent
regardless of the block weight. The weight of the
block is important for salt and trace minerals in converting to a common price per ton. Reported price
data are converted to a ton price to establish a common consistent publication unit.
3-5

The questionnaire collects the weight for
liquid molasses by the hundredweight. Dry molasses
price data are not collected. NASDA enumerators
verify prices for liquid molasses from the respondents when reported data seems questionable.

Corn meal does not include prices for distiller’s grade cornmeal. NASDA enumerators and
State field office staff verify prices which vary considerably from the state average price.

Fertilizers and Agricultural Chemicals. The questionnaire for “Prices Paid for Fertilizers and Agricultural Chemicals” collects data for fertilizers, fungicides, herbicides, and other chemicals. Table 3.7
shows the specific types of fertilizers and agricultural chemicals. Prices collected for each type are to the
nearest cent. The questionnaires are specific for each
State.

Fertilizer and agricultural chemical prices
reflect the cost at the farm gate. In other words, the
prices include the delivery costs. Fertilizer and agricultural chemical prices exclude the cost of application. Lime, however, includes the cost of application
as lime is priced on an applied basis.

The NASDA enumerators verify inconsistent and extreme prices. Prices reported by the
same respondent should show a relationship of higher prices for higher concentrations. Price variation
may occur for the following reasons:
Volume discounts
Fees for transportation or custom blending
Point of transaction - Whether prices are dealer FOB (Free on Board) or delivery on the
farm. FOB dealer indicates the responsibility/ownership of goods transfers from the
3-6

wholesaler to the dealer. Delivery on the farm
indicates the responsibility/ownership of
goods transfers from the dealer to the producer.

There has been a shift towards custom
blending of fertilizer as producers are tailoring fertilizer purchases to meet specific nutrient requirements based on soil analysis. Consequently, some
items on the fertilizer questionnaire may no longer
be sold by the respondent. However, it is important
that the formulation indicated on the questionnaire
match the prices of "write-in" mixtures. A “write-in”
mixture is a blend being sold which is not listed on
the survey instrument. These mixtures while not included in the current survey can be evaluated for
inclusion in future surveys. The dealer reports either
bagged or bulk prices. Table 3.8 shows the units of
measure. Selected fertilizer items are used in the
computation of the prices paid index.

Fuel. Price data for four fuel items are collected on
the “Prices Paid for Fuels” questionnaire. Table 3.9
shows the fuel categories. The price collected for
each type of fuel is to the nearest tenth of a cent.

Businesses that sell gasoline, diesel, or L.P.
gas may not know specifically if their customers are
producers. Even if it is unknown whether producers
purchase fuel at a particular location or not, the
enumerators collect the price data, as the price quoted is considered the price that a producer would pay
for fuel purchased from the business. The data collected are for the most commonly used service of
pumped gasoline. The four types of service include
card lock, key lock, self service, and full service.

If the operation sells ethanol as well as unleaded gasoline, the price of the most commonly
USDA, National Agricultural Statistics Service

sold fuel is obtained for unleaded gasoline. If the
most commonly sold fuel is ethanol, it is noted on
the questionnaire. The NASDA enumerators also
verify the following:
Unleaded gasoline may be priced at the service station pump and/or as bulk delivery.
Diesel fuel and L.P. gas are priced at bulk
delivery.
The price includes all taxes for gasoline.
The price excludes all taxes for diesel fuel
and L.P. gas.
The reference date for the retail price is
March 15.
Prices are to three decimal places. For example
$2.499/gallon = 2 . 4 9 9
$2.50/gallon = 2 . 5 0 0
Prices exclude any discounts.

Retail Seed. Seventy-two questions for various seeds
are collected with the “Prices Paid for Retail Seed”
Questionnaire. Table 3.10 shows the specific seeds
included in the survey. The price for each type of
seed is to the nearest cent.

Manufacturers are producing specialized
seed for some agricultural crops, including biotech
varieties and proprietary (patented) varieties. Prices
for biotech and proprietary varieties are generally
higher. The term biotech refers to genetically modified seed varieties that have been developed to possess particular traits that are resistant to insects,
chemicals, and fungicides.

The NASDA enumerators verify the following for seed prices:
Prices exclude sales tax.
Prices exclude any discounts.
USDA, National Agricultural Statistics Service

Prices include technology fees.
Prices include cost of seed treatment.
Prices are to nearest cent.
The reference date is March 15 for all commodities except for fall wheat, which is from
the fall of the previous year.

The dealer reports seed prices in any of the following units of measure:
Gram
Dry ounce
Pound
50 lb bag
100 lb bag
Hundredweight
Bushel
80,000 kernels
140,000 seeds
Ton

Other Seeds. Other seed data get collected by contacting dealers in the universe and other knowledgeable industry contacts. The specific types of other
seeds include cotton, potato, rice, peanut, and sunflower.

Seed cotton data are collected on the “Prices
Paid by Farmers for Seed Cotton” questionnaire.
The questionnaire asks for quantity sold to producers
and average price per hundredweight. NASS collects
the price for each type of seed including biotech,
non-biotech, and all seed cotton to the nearest cent.
Genetically Modified Organism or GMO technology
fees are included in the price while future rebates are
excluded.

Potato seed data are collected with the Potato Prices questionnaire. NASS collects the average
3-7

price for potato seed to the nearest cent for all varieties of potatoes sold. The total quantity sold is also
collected and reported to the nearest hundredweight.
Potatoes data includes contract and open market
sales.

Rice, peanut, and sunflower seeds are collected by the State field offices either through paper
questionnaire or administrative data. The source and
availability of price data varies by state and the
number of suppliers is generally limited to a few
establishments. It is, then, the discretion of each
state how the data are collected. Guidance on standardization and estimation procedures is provided by
Headquarters.

Poultry. Price data for broiler and egg type chicks
are included in the replacement livestock subcomponent index. Broiler type chick and egg type chick
data are reported on the weekly as well as the
monthly hatchery reports and on the December
chicken questionnaire. Turkey poult prices are collected from hatchery production data sources on an
annual basis. The estimation of poult price is similar
to chick prices except the poult price is estimated on
a per bird basis while chick prices are estimated per
100 chicks. The price data for each item is to the
nearest cent.

3-8

Edit / Analysis / Summary

Prices are collected on an annual basis for
the U.S. for the five prices paid commodity groups.
Alaska and Hawaii are not included in the prices
paid program. Price data for the five prices paid
commodity groups surveyed are machine edited and
analyzed and summarized using NASS developed
tools.

The setting of official prices for items in
each of the five prices paid commodity groups follows a similar process. After the State field offices
complete the data collection process, headquarters
(HQ) staff reviews each item for records with outliers to create a final dataset. If an outlier is found,
HQ directs the State field offices to either provide
details to validate the record or correct the data. HQ
summarizes the finalized dataset at the geographic
level specified for the commodity. The output is reviewed by subject matter experts for reasonableness
and each State’s data are compared to surrounding
States’ data. If the data are sound, the U.S. and regional-level estimates are prepared for publication.
Regional level estimates are set for feed, fertilizer,
and fuel. U.S. estimates are set for agricultural
chemicals, farm machinery, and seed. No seasonal
adjustments are made to the annual survey price data. The published annual prices for the prices paid
commodities are weighted averages. All surveys and
administrative data are edited, analyzed, and summarized using NASS developed tools.

USDA, National Agricultural Statistics Service

Figure 1: Ten Farm Production Regions

The U.S. is divided into ten farm production
regions with individual States grouped based on similar production practices and resource characteristics.
The States are contiguous in each region. Figure 1
shows a map with the ten farm production regions in
the U.S. Commodities summarized and estimated
using the farm production regions include farm machinery, retail seeds, and fuel.

Farm Machinery. Summarization of farm machinery prices occurs at the State and farm production
region levels for analytical purposes only, but is aggregated to the U.S. total for publication. For the
estimation months other than March, data from the
Bureau of Labor Statistics (BLS) are used for construction of the prices paid for farm machinery index. See Table 3.5 for the farm machinery items. See
Table 3.14 for the BLS series in the index.

USDA, National Agricultural Statistics Service

Feed. Feed price data are summarized at the State
level for analysis purposes and
published at the farm production
region and the U.S. levels. Table
3.11 lists the States within each
farm production region. For
months other than March, data
from the BLS data are used in the
construction of the prices paid feed
index. Prices increase for feeds as
the percent protein increases.
However, this may not hold true
when the percent protein is close,
as in 14 percent and 16 percent
dairy feeds or seasonal animal nutrient requirements change. Prices
can also vary as the result of shifts
in demand. See Table 3.6 for the
feed items. See Table 3.14 for the
BLS series in the index.

Fertilizers and Agricultural Chemicals. Fertilizers
are summarized at the State level for analysis and
published at the U.S. and fertilizer region level.
There are nine fertilizer regions. Fertilizer regions
include States grouped according to those with similar purchasing patterns of fertilizers and agricultural
chemicals (USDA, 1970). The States are contiguous
in each region. Figure 2 shows a map of the U.S.
with the nine fertilizer regions. Table 3.12 shows the
States within each fertilizer region. Data from the
BLS are used to construct the fertilizer indexes in
months other than March. See Table 3.7 for the fertilizer and agricultural chemical items. See Table 3.14
for the BLS series in the index.

Agricultural chemicals are summarized at
the State level for analysis and published at the U.S.
level. In months other than March, chemical data
from the Bureau of Labor Statistics are used in the
construction of the agricultural chemical index.
3-9

Figure 2: Nine Fertilizer Regions

Poultry. Poultry prices paid are published at the U.S.
level. NASS does not publish the
poultry prices paid at a lower geographic level. For the estimation
process, NASS does not supplement
the poultry prices paid data from
sources outside the USDA.

Weighting

Fuel. Fuel prices are summarized at the State level
for analysis and published at the U.S. and farm production region level. For months other than March,
data from the Energy Information Agency in the Department of Energy are used for construction of the
fuel index. See Table 3.9 for the fuel items.

Retail Seed. Retail seed prices are summarized at the
State and farm production region levels for analysis
and published at the U.S. level. Seed price data is
reviewed for outliers, reporting unit, and consistency. See Table 3.10 for the retail seed items.

Other Seeds. Other seed prices are published at the
U.S. level. NASS does not publish any seed prices at
a lower geographic level. For the estimation process,
NASS does not supplement the other seed data with
data from sources outside the USDA.

3-10

There are no sample
weights generated from the sampling process. So, there is no
weighting process to adjust the
sample to represent the population
frame. Without sample weights, variance estimation
cannot be performed.

Since there are no sample weights, regional
and U.S. item prices are weighted using State level
weights. State prices generally represent the simple
average of reported prices for a particular item. The
NASS developed tool for setting official estimates
weights state simple average prices to a regional level item prices based on percentage weights from
1990-1992 farm expenditure data. State weights are
aggregated to a regional level for weighting regional
prices to the U.S. level. See Table 3.13 for the relative weights in the Prices Paid index.

The 1990-1992 farm expenditure data provided the subcomponent weights for the feed component of the production index. The item weights
selected for constructing the feed index were derived
from the most current available shipment data from
the annual Survey of Manufacturers and the Census
of Manufacturers.

USDA, National Agricultural Statistics Service

Livestock & Poultry. Replacement livestock weights
were derived from the 1990-1992 FCRS data for
both the item and subcomponent levels. See Table
3.13 for the relative weights of livestock and poultry
in the Prices Paid index.

Farm Machinery. Farm machinery subcomponent
weights were derived from the 1990-1992 FCRS
survey data. Item weights within the subcomponent
were established from Census of Manufacturers data. See Table 3.13 for the relative weights of farm
machinery in the Prices Paid index.

Fertilizers. Fertilizer subcomponent and item
weights are based on the annual commercial fertilizer manufacturers’ data. Currently, these data are
published in collaboration by the Association of
American Plant Food Control Officials (AAPFCO)
and The Fertilizer Institute (TFI). See
http://www.aapfco.org/ and http://www.tfi.org/ for
information about these two organizations, respectively. As a single nutrient, phosphate fertilizer
makes up only two percent of fertilizers consumed
and soil conditioners comprise one percent. Phosphate fertilizer was combined with potassium fertilizer as a result. Soil conditioners are combined with
the mixed fertilizer (N-P-K) group for weighting
into the fertilizer index. See Table 3.13 for the relative weights of fertilizers in the Prices Paid index.

Commercial fertilizer data from AAPFCO
and TFI are based on fertilizer consumption information submitted by state fertilizer control offices.
The data includes total fertilizer sales or shipments
for farm and non-farm use. Liming materials, peat,
potting soils, soil amendments, soil additives, and
soil conditioners are excluded. Materials used for the
manufacture or blending of reported fertilizer grades
or for use in other fertilizers are excluded to avoid
duplicate reporting. Some states do not report final
USDA, National Agricultural Statistics Service

sales; therefore, basic materials including both single-nutrient and multiple-nutrient are reported.

Agricultural Chemicals. Agricultural chemicals subcomponent weights were established using the Census of Manufacturers, Annual Survey of Manufacturers, Agricultural Census, Environmental Protection Agency (EPA) information on expenditures, and
the FCRS survey data. Items weights for subcomponent herbicide and insecticide subcomponents use
reports from Resources for the Future, “Herbicide
Use in the United States” and “Insecticide Use in
U.S. Crop Production”. Item weights for fungicides
and other agricultural chemicals subcomponents
used Chemical Use Survey for Vegetables data. The
agricultural chemicals selected to represent each
subcomponent (herbicides, insecticides, and fungicides/other) account for 25-30 percent of all active
ingredients used with each subcomponent. See Table
3.13 for the relative weights of agricultural chemicals in the Prices Paid index.

Retail Seeds. Retail seed subcomponents weights
were established from the 1990-1992 FCRS data.
Items selected for use in the construction of the seed
index are derived annually using seeding rate, prices
paid for seed, and acres planted parameters. See Table 3.13 for the relative weights of retail seeds in the
Prices Paid index.

Other Subcomponent Weights. Weights for fuels,
farm supplies & repairs, autos & trucks, building
materials, farm services, rent, and taxes were established using FCRS survey data for 1990-1992. See
Table 3.13 for the relative weights for the subcomponents in the Prices Paid index.

3-11

Estimation

The prices paid program includes five commodity groups for which annual survey data provide
indications for establishing official NASS estimates.
Administrative sources provide data for the months
following the annual March survey month. The five
annual prices paid commodity groups surveyed are
farm machinery, feed, fertilizers and agricultural
chemicals, fuels, and retail seeds.

Estimation for the five surveyed commodity
groups occurs in headquarters after the summary has
been finalized. Price estimates at the State, regional,
and U.S. level are finalized in headquarters by using
NASS developed analysis and estimation tools. This
provides a standard basis for establishing State, regional, and U.S. prices from year to year.

The six commodity areas using administrative data for monthly index construction are rent,
custom rates, veterinary services, taxes, insurance,
wage rates, real estate and non real estate interest,
feeder cattle, and feeder pigs. No annual data are
collected for these commodity areas. These commodity groups use the Agricultural Resource Management Survey and the June Agricultural Survey as
indications for prices paid estimates.

Agricultural Resource Management Survey
(ARMS). ARMS is an annual survey of farm and
ranch operators administered by NASS in cooperation with USDA Economic Research Service (ERS).
The annual sample is over 35,000 agricultural producers. ERS uses the data to establish net farm income. NASS uses the data in establishing component level weights for the prices paid index. The
ARMS data are weighted using survey strata sampling rates. Total yearly operation expenditure data
3-12

provides the control data for classifying and sample
selection. The data are also used in the prices paid
estimates program as indications for cash rent, share
rent, veterinary services, taxes, insurance, and real
estate and non real estate debt.. Survey data on fieldlevel production practices, farm business accounts,
and farm households are summarized, synthesized,
and used in analyses by ERS in estimating net farm
income. ARMS is a multiple-phase survey. In the
fall, interviews of producers are conducted to collect
information about production practices and land use
for a selected field on their operation for major
commodities, such as feed grains, food grains, and
cotton. In the spring, producers that completed the
fall survey are re-interviewed. Spring data collection
focuses on the structural and economic characteristics of the farm business and farm operator households. This approach helps link commodity production activities and conservation practices with the
farm business and operator household. Information
about the ARMS program is at http //www.ers.usda.
gov/Briefing/ARMS/.

June Agricultural Survey. Data collected from the
June Agricultural survey and the ARMS survey are
utilized in the prices paid program. The number of
farm estimates and annual expenditure data are used
to derive annual average expenditures per farm for
veterinary services, taxes, and insurance. NASS estimates the number of farms from the June Agricultural Survey. A multiple sampling frame approach is
used. An area sampling frame that divides all land
into segments is built for every State. The list sampling frame is developed from other NASS surveys.
The States check the overlap between the two frames
and supplement the frame data for the June Agricultural survey with the non-overlap records. Sample
segments are selected in each State for enumeration
in early June. Sampling procedures to ensure every
farm and ranch has a chance of being selected. The
NASDA enumerators survey each sampled segment
to identify every farm and ranch operating land in

USDA, National Agricultural Statistics Service

the segment and the number of acres in each operation.

These data are used to compute summary
indications of farm numbers and acres of land in
farms. Additionally, all farms found in the segments
are overlapped with the NASS list frame to determine if the farm is on the list. Operations found in
the area frame sample that are not on the list provide
a measure of incompleteness of the list. Area frame
data for operations overlapping the list frame are not
used in summary to avoid duplication. The summarized totals for these non-overlap (or not-on-list) operations are combined with summarized totals collected from a sample selected from the list to calculate additional indications of farms and land in
farms. Information about land in farm can be found
at http//usda.mannlib.cornell.edu/usda/current/Farm
LandIn/FarmLandIn-02-12-2010_new_format.pdf.

Cash Rent. Two indications for the price per rented
acre are created. One indication is from the ARMS
survey and a second indication is produced from the
cash rents survey along with the Census of Agriculture acreage. The indications, the expenditure per
acre, are calculated by dividing the total cash rent
expenditure by the number of rented acres. There is
a comparison of the percentage of the year to year
change in expenditures between the two indications.
Subject matter experts then determine the most appropriate change between the two indications. The
cash rent indication is approximately equal to the
expenditure per acre, rounded to the nearest dollar.

The cash rents survey is conducted on an
annual basis from March through the end of June.
During June, NASS also collects basic cash rent data
from producers from the June agriculture survey.
States set cash rent estimates at a county level to
aggregate to the official state level using the data
USDA, National Agricultural Statistics Service

from the two sources. Information is at http
//usda.mannlib.cornell.edu/usda/current/AgriLandVa
/AgriLandVa-08-04-2010.pdf about the cash rents.

Public and Private Rent. Prices paid data for private
grazing land rates are collected annually from the
June Agricultural Survey. Under the Public Rangelands Improvement Act, prices paid data for public
grazing land rates are also collected. The Bureau of
Land Management (BLM) and the Forest Service
publish the data annually in February and use the
data to set their annual grazing land fee rates. Public
grazing fees are managed by BLM and the Forest
Service in the 16 contiguous Western States where
there is domestic livestock grazing or where the Secretary of Interior determines the land may be suitable
for domestic livestock grazing. The sixteen contiguous Western States include Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada,
New Mexico, North Dakota, Oklahoma, Oregon,
South Dakota, Utah, Washington, and Wyoming.
The public and private grazing fee rents are established under the Public Rangeland Improvement
Act. Information about the rangelands is at
http//www.fs.fed.us/rangelands/whoweare/lawsregs.
shtml.

Share Rent. Share rent prices paid estimate is set
using ARMS total expenditure data and rented acres
as indications. Expenditures per acre are calculated
by dividing the total share rent expenditures by the
number of rented acres. The share rent estimate for
prices paid is set equal to the expenditure per acre,
rounded to the nearest dollar.

Custom Rates. The custom rates group covers the
producer farm machinery rent costs for earth moving, plowing, cultivating, planting, drilling, chemical
application, silage and hay mowing, hauling, and
harvesting. The custom rates rental costs are aggre3-13

gated to the national level. Custom rates are not altered for the prices paid program.

GfK Kynetec is a provider of marketing research and consulting services within agricultural
and animal health areas. Information about GfK
Kynetec is at http //www.gfk.com/gfk-kynetec/.

Figure 3: Five Regions for Machinery Custom Rates
Five Regions for the Machinery Custom Rates

Northeast
Mountain &
Pacific
Plains

North
Central

South

Veterinary Services. Veterinary services
prices paid estimates are set using
NASS official number of farms
data and total veterinary services
expenditure data from the ARMS
survey. The expenditure per farm
is calculated by dividing total veterinary services expenditure by
the number of farms. The veterinary services are approximately
equal to the expenditures per
farm, rounded to the nearest dollar.

GfK Kynetec

The custom rate data are collected annually
by GfK Kynetec. To collect the custom rates, GfK
Kynetec surveys over 12,000 producers. The producers represent five regions in the U.S., excluding
Alaska and Hawaii. Figure 3 shows the map of the
five regions.

Agricultural producers are contacted via email prior to conducting the survey to provide advance notice of the upcoming survey. Producers
complete the survey either electronically via the web
or by returning a paper questionnaire by mail. Those
without an e-mail address receive a notification letter at same time as the questionnaire. The majority
of the completed surveys are paper questionnaires.

Taxes. Prices paid estimates for
taxes are set using NASS official land in farms data
and total taxes expenditure data from ARMS survey.
The expenditure per acre for taxes is calculated by
dividing the total taxes expenditure by the land in
farms. The taxes estimate is set equal to the expenditure per acre rounded to the nearest dollar.

Insurance. Insurance prices paid estimates are set
using NASS official land in farms data and total insurance expenditure data from ARMS. The expenditure per acre for insurance is calculated by dividing
the total insurance expenditure by the land in farms.
The insurance estimate is set equal to the expenditure per acre rounded to the nearest dollar.

Wage Rates. The estimates are from the NASS farm
labor survey which is conducted quarterly. The farm
labor surveys runs during the last two weeks of every quarter (January, April, July, October) using sampling procedures to ensure every employer of agricultural workers has a chance of being selected. The
3-14

USDA, National Agricultural Statistics Service

reference period is the week including the 12th of
the month for four survey months.

dwellings owned by farm businesses for the prices
paid program.

Two samples of farm operators are selected
from a list of farms that hire farm workers. Farms on
this list are classified by number of workers and type
of farm. Those expected to employ large numbers of
workers are selected with greater frequency than
those hiring few or no workers. A second sample
consists of segments of land scientifically selected
from an area sampling frame. Each June, the
NASDA enumerators survey each selected land
segment to identify every farm operating land within
the sample segment's boundaries. The names of
farms found in these area segments are matched
against the NASS farm labor list frame; those not
found on the list are included in the farm labor survey sample to represent all farms. This methodology
is known as multiple frame sampling. Additionally,
NASS samples a list of agricultural service firms in
California and Florida. Information about the farm
wage rates is available at http //usda.mannlib.cornell
.edu/usda/current/FarmLabo/FarmLabo-11-182010.pdf.

The Farm Credit System provides quarterly
information about the farm credit system. The quarterly statement provides important information in the
debt securities jointly issued by the five Farm Credit
System Banks: AgFirst Farm Credit Bank; AgriBank, FCB; CoBank, ACB; Farm Credit Bank of
Texas; and U.S. AgBank, FCB. These debt securities, include

Real Estate and Non Real Estate Debt and Interest.
Legislation prescribes that interest data used to construct the parity index include that secured by real
estate. Annually, NASS obtains secured real estate
and non real estate (secured or non-secured) debt
and interest data from the Economic Research Service (ERS). Estimate of interest paid by producers is
weighted by real estate and non real estate debt.

Real Estate and Non Real Estate Debt. ERS collects
the real estate and non real estate debt from five
sources, Farm Credit System, Farm Service Agency,
commercial banks, insurance companies, and from
the ARMS survey. ARMS survey data are the source
for taxes and the amount of debt owed for operator
USDA, National Agricultural Statistics Service

Federal Farm Credit Banks Consolidated
Systemwide Bonds,
Federal Farm Credit Banks Consolidated
Systemwide Discount Notes,
Federal Farm Credit Banks Consolidated
Systemwide Master Notes,
Federal Farm Credit Banks Consolidated
Systemwide Medium-Term Notes, and
Any other debt securities that the Farm
Credit System Banks may jointly issue.

Farm Credit System quarterly information
statements relating to financial results or other developments issued by the Federal Farm Credit Banks
Funding Corporation for the current fiscal year and
the two preceding fiscal years are available on the
Funding Corporation’s website located at
www.farmcredit-ffcb.com.

The Farm Service Agency (FSA) provides
ERS a report of debt information in the FSA 616
report. The FSA 616 report is an internal FSA report
containing debt information for producers.
The debt information from the commercial
banks is collected through the Federal Reserve from
the Agricultural Financial Databook. The Board of
Governors surveys a sample of commercial banks
about amounts and purpose of farm loans. The loans
3-15

are primarily for feeder livestock, other livestock,
operating expenses, farm machinery and equipment.
These are non-real-estate farm loans of $1,000 or
more. They are derived from quarterly sample surveys conducted by the Federal Reserve System during the first full week of the second month of each
quarter. Data obtained from the sample are expanded
into national estimates for all commercial banks. The
report is at http://www.federalreserve.gov/releases
/e15/. The Agricultural Financial Databook is at
http//www.kansascityfed.org /research/ indicatorsdata/agfinance/index.cfm.

The debt information from the insurance
companies is collected from the American Council
of Life Insurers (ACLI). The ACLI collects data annually from insurance companies to create the life
insurers fact book. The fact book provides statistics
and information on trends in the life insurance industry. Specific topics covered include assets, liabilities,
income, expenditures, reinsurance, life insurance,
and annuities. Go to http //www.acli.com/ACLI
/Tools/Industry+Facts/Life+Insurers+Fact+Book/
for information about the life insurers fact book.

Interest. ERS collects interest rate data from the
Federal Reserve Bank of Chicago. The Federal Reserve Bank of Chicago provides the interest rates on
a quarterly basis for operating loans, feeder cattle
loans, and farm real estate loans. The series are at
the following location: http//www.chicagofed.org
/digital_assets/publications/agletter/credit_condition
s_7th_district.xls.

The Federal Reserve Bank represents the
seventh district. The States in the seventh district are
Iowa, Illinois, Indiana, Wisconsin, and Michigan.
The Federal Reserve Bank of Chicago collects data
about farmland values and credit conditions from the
agricultural banks in the seventh district on a quarterly basis. Information about the Federal Reserve
3-16

Bank of Chicago can be found at http//www
.chicagofed.org/ webpages/index.cfm.

Feeder Cattle. Livestock reporters are responsible
for compiling a comprehensive record covering all
facets of the feeder cattle trade, including direct trading, livestock auctions, video and internet auctions,
and board sales. It is at the discretion of the reporter
whether to include data that do not accurately reflect
actual market conditions. Premium animals are always included, but sick, dwarf, or crippled cattle are
not included. As the reporter collects the price data,
they are placed in categories based on class. These
class level data are then passed on to NASS via a
secure FTP connection on a monthly basis.

NASS converts the daily weighted average
price into a monthly weighted average price per 100
pounds, using “Head Count” as the weight to produce the feeder cattle estimates. The preliminary,
mid-month price for the current month follows the
same calculation method as the previous full month
price. The calculations exclude feeder cattle weighing 900 pounds or over.

Feeder Pigs. NASS uses data collected by the Agricultural Marketing Service (AMS). AMS collects the
feeder pig data in a similar manner as the feeder cattle data. Feeder pigs 10 pounds or less are excluded.
There are five weight categories for feeder pigs. See
Figure four for the weight categories as well as other
information provided by AMS regarding feeder pig
prices.

After the middle of each month, NASS
retrieves feeder pig data from AMS Market News
through the AMS web site, http //marketnews.usda
.gov/portal/lg.
USDA, National Agricultural Statistics Service

Prices Paid Index
Figure 4: Input Information to Produce
Feeder Pig Report

Type of Information
Report Type

Input Information
Weighted Average (National
Report)

Publication

Weekly

Location

Des Moines, IA

Quality/Grade U.S. 1 2
Weight

40-, 45-, 50-, 55-, 60-.

Dates

Previous Month to Current Week

(typically the week before the last
week of the month)

NASS converts the weekly weighted average prices into a monthly weighted average price per
100 pound, using the head count as the weight to
produce the feeder pig prices paid estimates. The
preliminary mid-month price for the current month
follows the same calculation method as the previous
full month price. The calculations exclude ten pound
pigs.

Agricultural Statistics Board Review

A Board review is held a day before the Agricultural Prices report is issued. The board members include the Agricultural Statistics Board Chairperson; Statistics Division Director; Crops Branch
Chief; Livestock Branch Chief; Environmental,
Economics, and Demographics Branch Chief; and
the Economics Section Head.

USDA, National Agricultural Statistics Service

The Prices Paid Index is a monthly series
that measures the change of average prices in commodities purchased by producers for agricultural
production and family living. “It measures changes
in price only. The index does not measure changes in
production expenses or living expenditure, which are
a product of prices and quantities consumed. ”
(USDA, 1990) The primary purpose of the prices
paid index is to meet the need for a better measure of
price changes in items purchased by producers for
use in agricultural production and family living.
With passage of the Agricultural Adjustment Act of
1933, the index acquired legal status. That act required that the prices paid index be used for the
computation of parity prices.

The prices paid index contains the following indexes
Prices paid by producers for commodities
and services, interest, taxes, and wages
(PPITW);
Prices paid by producers for production, interest, taxes, and wage rates (PITW);
Component indexes: Production, Interest,
Texas, Wage Rates, Family Living (CPI);
Subcomponent indexes include Feed, Livestock & Poultry, Seeds, Fertilizer, Chemicals, Fuels, Supplies & Repairs, Autos &
Trucks, Farm Machinery, Building Materials, Services, and Rents.

The prices paid indexes include approximately 132 items which producers purchase for production. Thirty-one subcomponent indexes are constructed from the item price relatives which are directly related to production. Twelve component indexes are then calculated from the subcomponent
indexes. These twelve component indexes are ag3-17

gregated together into one measure, referred to as
the Prices Paid production index.

The top level index, prices paid index for
commodities, services, interest, taxes, and wage
rates (PPITW) is constructed from the component
indexes of Production, Interests, Taxes, Wage rates
and Family living. This index is parity index. Another top index, prices paid index for commodities,
services, interests, taxes, and wage rates (PITW) is
calculated by aggregating Production, Interests,
Taxes, and Wage rates indexes. The family living
(CPI) component is not included in this top-level
index.

1935 in response to an amendment to the Agricultural Act of 1933. The 1950 index revision further expanded the commodity coverage (USDA, 1990).

A 1959 index revision retained the same major and minor commodity groups and subgroup indexes as included for the 1950 revision. A farm expenditure survey was conducted in 1956 jointly by
the Agricultural Marketing Service and Bureau of
Census. Data from this survey were combined with
those from the survey of Food Consumption made in
1955 by the Agricultural Research Service and the
Agricultural Marketing Service. This provided the
most comprehensive set of basic source data available for developing index group and commodity item
weights (USDA, 1990).

History / Background

The Bureau of Agricultural Economics in
1928 first published an index of prices paid by farmers. It had constructed this index to meet the need of
a better measure of price changes in commodities
bought by farmers for use in the family living and
for production. The weights used for the index had
been determined largely from data collected by
USDA and the Bureau of Census reports. The
weights were based mainly on the available data for
the period 1920-1925. The several subgroups of this
index were combined into major groups representing
prices paid for family living goods and prices paid
for production goods. The aggregative method (price
time quantity weight = item extension) was used in
the construction of the subgroup indexes, but the
subgroup indexes are combined, using percentage
weights.

The 1933 revision revised the initial prices
paid index, at which time budget weights were shifted to average for the period 1924-1929. Interest and
tax components were added to the index in August
3-18

Commodity content of the index groups was
reviewed and, where appropriate, revised in line
with currently available price series and expenditure
patterns. The revision added another link to the index series. The 1950 revision used weights from
1925-1929 for computing indexes for 1910-1934,
and weights representing the period 1937-41 were
used from March 1935 forward. The weight period
of 1955 was used for September 1952 through December 1964. The index series was linked again in
January 1965 using 1971-1973 weights (USDA,
1990).

Several changes have been made to the index construction with the most recent occurring in
1995. The latest index revisions included (1) The
five-year moving average weights being substituted
for the fixed base-year weights to reflect the change
of farmer’s purchasing pattern; (2) The new reference and base price period is 1990-1992 which coincides with the price received index and maintains
comparability for purpose of computing parity prices; and (3) Prices paid sector indexes for Crop and
USDA, National Agricultural Statistics Service

Livestock farms were established separately for the
first time.

bles 3.13-3.16). The coverage of the prices paid index has no major change since 1970s.

Reference period selection

Prior to 1977, NASS conducted prices paid
surveys for food, clothing, and household items to
measure the changes in prices producers paid for
family living expenditures. Based on the similarities
in prices paid and comparable spending patterns between producers and urban consumers, NASS replaced the family living index with the Consumer
Price Index for all Urban Consumers (CPI-U) starting in January 1977.

In developing the indexes, a crucial choice
was the initial base period. The period desired was
one in which prices were stable and the general
economy was healthy. Because prices were unstable
following World War I, USDA undertook an extensive analysis of the dispersion of wholesale prices
from 1891 through 1926. The period 1905-1915 exhibited relative stability. Because it was the most
stable period, 1910-1914 was selected as the base
period for the index. The Agricultural Adjustment
Act of 1938 adopted the 1910-1914 period as the
basic reference period for agricultural indexes used
for Government farm programs (USDA, 1990).

The period 1990-1992 as a new reference
date was selected for the same reasoning. The current reference and base price period is 1990-1992
which coincides with the prices received indexes and
maintains comparability for purpose of computing
parity prices. Overall prices paid by producers for
commodities and services, interest, taxes and wage
rates (PPITW) for the 1990-1992 period were close
to being on the trend of the last fifteen years, a period of relatively stable inflation following a period of
high inflation (Milton, 1995).

Commodity Selection

The prices paid index includes 132 items
that cover areas such as feed, livestock and poultry,
seed, fertilizer, chemicals, fuels, farm machinery,
building materials, rent, interest and taxes (see TaUSDA, National Agricultural Statistics Service

The overall weight for the family living
component of the prices paid index is derived from
household expenditures from the ARMS survey,
similar to other expenditure groups. In fact, the relative weight of the family living component in the
index has declined from 30.4 percent for the 19711973 period to the current value of 17 percent. The
decline is a result of the total number of farm households declining and the proportion of production
expenditures per farm increasing.

NASS selected Producer Price Index (PPI)
data from Bureau of Labor Statistics (BLS) to substitute for quarterly prices paid survey data in the
construction of the 1990-1992 = 100 based indexes.
Items less than 0.01 percent of total farm expenditures are excluded from the current index. Generally,
the PPI index data such as for hand tools, power
tools, and construction materials, etc., have been
selected that represent groups of these items. The
PPI data, therefore, represents a broader coverage of
the expenses for relatively small production input
items. The twelve production component indexes
plus the Family Living, Interest, Taxes, and Wage
rates component indexes represent over 90 percent
of producers' total expenditures (See Table 3.14).

3-19

In using the BLS indexes, several factors
were evaluated. First, BLS data lags a month behind
NASS’s price report. Even with the one month lag,
analysis produced significantly similar data trends
for major farm input components. For example, in
January, the index uses the December BLS indexes
to measure price change. Second, the BLS price data
based on a different mix and weighting of indexes
items still were consistent to NASS data covering
similar items. Third, the impact of BLS wholesale
versus retail, urban versus rural, and adjustment for
quality on price change still produced highly correlated results with NASS data (Milton, 1995). Below
are the results from the analysis. The periods of
comparison vary due to data availability.
Component
Agricultural chemicals
Autos & trucks
Building materials
Farm supplies & repair
Feed
Fuels
Other machinery (mach.)
Tractors & self propelled mach.

Period
1985 – 1993
1975 – 1993
1975 – 1993
1985 – 1993
1980 – 1993
1975 – 1993
1975 – 1993
1984 – 1993

Corr.
0.83
0.97
0.95
0.87
0.80
0.74
0.98
0.96

In addition to the 12 production component
indexes, 31 separate subcomponent production indexes were created (see Table 3.16). These subcomponent indexes were published beginning January
1994 for the 1990-1992=100 base period. The subcomponent indexes are not constructed on a 19101914=100 base period as a result of the unavailability of representative data prior to 1990-1992 and
resource constraints (Milton, 1995).

Basis of Weights

The prices paid index weights are derived
based on expenditure data from the annual Farm
Costs and Returns Survey (FCRS), which was replaced by Agricultural Resource Management Study
(ARMS) in 1996. One of primary uses of farm pro3-20

duction expenditure data is for weighting in the construction of prices paid indexes. To facilitate 1995
price index revision, changes in component items
were made. Oils and lubricants were moved from
fuels to farm supplies and repairs; repairs and
maintenance expenditures were moved from other
farm machinery to farm supplies and repairs; and the
category building and fencing was combined with
farm and land improvements to make the building
materials category. Estimates for these levels were
revised back to 1975 at the U.S. level to provide a
more useful series for prices paid index construction
and other data users.

Production and consumption habits change
over time with respect to commodities included in
the prices paid index. For example, since the period
1970-1973, the relative weight of the family living
component has declined over 13 percent while
weights increased for the overall production component 12 percent, and wage rate 2.3 percent. The organizations of agricultural operation also change as
markets shift or expand, such as, the dramatic increase in contractual sales, vertical integration, and
pervasive effect of technology and intellectual property on the concentration of input industries. On the
whole such changes come rather gradually except
for current fluctuations arising from changes in supply, buying power, technology innovation, etc. The
five-year moving average weights as implemented in
the 1995 revision to somewhat represent these market pattern shifts. The farm expenditure weights used
for computing prices paid index are similar to the
method used in the price received index. It is updated every year. It also has the two-year lag because of
data availability. Therefore, the data used are from
the most recent five years available. The five-year
moving average weights are also decomposed into
crop and livestock sector weights for calculating
PPITW index for crop and livestock sector farms.

USDA, National Agricultural Statistics Service

While the weights of component are updated
annually from the ARMS data, the weights of subcomponent and items remained at base year values
(1990-1992) because of reduced funding, respondent
burden, and resource concerns. Though the relative
weights (relative importance) of subcomponent
items are published every year with new values. It
should be not confused that the values of relative
weights are calculated based on the five-year moving weight of component items multiplied by the
fixed weights of subcomponent items which were
derived at the base year (1990-1992) ARMS data.
Thus the actual weights of subcomponent items used
to compile component indexes are the fixed base
weights. The following example provides an illustration.
Relative Weights
Base Weight 2009
2010
Seeds
3.84
3.92
Field Crop
0.906
3.48
3.55
Grass/Legumes 0.094
0.36
0.37
A subcomponent item, field crop seeds has a
relative weight of 3.48 for year 2009 and 3.55 for
2010. However, the base weight 0.906 remains the
same and is used to compile the component index
seeds. The same follows for grass/legumes seeds.

All subcomponent items and commodities
are not fixed at the base weights. A few of them, like
diesels, gasoline, LP gas, real estate interest and
non-real estate interest, etc. are updated periodically
when data is available. These weights are calculated
based on the most current available year’s ARMS
data instead of five-year average. Table 3.17 shows
relative weights of the component indexes for Prices
Paid for selected years.

USDA, National Agricultural Statistics Service

Component & Sub-component indexes

The indexes of prices paid by producers
contain individual component indexes and high level
indexes such as Prices Paid by Producers for Commodities, Services, Interest, Taxes, and Wage Rates
(“PPITW”); and an index of Production, Interest,
Taxes and Wage Rates (“PITW”). The PPITW index
consists of a production group and a non-production
group of component indexes. The production group
includes feed, livestock and poultry, seeds, fertilizer,
agricultural chemicals, fuels, supplies & repairs, autos & trucks, farm machinery, building materials,
services, and rent indexes. This group is also used
for constructing the production index. The nonproduction group contains interest, taxes, wage rates,
and family living (CPI) component indexes. The
PITW index is the PPITW index reweighted excluding the family living index. The other high level indexes include the crop sector (PPITW), livestock
sector (PPITW), farm sector (Production) and nonfarm sector (Production). These indexes and component indexes are published monthly. See Table 3.15
for the relative weights of the component indexes.

The component indexes are broken-down
further to sub-component indexes and items. The
prices paid indexes contain 31 sub-components, such
as complete feeds, feed grains, hay/forages, concentrates, and supplements for the feed component index. The field crops and grasses/legumes subcomponent indexes make up the seed component index.
Table 3.13 provides a complete list of the relative
weights of subcomponents as well as items for indexes of prices paid by producers. The monthly and
annual average subcomponent indexes are published
in the January Agricultural Prices release.

3-21

Link Date Selection and Link Process

Index Computation & Benchmark Process

NASS has constructed the 1990-1992=100
prices paid indexes back to 1975 using the 5-year
moving average weights established from the FCRS.
Starting in 1990, the indexes reflect the new items
and BLS data within the component indexes. For
1975 through 1990, the 1990-1992=100 indexes reflect changes in the revised 1910-1914=100 indexes
and the weight change from fixed to moving average
weights, but price movements are still measured by
the items in the prior indexes. Price and weight data
are not available for the new items to reconstruct the
1990-1992=100 indexes back to 1975. Price movements for items within major expense groups or
component indexes tend to be similar so capturing
the changes in weights among component indexes,
or expenditure groups, is more important than
changes in weights among items within a component
index.

Indexes of prices paid by producers are fiveyear-moving-weight price indexes computed with a
modified form of the Young formula. It is a modified form of the Young formula instead of the
Laspeyres formula because the weights used in constructing price index are in between the base period,
1990-1992 = 100, and the current period. The modification permits the weights to take the form of the
five-year average to reflect any shift in the producers’ purchasing patterns among the component
items.

For example, if the price base reference is
1977 (1977 = 100), the Fertilizer average price index
is 141 for 1990-1992. If the price base reference
changes to 1990-1992 (1990-1992 = 100), then the
Fertilizer price index for 1977 becomes 71. To convert the 1977 base index to 1990-1992, divide 100
by 141 to equal 71.

The 1910-1914=100 indexes required for
parity purposes have been revised to reflect the
changes in the newly constructed 1990-1992=100
indexes. The 1910-1914 indexes were linked forward starting in January 1975 based on changes in
the 1990-1992 indexes. January 1975 was chosen as
the link data since it corresponds to the prices received link date and the date where use of the prior
1971-1973 fixed weights was current (Milton,
1995).

3-22

Unlike the price received indexes no seasonal adjustment is made in construction of the prices
paid indexes. Therefore, directly comparing the prices paid indexes among the different months within a
year is appropriate because they are constructed with
the same basket. Another difference between the
prices received and prices paid indexes is that the
prices paid index is benchmarked. Six components,
agricultural chemicals, fertilizer, seeds, fuels, feeds
and farm machinery, are benchmarked annually. The
linked indexes from BLS and EIA for these components are used to compile the monthly prices paid
indexes when survey data are not available. A survey for all items in these components is conducted in
March. In April, the prices paid indexes for the
months between last March and current March are
adjusted based on survey prices to account for differences between the linked indexes and the indexes
calculated with actual NASS survey data.

In consequence, three types of index or price
relative for the prices paid indexes at the item level
are specified. The first type is the estimation type
which is based on survey data and prices produced
in the NASS estimation process. The second type is
a linked one in which price index calculations are
linked to outside sources. The last type is the linked
USDA, National Agricultural Statistics Service

and benchmarked type which means an item is
linked to another indication mainly from BLS when
survey data is not available. It then will be benchmarked when the survey data is available.

The formula for the first two types is essential the same, the price relative or index equals the
current price or linked index divided by base price or
linked index correspondingly. That is

pcj
* 100
pbj

Pc j

Where
is the index or price relative of j th commodity for the current month, is the item price or
linked index of jth commodity for the current month,
and represents the item price or linked index of jth
commodity for the base period.

The third type is complex. It is for the items
in components of chemicals, fertilizers, fuels, and
farm machinery. The form of formula is determined
by the availability of survey data. When price data
are available the formula is

Pc

j

p0j Lcj
*
* 1
pbj L0j

Tc T0
p1j L0j
* j* j
T1 T0
p0 L1

1

When price data are not available the formula becomes

Pc

j

p0j Lcj
*
pbj L0j

Where
is the index or price relative of j th commodity for the current month, indicates the previous date a price survey has conducted for jth commodity, represents the current date price (survey)
data are available for jth commodity, is a date for
the current reference period (month here) which is in
reference date between
and ,
and
repreUSDA, National Agricultural Statistics Service

sent the price and linked index of jth commodity for
period
respectively,
and
correspond to the
th
price and linked index of j commodity for period
respectively, stands for the item price of jth commodity for the base period.

For example, a tractor with 2 wheel drive
and 50-59 hours power (HP) base price is $18,333,
NASS survey prices are $25,000 for March 2010
and $25,700 for March 2011, BLS index are 121.7
for March 2010 and 122.8 for March 2011. Using
the above equation, the price index of Tractor with 2
wheels and 50-59 HP becomes 136 for March 2010
and 137 for April 2010.

In the literature of index numbers, it is generally agreed that the price relatives should be
“weighted” by “value,” since the importance of a
price change in a given context is usually at least
roughly proportional to the value of the commodity
of the price change which is measured by the relative. The farm production expenditure is measured in
terms of value which contains the quantity farmers
purchased for their production and the price paid for
the purchase. The prices paid indexes, subcomponent, component, and the up-level indexes, are all
computed as weighted price relatives (at U.S. level).
The formula then is defined as a modified Young
index

wyj pcj

Ic
j

Where is an index of the current month; is a
price relative or an index of jth commodity for the
current month;
is a weight of jth commodity for
year y. However, the weights may be different when
compiling sub-component level indexes. The weight
is fixed at the base period when compiling a subcomponent and a component index. The weight will
be updated every year when constructing all up-level
indexes.
3-23

The prices paid up-level indexes include the
PPITW which is the all components index; PITW
which consists of all components except Family Living; PPITW for the Crop and Livestock sectors
which are indexes constructed using weights derived
from Crop farm expenditures and Livestock farm
expenditures respectively; Production index which
excludes the component of Interest, Taxes, Wage
Rates and Family Living; Production index which is
also decomposed into farm and non-farm production
index accordingly, the former consists of Feed,
Livestock & Poultry and Seeds components, the later constructed by the rest of components (see Table
3.15).

Uses and Limitations

NASS uses the prices paid index (PPITW)
to compute Parity Prices under the Agricultural Adjustment Act of 1938 as amended, Title III, Subtitle
A, Section 301a. Agricultural Marketing Service
uses state milk marketing orders, prices paid indexes, and import prices to determine support prices.

Price indexes are widely used but are often
misunderstood. To use indexes effectively, the analyst should know the components of the index and
the items priced. A price index measures the change
in prices from some reference point (base period) to
another point in time. Items in the index are
weighted by their importance. The current base price
period is 1990-1992. The base price is derived for
each item’s average price for the period 1990-1992.
The quantity weights of items and subcomponents
are based on farm production expenditures for period 1990-1992 except for a few exemptions such as
diesel, gasoline, LP gas, real estate interest, non-real
estate interest, etc. which are updated periodically.
The base prices and majority of the item weights and
subcomponents remain fixed from month to month
and from year to year. However, quantity weights of
3-24

components are based on five-year moving average
of ARMS data with a two year lag and are updated
every year by adding a most recent year and removing the earliest year (USDA, 1990).

Index users should be aware of the items being priced for computation of an index. Producers
use thousands of items and services in agricultural
production and it is not feasible to price every item.
For complex price indexes, expenditures are grouped
into major index components, such as feed, fertilizer,
agricultural chemicals, farm machinery, fuels, and
farm supplies. Within each of the component indexes, items must be selected for pricing. Because it is
not feasible to price all items, selected individual
items must represent groups of expenditures. The
production component of the Prices Paid Index consists of fewer than 140 items. Questions considered
in selecting items for the index and price series include:
Is the item specification well defined?
Is the volume of sales adequate to obtain reliable prices?
Does the item have widespread or limited geographic use?
Is the item subject to rapid changes in design
or function, and if so, how does this affect
price?
Are reported prices based on transactions or
list prices? What adjustments are made for
discounts, rebates, credit, delivery, sale tax,
and other conditions of sale?
Are reported prices based on transactions or
list prices?
How reliable are the available data? How
large is the sample, and what is the magnitude of sampling and non-sampling errors?
How frequently are prices surveyed, how
volatile are the prices?

USDA, National Agricultural Statistics Service

Users of the prices paid indexes may wish to
check the items used to compute the index for adequate coverage and to determine whether the combination of items may have some type of bias.

Numerous uses are made of the prices published for individual items. The actual price level is
secondary to measuring price changes. A biased
price level can provide good measures of price
change for index use. To have all prices at the proper
level would require large increases in sample sizes.
The data collection costs would far exceed currently
available resources. The Prices Paid Index is designed to measure price changes for production and
family living expenditures from a base period. Not
all expenditures, however, are represented because
of the cost of data collection. Sometimes purchases
are infrequent or the item is custom designed for
each application, as is often true for farm buildings.
A large number of items can make up a small percentage of the index, and a few priced items must
represent many functionally different items such as
farm supplies. Sometimes proxy items can be substituted. In other cases, these purchases are represented
by one of the component indexes or the overall index. Indexes are computed for individual component
indexes of the prices paid index, using an aggregative approach (Laspeyres formula). Component indexes are weighted by percentage weights based on
expenditure categories for the base-weight period.
For the current prices paid index, the items priced
represent 80 to 90 percent of total U.S. expenditures
for that item.
The Prices Paid indexes does not adjusted
for changes in quality or other enhancements of
items purchased, especially when the item priced
have changed significantly over time. With farm
machinery, for example, the basic functions have not
changed, but current models are much different from
those 30 or 40 years ago.

USDA, National Agricultural Statistics Service

Publication and Dissemination

Prices paid item prices are published in the
April Agricultural Prices report. NASS publishes
prices paid estimates at the U.S. level for all commodities in the five survey groups. Also, regional
prices are available for fuels, fertilizers, and feed.
No state level data are published. Price revisions for
these five survey groups do not occur as no new or
additional price data are available to support revising
the already published data.

Publication Process

NASS developed software to structure the
prices paid estimates in tabular format. A composed
draft copy of the April Agricultural Prices report is
generated for review for format changes by early
April. Final estimates are again reviewed in the published formatted tables prior to release.

A file to populate the NASS QuickStats database is created at the time of final composition of
the published report. A final review of QuickStats
occurs prior to release. Go to http://www.
nass.usda.gov/Data_and_Statistics/Quick_Stats/inde
x.asp for the Quick Stats database.

Publication Constraints. NASS strives to establish
and publish prices paid estimates on all data series.
There are situations, however, that require an aggregation of the estimates. Also, estimates may not be
published if disclosure of an individual operation is
possible. Reported data are protected by Title 7 of
the U.S. Code. Title 7 can be found at http://
www.law.cornell.edu/uscode/7/.

3-25

In the event of a publication constraint,
footnotes are used to inform the reader of the reason.
The two most common reasons for not publishing
data are:

The main method of dissemination for reports is from the USDA-NASS website. The reports
are available at www.nass.usda.gov. The reports and
data are in the following formats:

(D) Withheld to avoid disclosing data for individual operations.
(S) Insufficient number of reports to establish an
estimate.

in a text format,
in a pdf format,
in a downloadable format for spreadsheets or
databases via a comma separated value (csv)
format, and
QuickStats searchable database.

Revisions. Prices paid estimates for annual surveyed
items are not revised in subsequent years as no new
information is available to support a revision.
The monthly items are subject to revision
the following month. Monthly items are limited to
feeder cattle and feeder hogs. Revisions are supported for these items as additional transactions are
available. In order to publish Agricultural Prices,
only data for the first half of the month is processed.

Dissemination

Agricultural Prices estimates are disseminated to the public through monthly reports at the
end of each month. The April Agricultural Prices
report with the prices paid estimates is released on
the last business day of April. The monthly report is
issued at 3:00 p.m. Eastern time. The 3:00 p.m. embargo and simultaneous access applies to all forms
of dissemination. Electronic data and hard copy publications are made available simultaneously. Prior
disclosure of data is unlawful, with penalties of fine
and imprisonment. The April report can be found at
the following website http //usda.mannlib. cornell.edu/MannUsda/viewDocumentInfo.do?documen
tID=1002 by clicking on the appropriate year and
month.

3-26

QuickStats is an on-line searchable database. Customers can obtain the specific data items of interest.
These data items of interest are also available historically and can be downloaded. Feed price ratios are
populated into the QuickStats database monthly. The
QuickStats database can be found at the bottom of
http://www.nass.usda.gov/ or at http//www.nass.
usda.gov/Data_and_Statistics/Quick_Stats/index.asp

Historic Data. The last five years of prices paid indexes are published quarterly (January, April, July,
and October) in Agricultural Prices. However, revised indexes are calculated monthly and posted to
the Quick Stats database. These monthly revisions
are meant to improve the timeliness of the data series. These revised estimates are official NASS estimates. Electronic versions (pdf files) are also available for Agricultural Prices reports dating back to
1964. These files contained “scanned” copies of the
original hard copy reports.

USDA, National Agricultural Statistics Service

References

Milton, B., Kleweno, D., and Vandeberry, H. (1995,
January). Reweighting and reconstructing
USDA’s indexes of prices received and paid
by farmers. ESB Staff Report No. ESB-9501.
Stauber, B.R., Koffsky, N.M., and Randall, C.K.
(1950, April). The revised price indexes.
Agricultural Economic Research, Vol. II,
No. 2.
USDA. (1952, May). A Reference Manual on Parity
Price, Index of Prices Paid by Farmers, and
Index of Price Received

USDA, National Agricultural Statistics Service

USDA. (1957, October). Major Statistical Series of
the U.S. Department of Agriculture, Agricultural Handbook. No. 118, Vol. 1.
USDA. (1964, December). Statistical Reporting
Service of the U.S. Department of Agriculture, Miscellaneous Publication. No. 967.
USDA. (1970, October). Major Statistical Series of
the U.S. Department of Agriculture, Agricultural Handbook. No. 365, Vol. 1.
USDA. (1990, April). Major Statistical Series of the
U.S. Department of Agriculture, Agricultural Handbook. No. 671, Vol. 1.

3-27

Appendix of Tables
Table 3.1. Target Sample by State for Prices Paid Survey Groups

State

Machinery

United States ...
Alabama ..........
Arizona ...........
Arkansas .........
California ........
Colorado .........
Connecticut .....
Delaware .........
Florida ............
Georgia ...........
Idaho ...............
Illinois .............
Indiana ............
Iowa ................
Kansas ............
Kentucky.........
Louisiana ........
Maine ..............
Maryland.........
Massachusetts .
Michigan .........
Minnesota .......
Mississippi ......
Missouri ..........
Montana ..........
Nebraska .........
Nevada ............
New Hampshire
New Jersey......
New Mexico ...
New York .......
North Carolina
North Dakota ..
Ohio ................
Oklahoma .......
Oregon ............
Pennsylvania ...
Rhode Island ...
South Carolina
South Dakota ..
Tennessee .......
Texas ..............
Utah ................
Vermont ..........
Virginia ...........
Washington .....
West Virginia..
Wisconsin .......
Wyoming ........

1,700
55
0
50
60
55
0
0
0
50
55
65
65
55
55
50
45
0
0
0
55
60
0
60
50
60
0
0
0
0
55
55
50
60
50
55
55
0
45
55
55
65
0
0
50
55
0
50
0

3T-1

Feed
2,100
75
50
75
75
65
10
15
70
75
75
80
75
80
75
65
0
15
50
10
65
65
75
80
0
75
0
15
0
0
75
75
0
80
80
70
75
0
0
0
0
80
0
15
0
75
0
65
0

Chemicals
2,440
50
30
50
125
60
0
0
90
90
50
115
55
65
50
45
45
0
0
0
100
100
45
65
45
55
0
0
40
0
95
100
45
55
50
90
100
0
90
45
45
100
0
0
50
90
0
115
0

Fuels
2,150
55
0
55
70
65
15
0
55
55
65
65
65
65
65
65
55
25
0
20
55
65
55
65
65
65
0
15
0
0
70
65
50
65
65
70
70
0
55
50
65
65
0
25
65
70
0
55
0

Seed
1,600
30
10
30
25
25
5
5
10
15
30
115
60
55
45
20
20
5
20
5
20
45
30
140
20
110
10
5
5
5
20
75
40
65
70
25
35
5
15
35
35
55
10
40
10
45
25
55
20

Screener
19,431
489
13
337
830
50
33
1
186
635
153
823
367
2,019
500
297
49
75
31
39
481
962
443
1,123
26
886
1
42
42
1
283
1,184
435
264
238
222
668
12
208
382
227
762
1
53
228
3,038
1
290
1

USDA, National Agricultural Statistics Service

Table 3.2a. Sample and Screening Counts for Farm Machinery
State
United States ...
Alabama ..........
Arizona ...........
Arkansas .........
California ........
Colorado .........
Connecticut .....
Delaware .........
Florida .............
Georgia ...........
Idaho ...............
Illinois .............
Indiana ............
Iowa ................
Kansas .............
Kentucky .........
Louisiana.........
Maine ..............
Maryland .........
Massachusetts .
Michigan .........
Minnesota .......
Mississippi ......
Missouri ..........
Montana ..........
Nebraska .........
Nevada ............
New Hampshire
New Jersey ......
New Mexico ....
New York ........
North Carolina
North Dakota...
Ohio ................
Oklahoma ........
Oregon ............
Pennsylvania ...
Rhode Island ...
South Carolina
South Dakota...
Tennessee ........
Texas ...............
Utah.................
Vermont ..........
Virginia ...........
Washington .....
West Virginia ..
Wisconsin .......
Wyoming ........

Sample
Target
Actual
1,700
2,040
55
66
0
0
50
60
60
72
55
66
0
0
0
0
0
0
50
60
55
66
65
78
65
78
55
66
55
66
50
60
45
54
0
0
0
0
0
0
55
66
60
72
0
0
60
72
50
60
60
72
0
0
0
0
0
0
0
0
55
66
55
66
50
60
60
72
50
60
55
66
55
66
0
0
45
54
55
66
55
66
65
78
0
0
0
0
50
60
55
66
0
0
50
60
0
0

USDA, National Agricultural Statistics Service

Screening Operation
Pre
Post
3,588
3,825
56
123
1
1
76
112
139
141
53
62
1
2
1
0
1
16
111
92
70
87
78
174
88
78
322
259
119
124
122
153
48
55
1
18
6
9
1
4
75
99
89
93
49
74
101
132
55
59
223
177
1
2
1
3
1
6
1
1
109
81
290
193
104
121
96
101
102
105
52
67
200
180
1
1
76
88
113
106
85
131
166
151
1
1
1
2
88
73
68
91
1
3
144
173
1
1

3T-2

Table 3.2b. Sample and Screening Counts for Feed
State
United States ...
Alabama ..........
Arizona ...........
Arkansas .........
California ........
Colorado .........
Connecticut .....
Delaware .........
Florida ............
Georgia ...........
Idaho ...............
Illinois .............
Indiana ............
Iowa ................
Kansas ............
Kentucky.........
Louisiana ........
Maine ..............
Maryland.........
Massachusetts .
Michigan .........
Minnesota .......
Mississippi ......
Missouri ..........
Montana ..........
Nebraska .........
Nevada ............
New Hampshire
New Jersey......
New Mexico ...
New York .......
North Carolina
North Dakota ..
Ohio ................
Oklahoma .......
Oregon ............
Pennsylvania ...
Rhode Island ...
South Carolina
South Dakota ..
Tennessee .......
Texas ..............
Utah ................
Vermont ..........
Virginia ...........
Washington .....
West Virginia..
Wisconsin .......
Wyoming ........

3T-3

Sample
Target
Actual
2,100
2,520
75
90
50
60
75
90
75
90
65
78
10
12
15
18
70
84
75
90
75
90
80
96
75
90
80
96
75
90
65
78
0
0
15
18
50
60
10
12
65
78
65
78
75
90
80
96
0
0
75
90
0
0
15
18
0
0
0
0
75
90
75
90
0
0
80
96
80
96
70
84
75
90
0
0
0
0
0
0
0
0
80
96
0
0
15
18
0
0
75
90
0
0
65
78
0
0

Screening Operation
Pre
Post
6,263
6,855
341
256
59
37
131
144
156
115
73
75
32
34
1
37
111
103
219
207
87
90
407
390
158
154
563
484
196
252
180
206
1
49
69
85
73
45
48
44
150
192
378
327
193
145
474
428
1
66
309
325
1
3
44
38
1
12
1
0
135
125
163
184
1
143
133
221
167
186
210
151
318
302
5
6
1
49
11
175
1
120
255
275
1
4
50
44
61
114
175
170
1
20
117
214
1
9

USDA, National Agricultural Statistics Service

Table 3.2c. Sample and Screening Counts for
Fertilizer & Agricultural Chemicals
State
United States ..
Alabama .........
Arizona ...........
Arkansas .........
California .......
Colorado.........
Connecticut ....
Delaware ........
Florida ............
Georgia...........
Idaho ..............
Illinois ............
Indiana ...........
Iowa ...............
Kansas ............
Kentucky ........
Louisiana ........
Maine .............
Maryland ........
Massachusetts
Michigan ........
Minnesota .......
Mississippi .....
Missouri .........
Montana .........
Nebraska ........
Nevada ...........
New Hampshire
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota ..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota ..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin .......
Wyoming........

Sample
Target
Actual
2,440
2,928
50
60
30
36
50
60
125
150
60
72
0
0
0
0
90
108
90
108
50
60
115
138
55
66
65
78
50
60
45
54
45
54
0
0
0
0
0
0
100
120
100
120
45
54
65
78
45
54
55
66
0
0
0
0
40
48
0
0
95
114
100
120
45
54
55
66
50
60
90
108
100
120
0
0
90
108
45
54
45
54
100
120
0
0
0
0
50
60
90
108
0
0
115
138
0
0

USDA, National Agricultural Statistics Service

Screening Operation
Pre
Post
8,462
8,027
281
219
30
36
156
190
296
212
57
65
1
23
1
9
101
131
347
268
136
127
431
537
247
208
1290
633
213
248
183
221
73
74
1
48
1
28
1
25
199
250
456
352
202
183
332
387
53
83
449
351
1
2
1
27
71
49
1
0
193
121
260
243
216
241
160
245
166
178
88
122
294
282
1
1
140
104
244
205
183
148
403
322
1
4
1
28
161
118
169
177
1
18
169
480
1
4

3T-4

Table 3.2d. Sample and Screening Counts for Fuel
State
United States .......
Alabama ..............
Arizona ...............
Arkansas .............
California ............
Colorado .............
Connecticut .........
Delaware .............
Florida ................
Georgia ...............
Idaho ...................
Illinois .................
Indiana ................
Iowa ....................
Kansas ................
Kentucky.............
Louisiana ............
Maine ..................
Maryland.............
Massachusetts .....
Michigan .............
Minnesota ...........
Mississippi ..........
Missouri ..............
Montana ..............
Nebraska .............
Nevada ................
New Hampshire ..
New Jersey..........
New Mexico .......
New York ...........
North Carolina ....
North Dakota ......
Ohio ....................
Oklahoma ...........
Oregon ................
Pennsylvania .......
Rhode Island .......
South Carolina ....
South Dakota ......
Tennessee ...........
Texas ..................
Utah ....................
Vermont ..............
Virginia ...............
Washington .........
West Virginia......
Wisconsin ...........
Wyoming ............

3T-5

Sample
Target
Actual
2150
2580
55
66
0
0
55
66
70
84
65
78
15
18
0
0
55
66
55
66
65
78
65
78
65
78
65
78
65
78
65
78
55
66
25
30
0
0
20
24
55
66
65
78
55
66
65
78
65
78
65
78
0
0
15
18
0
0
0
0
70
84
65
78
50
60
65
78
65
78
70
84
70
84
0
0
55
66
50
60
65
78
65
78
0
0
25
30
65
78
70
84
0
0
55
66
0
0

Screening Operation
Pre
Post
12243
6809
243
149
1
0
235
182
587
230
103
81
26
15
1
2
197
92
291
147
116
99
333
326
236
154
589
406
349
241
177
132
73
55
43
31
1
6
22
29
360
204
608
363
250
77
668
256
78
93
344
294
1
0
28
19
1
7
1
0
174
83
824
295
320
217
185
154
61
106
170
106
273
160
6
6
193
95
231
174
158
122
355
178
1
1
44
27
114
74
2963
1047
1
8
207
265
1
1

USDA, National Agricultural Statistics Service

Table 3.2e. Sample and Screening Counts for Retail Seed
State
United States ..
Alabama .........
Arizona ...........
Arkansas .........
California .......
Colorado.........
Connecticut ....
Delaware ........
Florida ............
Georgia...........
Idaho ..............
Illinois ............
Indiana ...........
Iowa ...............
Kansas ............
Kentucky ........
Louisiana ........
Maine .............
Maryland ........
Massachusetts
Michigan ........
Minnesota .......
Mississippi .....
Missouri .........
Montana .........
Nebraska ........
Nevada ...........
New Hampshire
New Jersey .....
New Mexico ...
New York .......
North Carolina
North Dakota ..
Ohio ...............
Oklahoma .......
Oregon ...........
Pennsylvania ..
Rhode Island ..
South Carolina
South Dakota ..
Tennessee .......
Texas ..............
Utah ................
Vermont .........
Virginia ..........
Washington ....
West Virginia .
Wisconsin .......
Wyoming........

Sample
Target
Actual
1,600
30
10
30
25
25
5
5
10
15
30
115
60
55
45
20
20
5
20
5
20
45
30
140
20
110
10
5
5
5
20
75
40
65
70
25
35
5
15
35
35
55
10
40
10
45
25
55
20

1,920
36
12
36
30
30
6
6
12
18
36
138
72
66
54
24
24
6
24
6
24
54
36
168
24
132
12
6
6
6
24
90
48
78
84
30
42
6
18
42
42
66
12
48
12
54
30
66
24

USDA, National Agricultural Statistics Service

Screening Operation
Pre
Post
1,488
54
9
69
21
18
5
1
8
12
25
81
57
62
39
24
13
9
22
3
77
40
24
114
17
112
6
3
24
3
14
42
35
52
50
22
41
1
13
35
25
38
9
6
34
36
20
50
13

7,254
169
35
188
134
68
29
11
96
222
107
571
213
536
232
218
59
57
34
23
282
351
148
429
66
326
5
30
22
3
110
215
227
252
179
118
223
2
76
193
140
293
8
37
110
158
18
220
11

3T-6

Table 3.3. List of Business Status Codes for Prices Paid

Business Status Code
Active
Another Name Associated with Operation
Census Split
Duplicate
Farm Management Service
Idle Agribusiness Facility
Idle Land
Major Name Change
Native American Operator
Non-Agriculture Never Farmed
Non-Farm Equine Only
Non-Respondent
Out-of-Business
Potential Farm
Potential Future Sales
Previously Inactive
Refusal

3T-7

USDA, National Agricultural Statistics Service

Table 3.4. Case Disposition Codes For Data Collection Activities
Data Collection Activi- Disposition Code
Description
ty
Mode

Mail
Telephone
Face-to-Face
CATI
Web
E-mail
FAX
CAPI
Other

Self-administered survey submitted via mail
Telephone interview for follow-up and when requested
by operator
Field interview as needed or requested by operator
Interview mode used by state offices when requested
Self-administered survey submitted via Internet
Self-administered survey submitted via e-mail
Self-administered survey submitted via FAX
As of 2010, interview mode is being tested
Another mode of data collection

Type of Respondent

Operator / Manager
Spouse
Accountant / Bookkeeper
Partner
Other

The operator or manager of the operation
The spouse of the operator or manager of the operation
The accountant or bookkeeper of the operation
The partner of the operation
Other person of the operation

Type of Response

Complete Interview

Operations that purchase one or more items of interest
and provide complete data for all items purchased
Operations who refuse to participate and do not provide
and data
Operations that are inaccessible during the time of the
survey and cannot provide any data
An operation is still in business, but due to arrangements made with the operator cannot report at time of
the survey. For example, an operation reported that
they can only report quarterly due to their record keeping system.
An operation is still in business, but for a particular
month reports no purchases of any commodities of interest.
An operation has gone out of business or the operation
no longer buys any commodities of interest

Refusal
Inaccessible
Office Hold

Known Zero

Enumerator Evaluation

Not Accepted
Minimal Accepted
Average
Very Good
Excellent

USDA, National Agricultural Statistics Service

Enumerator’s survey work not accepted by NASS staff
Enumerator’s survey work is minimally accepted
Enumerator’s survey work is average
Enumerator’s survey work is very good
Enumerator’s survey work is excellent

3T-8

Table 3.5. Types of Farm Machinery
Type

Sub-Category

Baler

Pick-up, auto tie, power take-off (PTO) 200 lb bale

Index Item
No

Round, 1200-1500 lb bale

Yes

Round, 1900 - 2200 lb bale
Combine

No

Self-propelled with grain head, large

Yes

Self-propelled with grain head, extra large

No

Cotton Picker

Self-propelled, 6 row

Yes

Chisel Plow

16-20 ft

Yes

Down to 1 ft

21-25 ft

No

26-40 ft

No

41-60 ft

No

Corn Head for
Combine

6 row

Yes

8 row

No

12 row

No

Row Crop, flexible 12 row

No

Row Crop, mounted, 8 row

No

Drawn, 15-17 ft

No

Drawn, 18-20 ft

Yes

Drawn, 21-25 ft

No

Drawn, 26-30 ft

No

Drawn, 31-35 ft

No

Farm Elevator

Port, auger, 8 in diameter, 60 ft

No

Farm Wagon

Box and gear gravity unload, 200-400 bushel capacity

Yes

Box and gear gravity unload, 450-650 bushel capacity

No

Cultivator
Disk Harrow Tandem

Farm Wagon
Running Gear

8-10 ton
12-15 ton

Feed Grinder

Feed grinder-mixer, trailer, PTO

Field Cultivator

17-19 ft

Forage Harvester

No
Yes
No

Flexible 20-25 ft

Yes

Flexible 26-30 ft

No

Self-propelled, shear bar, 4 to 6 row

No

Shear bar, with pick-up attachment
Shear bar, with row crop unit, 2 row
Front-End Loader

1800-2500 lb. capacity

Grain Drill

Plain, 15-17 openers
Press, 23-25 openers

3T-9

Yes

Yes
No
Yes
No
No

With fertilizers 20-24 openers

Yes

With fertilizers 25-29 openers

No

USDA, National Agricultural Statistics Service

Table 3.5. Types of Farm Machinery
Type
Grain Drill (cont.)

Hay rake

Hay tedder
MowerConditioner
Mower Mounted
or Drawn
Manure Spreader
2 Wheel

Planter

Rotary Cutter

Rotary Hoe
Sprayer, Field
Crop

Tractor

Windrower

Sub-Category
With fertilizers 30-35 openers

Index Item
No

Minimum / no till, With fertilizers, 15 ft

No

Minimum / no till, With fertilizers, 20 ft

No

Side delivery or wheel, 13-23 ft working width (WW)

No

Side delivery or wheel, 24-35 ft WW

No

Side delivery or wheel, 8-12 ft WW

No

15-18 ft WW

No

PTO, 14-16 ft sickle

No

PTO, 8-10 ft sickle

No

13-14 ft sickle

No

7-8 ft sickle

No

PTO, 141-190 bushel capacity

Yes

PTO 225-310 bushel capacity

No

PTO 370-430 bushel capacity

No

PTO 560-660 bushel capacity

No

Conservation/no till, With fertilizers 12 row

Yes

With fertilizers, 4 row

No

With fertilizers, 8 row

No

With fertilizers, 12 row

No

With fertilizers, 24 row

No

7-8 ft

Yes

10-14 ft

No

15-20 ft

No

20-30 ft width

No

Mounted, boom type

No

Trailer type, including 1000-1600 spray tank

No

Trailer, boom type

No

2 wheel, 30-39 PTO Horsepower (HP)

No

2 wheel, 50-59 PTO HP

Yes

2 wheel, 70-89 PTO HP

No

2 wheel, 110-129 PTO HP

Yes

2 wheel, 140-159 PTO HP

Yes

2 wheel, 190-220 PTO HP

No

4 wheel, 200-280 PTO HP

Yes

4 wheel, 281-350 Engine HP

No

4 wheel, 351-500 Engine HP

No

Self propelled, 14-16 ft cut

USDA, National Agricultural Statistics Service

Yes

3T-10

Table 3.6. Types of Feed
Type

Sub-Category

Alfalfa

Meal

Beef Cattle Concentrate

Published
Unit
Cwt

Index
Item
No

Pellets

Cwt

No

32-36% Bagged

Ton

No

32-36% Bulk

Ton

No

32-36% Protein Total

Ton

Yes

Cwt

Yes

Corn Meal
Cottonseed Meal

41%

Cwt

Yes

Dairy Feed

14% Protein Bagged

Ton

No

14% Protein Bulk

Ton

No

14% Protein Total

Ton

No

16% Protein Bagged

Ton

No

16% Protein Bulk

Ton

No

16% Protein Total

Ton

Yes

18% Protein Bagged

Ton

No

18% Protein Bulk

Ton

No

18% Protein Total

Ton

No

20% Protein Bagged

Ton

No

20% Protein Bulk

Ton

No

20% Protein Total

Ton

No

32-38% Protein Bagged Concentrate

Ton

No

32-38% Protein Bulk Concentrate

Ton

No

32-38% Protein Concentrate Total

Ton

Yes

14-18% Protein Bagged

Ton

No

14-18% Protein Bulk

Ton

No

14-18% Protein Total

Ton

Yes

38-42% Protein Bagged Concentrate

Ton

No

38-42% Protein Bulk Concentrate

Ton

No

38-42% Protein Concentrate Total

Ton

Yes

Molasses

Liquid

Cwt

Yes

Poultry Feed

Chick Starter Bagged

Ton

No

Chick Starter Bulk

Ton

No

Chick Starter Total

Ton

Yes

Broiler Grower Bagged

Ton

No

Broiler Grower Bulk

Ton

No

Broiler Grower Total

Ton

Yes

Turkey Grower Bagged

Ton

No

Turkey Grower Bulk

Ton

No

Turkey Grower Total

Ton

Yes

Hog Feed

3T-11

USDA, National Agricultural Statistics Service

Table 3.6. Types of Feed
Type

Sub-Category

Published
Unit

Index
Item

Poultry Feed (cont.)

Stock Salt

Soybean Meal
Trace Mineral Blocks

Laying Feed Bagged

Ton

No

Laying Feed Bulk

Ton

No

Laying Feed Total

Ton

Yes

Plain or Iodized, Bagged

50 Lb

No

Plain or Iodized, Block

50 Lb

No

Plain or Iodized Total

50 Lb

Yes

44%

Cwt

Yes

Over 44%

Cwt

No

94.5-97.5% Salt

50 Lb

No

Cwt

Yes

Wheat Bran

USDA, National Agricultural Statistics Service

3T-12

Table 3.7. Fertilizers, Fungicides, Herbicides, and Other Chemicals
Type

Sub-Category

Published
Unit

Index
Item

0-18-36

Ton

No

0-26-26

Ton

No

3-10-30

Ton

No

4-0-8

Ton

No

5-10-30

Ton

No

5-20-20

Ton

No

6-6-18

Ton

No

6-15-40

Ton

No

6-24-24

Ton

No

7-1-1

Ton

No

9-23-30

Ton

Yes

10-10-10

Ton

Yes

10-20-20

Ton

Yes

10-34-0

Ton

Yes

11-37-0

Ton

No

11-52-0

Ton

Yes

11-55-0

Ton

No

13-13-13

Ton

Yes

14-0-44

Ton

No

14-7-14

Ton

No

15-60-0

Ton

No

16-4-8

Ton

No

16-6-12

Ton

No

16-20-0

Ton

Yes

17-17-17

Ton

Yes

18-9-9

Ton

No

18-15-22

Ton

No

18-46-0 (Diammonium Phosphate)

Ton

Yes

19-19-19

Ton

Yes

20-5-10

Ton

No

20-10-0

Ton

No

20-10-10

Ton

No

21-7-14

Ton

No

21-8-17

Ton

No

24-8-0

Ton

No

25-5-0

Ton

No

25-5-10

Ton

No

28-0-5

Ton

No

Ton

No

Fertilizers

28-3-3
3T-13

USDA, National Agricultural Statistics Service

Table 3.7. Fertilizers, Fungicides, Herbicides, and Other Chemicals
Type

Sub-Category

Published
Unit

Index
Item

Ammonium Nitrate (Approximately 33.5% N)

Ton

No

Anhydrous Ammonia

Ton

Yes

Aqua Ammonia 22-25% N

Ton

No

Limestone, Spread

Ton

No

Muriate of Potash 60-62% K20

Ton

Yes

Nitrogen Solution, 28% N

Ton

No

Nitrogen Solution, 30%

Ton

No

Nitrogen Solution, 32% N

Ton

Yes

Sulphate of Ammonia 20.5-21.0% N

Ton

No

Triple Superphosphate- 44-46% P2O5

Ton

Yes

Urea - 44-46% N Package Size

Ton

Yes

Captan 50% WP

Pound

Yes

Captan 80% WP

Pound

No

Chlorothalonil 6 lbs / gallon

Gal

Yes

Copper Hydroxide 54%

Pound

No

Copper Hydroxide 77%

Pound

Yes

Fenarimol 1 lb / gallon

Gal

No

Ferbam 76%

Pound

No

Fosethyl-Al 80%

Pound

Yes

Iprodione 4 lbs / gallon

Gal

No

Mancozeb 75%

Pound

No

Maneb 4 lbs / gallon

Gal

No

Maneb 80%

Pound

Yes

Myclobutanil 40%

Pound

No

Oxytetracycline 17%

Pound

No

Sulfur 80%

Pound

No

Triadimefon 50%

Pound

No

Ziram 76%

Pound

No

2, 4-D 3.8 lbs / gallon

Gallon

Yes

Acetochlor 6.4 lbs / gallon

Gallon

No

Acetochlor 7 lbs / gallon

Gallon

No

Alachlor 4 lbs / gallon

Gallon

No

Atrazine 4 lbs / gallon

Gallon

Yes

Butylate 6.7 lbs / gallon

Gallon

Yes

Oz

No

Fertilizers (cont.)

Fungicides

Herbicides

Chlorimuron Ethyl 25%
USDA, National Agricultural Statistics Service

3T-14

Table 3.7. Fertilizers, Fungicides, Herbicides, and Other Chemicals
Type

Sub-Category

Published
Unit

Index
Item

Chlorsulfuron 75%

Oz

No

DCPA 75%

Pound

No

Dicamba 4 lbs / gallon

Gallon

No

Diuron 80%

Pound

No

EPTC 6.7 lbs / gallon

Gallon

No

EPTC 7 lbs / gallon

Gallon

No

Glyphosate 4 lbs / gallon Salt Equivalent

Gallon

Yes

Glyphosate 4.5 lbs / gallon Salt Equivalent

Gallon

No

Linuron 50%

Pound

No

MCPA 3.7 to 4.0 lbs / gallon

Gallon

No

Metribuzin 75%

Pound

No

Napropamide 50%

Pound

No

Paraquat 3 lbs / gallon

Gallon

No

Pendimethalin 3.3 to 3.8 lbs / gallon

Gallon

Yes

Simazine 4 lbs / gallon

Gallon

No

Sodium Bentazon 4 lbs / gallon

Gallon

No

Sethoxydim 1.5 lbs / gallon

Gallon

No

Terbacil 80%

Pound

No

Trifluralin 4 lbs / gallon

Gallon

Yes

Acephate 75%

Pound

No

Acephate 90%

Pound

No

Aldicarb 15%

Pound

No

Azinphos-Methyl 50%

Pound

No

BT

Pound

No

Carbaryl 4 lbs / gallon

Gallon

No

Carbaryl 80%

Pound

Ye s

Carbofuran 4 lbs / gallon

Gallon

No

Chlorpyrifos 4 lbs / gallon

Gallon

No

Cyfluthrin 2 lbs / gallon

Gallon

No

Cypermethrin, 2.5 lbs / gallon

Gallon

No

Diazinon 50%

Gallon

No

Dicofol 4 lbs / gallon

Gallon

Yes

Dicrotophos 8 lbs / gallon

Gallon

No

Dimethoate 2.67 lbs / gallon

Gallon

No

Disulfoton 8 lbs / gallon

Gallon

No

Endosulfon 3 lbs / gallon

Gallon

No

Gallon

No

Herbicides (cont.)

Insecticide

Esfenvalerate 0.66 lbs / gallon
3T-15

USDA, National Agricultural Statistics Service

Table 3.7. Fertilizers, Fungicides, Herbicides, and Other Chemicals
Type

Sub-Category

Published
Unit

Index
Item

Imidacloprid, 1.6 lbs / gallon

Gallon

No

Malathion 5 lbs / gallon

Gallon

No

Malathion 9.9 lbs / gallon

Gallon

No

Methidathion 25%

Pound

No

Methomyl 2.4 lbs / gallon

Gallon

No

Methyl Parathion 2 lbs / gallon

Gallon

Yes

MSMA, 6 lbs / gallon - MSMA 6 Plus, MSMA Plus H.C.

Gallon

No

Oil 7 lbs / gallon

Gallon

No

Oxamyl 2 lbs / gallon

Gallon

No

Oxydemetion-Methyl 2 lbs / gallon

Gallon

No

Permethrin 2.0 lbs / gallon

Gallon

No

Permethrin 3.2 lbs / gallon

Gallon

No

Phorate 20%

Pound

Yes

Phosmet 50%

Pound

No

Phosmet 70%

Pound

No

Propargite 32%

Pound

No

S-Metolachlor, 7.62 or 7.64 lbs / gallon

Gallon

No

Synthetic Pyrethroids (Ambush & Pounce)

Gallon

Yes

Terbufos 15%

Pound

Yes

Zeta- Cypermetyhrin 1.5 lbs / gallon

Gallon

No

Zeta-Cypermetyhrin 0.8 lbs / gallon

Gallon

No

Gibberellic Acid 4% L

Gallon

Yes

Methyl Bromide, 67%

Pound

No

NAD (Naphthaleneacetamide) 8.4WP

Pound

Yes

Insecticides (cont.)

Other Chemicals

Table 3.8. Units of Measure for Fertilizers and Agriculture Chemicals
Liquid
Liquid Ounce
Pint
Liter
Quart
Gallon

Dry
Gram
Dry Ounce
Pound
50 lb bag
100 lb bag
Hundredweight
Ton

USDA, National Agricultural Statistics Service

3T-16

Table 3.9. Fuels
Type

Sub-Category

Diesel
Gasoline,
Unleaded

Bulk Delivery

LP Gasoline

Bulk Delivery
Service Station
Bulk Delivery

Published
Unit
Gallon

Index
Item
Yes

Gallon

No

Gallon

Yes

Gallon

Yes

Published
Unit
Cwt
Cwt

Index
Item
Yes
No

Bushel
Pound
Pound

No
Yes
No

Cwt

No
No
No

Table 3.10. Retail Seed
Type

Sub-Category

Alfalfa

Alfalfa Certified Seed
Alfalfa Uncertified Seed
Barley Spring Seed
Bluegrass Seed Kentucky Proprietary
Bluegrass Seed Kentucky Public

Barley
Bluegrass
Clover

Clover Seed Red Seed
Clover Ladino Seed

Fescue

Fescue Seed Tall Seed

Pound
80,000
Kernels
80,000
Kernels
80,000
Kernels
Cwt

Flax

Flax Seed

Bushel

No

Grain

Grain Sorghum Hybrid Seed

Cwt

No

Lespedeza

Lespedeza Seed Korean

Cwt

No

Lespedeza Seed Kobe

Cwt

No

Oats Spring

Oats Spring Seed

Bushel

No

Orchard grass

Orchard Grass Seed

Cwt

No

Rye grass

Rye Grass Seed Annual

Cwt

Yes

Soybeans

Soybeans Biotech Seed

Bushel

No

Soybeans Non-Biotech Seed

Bushel

No

Soybeans All Seed

Bushel

Yes

Sudan grass

Sudan Grass Seed

Cwt

No

Timothy grass

Timothy Grass Seed

Cwt

No

Wheat

Wheat Winter Seed

Bushel

No

Wheat Spring Seed

Bushel

Yes

Corn Hybrid

Corn Hybrid (BIO) Seed
Corn Hybrid (NBT) Seed
Corn Hybrid All Seed

3T-17

No
Yes
Yes

USDA, National Agricultural Statistics Service

Table 3.11. States Within Farm Production Regions
Number of States
Region
Farm Production Region
Per Region
1 .........
2 .........
3 .........

5
5
3

KY, NC, TN, VA, WV
IL, IN, IA, MO, OH

4 .........

3

MI, MN, WI

5 .........

8

AZ, CO, ID, MT, NV, NM, UT, WY

6 .........

11

CT, DE, ME, MD, MA,
NH, NJ, NY, PA, RI, VT

7 .........

4

KS, NE, ND, SD

8 .........

3

CA, OR, WA

9 .........

4

AL, FL, GA, SC

10 .......

2

OK, TX

AR, LA, MS

Table 3.12. States Within Fertilizer Regions
Number of States
Region
Fertilizer Region
Per Region
5
1.........
AL, KY, LA, MS, TN

2.........

4

CO, MT, NM, WY

3.........

8

IL, IN, IA, MI, MN, MO, OH, WI

4.........

12

CT, DE, ME, MD, MA, NH,
NJ, NY, PA, RI, VT, WV

5.........

4

KS, NE, ND, SD

6.........

3

ID, OR, WA

7.........

3

8.........
9.........

5
4

AR, OK, TX
FL, GA, NC, SC, VA

USDA, National Agricultural Statistics Service

AZ, CA, NV, UT

3T-18

Table 3.13.

Relative Weights of Items for Indexes of Prices Paid by Farmers
Including Interest, Taxes, and Wage Rates (Base Price Period 1990-92)

___________________________________________________________________________________________________________________

RELATIVE
RELATIVE
COMPONENT / SUBCOMPONENT
WEIGHT
COMPONENT / SUBCOMPONENT
WEIGHT
______________________________________________________________________________________________________
Percent
Percent
CONSUMER PRICE INDEX (C.P.I.)
19.0
FERTILIZER
4.7
PRODUCTION
65.6
Mixed Fertilizer
2.0
FEED
11.1
09-23-30
0.05
Complete Feeds
4.9
10-10-10
0.08
Beef Cattle Feed, 32-36%
0.44
10-20-20
0.04
Dairy Feed, 16%
0.83
10-34-00
0.31
Dairy Feed, 32-38%
0.34
11-52-00
0.28
Hog Feed, 38-42%
0.24
13-13-13
0.06
Hog Feed, 14-18%
0.24
16-20-00
0.06
Broiler Grower
1.42
17-17-17
0.04
Chick Starter
0.34
18-46-00 (DAP)
1.05
Laying Feed
0.68
19-19-19
0.07
Turkey Grower
0.34
Nitrogen
2.0
Feed Grains
2.0
Nitrogen Solution, 32%
0.77
Barley
0.06
Urea, 45%
0.51
Corn, Shelled
1.64
Anhydrous Ammonia, 81-82%
0.70
Sorghum, Grain
0.26
Potash and Potassium
0.7
Oats
0.04
Superphosphate, 44-46% P205
0.26
Hay/Forages
1.2
Muriate of Potash, 60% K20
0.40
Hay Baled, Alfalfa
0.76
Hay Baled, Other
0.46
AGRICULTURAL CHEMICALS
3.4
Concentrates
1.8
Herbicides
2.1
Cottonseed Meal, 41%
0.16
2,4-D
0.56
Soybean Meal, 44%
1.62
Butylate (SUTAN)
0.32
Supplements
1.2
Cyanazine (BLADEX)
0.39
Bran
0.53
Trifluralin (TRELAN)
0.47
Corn Meal
0.29
Pendimenthalin (PROWL)
0.21
Molasses, Liquid
0.29
Glyhposate (ROUNDUP)
0.20
Stock Salt, Plain or Iodized
0.11
Insecticides
0.8
Carbaryl (SEVEN)
0.15
LIVESTOCK AND POULTRY
8.2
Phorate (THIMET)
0.10
Feeder Cattle
6.39
Terbufos (COUNTER)
0.15
Feeder Pigs
0.66
Synthetic Pyrethroid
0.15
Milk Cow Replacements
0.66
Methyl Parathion
0.16
Poultry
0.54
Fonofos (DYFONATE)
0.09
Broiler-Type Chicks
0.35
Fungicides / Other
0.3
Egg-Type Chicks
0.19
Captan
0.09
Maneb
0.04
SEED
2.7
Fosethyl-AL (ALIETTE)
0.01
Field Crops
2.5
Copper Hydroxide
0.06
Seed Corn, Hybrid
1.10
Chlorothalonil (BRAVO)
0.09
Rice
0.04
Gibberellic Acid
0.09
Wheat
0.41
Naphthalene Acetamide
0.09
Cottonseed
0.13
Peanuts
0.10
FUELS
3.0
Soybeans
0.49
Diesel Fuel, Bulk Delivery
1.60
Potatoes
0.17
LP Gas, Bulk Delivery
0.35
Grasses and Legumes
0.3
Gasoline, Unleaded, Service Station 1.05
Ryegrass, Annual
0.10
Tall Fescue
0.06
Bluegrass, Kentucky
0.02
Alfalfa, Certified
0.07

3T-19

USDA, National Agricultural Statistics Service

Table 3.13.

Relative Weights of Items for Indexes of Prices Paid by Farmers
Including Interest, Taxes, and Wage Rates (Base Price Period 1990-92 (Cont.))

________________________________________________________________________________________________________
RELATIVE
RELATIVE
COMPONENT / SUB-COMPONENT
WEIGHT
COMPONENT / SUB-COMPONENT
WEIGHT
________________________________________________________________________________________________________
Percent
Percent
FARM SUPPLIES AND REPAIRS
Supplies
Hand Tools
Power Hand Tools
Lubricants
Fruit and Vegetable Containers
Repairs
Farm Machinery Parts
Labor Repair Costs

5.4
1.8
1.11
0.13
0.21
0.36
3.6
1.80
1.80

AUTOS AND TRUCKS
Autos
Autos, New
Autos, Used
Trucks
Trucks, New
Trucks, Used

1.3
0.2
0.10
0.07
1.1
0.64
0.49

BUILDING MATERIALS
FARM SERVICES
Custom Rates
Harvesting
Corn
Hay
Small Grains
Soybeans

2.4
10.9
1.2
1.0
0.17
0.45
0.20
0.14

Planting
Corn
Small Grains
Soybeans
Legumes and Grasses

0.1
0.02
0.02
0.02
0.02

Tillage
Chisel Plow
Tandem Disking
Field Cultivation
Row Cultivation

0.1
0.02
0.02
0.02
0.02

FARM MACHINERY
4.6
Self-propelled
1.8
Combine, w/ Grain Head, Large
1.51
Cotton Picker, Spindle, 4 Row
0.31
Windrower, 14-16 Foot
0.03
Other Services
9.7
Tractors
1.0
Insurance
2.43
2 Wheel, 50-59 HP
0.08
Contract Labor
1.18
2 Wheel, 110-129 HP
0.18
Electricity
2.25
2 Wheel, 140-159 HP
0.62
Veterinary Services
1.37
4 Wheel, 200-280 HP
0.14
Office Supplies
1.55
Other Machinery
1.8
Business Computers
0.07
Forage Harvester, PTO,
Transportation
0.88
Shear Bar, w/Pickup
0.06
Rotary Cutter, 7-8 Foot
0.05
RENT
8.0
Corn Head for Combine, 6-Row
0.14
Cash
3.6
Baler, Rnd, Man., 1200-1500 lbs.
0.19
Cash
3.43
Feed Grinder-Mixer, Trailer, PTO
0.06
Private Per Head
0.12
Front-End Loader, 1800-2500 lbs.
0.09
Public AUM
0.05
Manure Spreader, 2 Wheel, PTO,
Share
4.4
141-190 Bushel
0.12
INTEREST
5.7
Wagon Running Gear, 8-10 Tons
0.12
Farm Real Estate (per acre)
3.08
Wagon, Gravity, 200-400 Bushels
0.05
Farm Non-Real Estate
2.62
Corn Planter, Conservation, 12-Row
0.29
TAXES
3.0
Grain Drill, w/Fert. Attch. 20-24 Tube
0.15
WAGE RATES
6.7
Disk Harrow, Tandem, Drawn
15-17 Foot
0.12
TOTAL
100.0
18-20 Foot
0.16
Field Cultivator, Flexible 20-25 Foot
0.15
_______________________________________________________________________________________________________

USDA, National Agricultural Statistics Service

3T-20

Table 3.14. Bureau of Labor Statistics Component Indexes Utilized in
NASS Index Construction
Group
NASS Description
BLS Description
Feed
Supplements
Wheat mill products, corn mill
products, and other grain mill
products except flour
Concentrates
Soybean cake, meal, and other
byproducts
Complete Feeds
Formula Feeds
Fertilizer
Mixed Fertilizers
Mixed Fertilizers
Nitrogen
Nitrogenates
Potash and Phosphate
Phosphates
Agricultural
Chemicals
Agricultural and commercial
Chemicals
pesticides and chemicals
(NonHousehold)
Farm Supplies
Hand Tools
Hand and Edge Tools
and Repairs
Power Equipment
Power-driven Hand Tools
Oils/Greases
Finished Lubricants
Fruit and Vegetable Con- Wood container and pallet mantainers
ufacturing
Repairs/Parts
Parts for farm machinery, for
sale separately
Labor/Service
Installation, maintenance, and
repair
Autos and
Trucks
New trucks
Trucks
Autos
New cars
Farm MachinOther Machinery
All other farm machinery and
ery
equipment, excluding parts,
including attachments
Tractors
Farm-type (power take-off hp)
wheel tractors (2/4 wheel
drive)(with or without attachments)
Self-propelled Machinery Harvesting machinery (except
hay and straw) and attachments
Building Mate- Building Materials
Material and components for
rials
construction
Farm Services
Other Services – ComElectronic computers
puters
Other Services – Office
Office supplies and accessories
Supplies
Electricity
Electricity per KWH
Transportation
General freight trucking, longdistance
Family Living
Family Living
Consumer Price Index - All Urban Consumers

3T-21

BLS Series ID
wpu02140908

wpu0292
wpu0293
wpu0651
wpu065201
wpu065202
wpu06530106

wpu1042
wpu1132
wpu0576
pcu32192-32192wpu111409
ciu2010000430000i
cuur0000ss45021
cuur0000ss45011
wpu111408

wpu111403

wpu111406

wpusop2200
wpu1151
wpu091506
apu000072610
pcu48412-48412cuur0000sa0

USDA, National Agricultural Statistics Service

Table 3.15.

Relative Weights of Component Prices Paid Indexes Comparison
by Type of Farm
1990-92 Relative Weights (Percent) 1/

Index
All
Farms

Crop
Farms

Livestock
Farms

Production
65.6
62.4
68.6
Feed
11.1
1.5
20.1
Livestock & Poultry
8.2
1.6
14.3
Seed
2.7
4.3
1.2
Fertilizer
4.7
6.8
2.7
Agricultural Chemicals
3.4
5.6
1.3
Fuels
3.0
3.6
2.4
Farm Supplies & Repairs
5.4
6.4
4.5
Autos & Trucks
1.3
1.3
1.4
Farm Machinery
4.6
5.0
4.1
Building Materials
2.4
2.0
2.8
Farm Services
10.9
12.3
9.7
Rent
8.0
12.0
4.3
Interest
5.7
6.0
5.4
Taxes
3.0
3.4
2.6
Wage Rates
6.7
9.2
4.4
Family Living
19.0
19.0
19.0
_____________________________________________________________________________________
1/
Simple averages of 1990-92 base price period for comparison purposes.

USDA, National Agricultural Statistics Service

3T-22

Table 3.16.

Prices Paid Component and
Subcomponent Production Indexes (1990-92=100) 1/

Production
Index/Subcomponent

1990-92=100
Relative Weight
Percent

Feed
11.1
Complete Feeds
4.9
Feed Grains
2.0
Hay/Forages
1.2
Concentrates
1.8
Supplements/Other
1.2
Livestock and Poultry
8.2
Feeder Cattle
6.39
Feeder Pigs
.66
Milk Cow Replacements
.66
Poultry
.54
Seed
2.7
Field Crops
2.5
Grasses & Legumes
.3
Fertilizer
4.7
Mixed Fertilizers
2.0
Nitrogen
2.0
Potash and Potassium
.7
Agricultural Chemical
3.4
Herbicides
2.1
Insecticides
.8
Fungicides/Other
.3
Fuels
3.0
Diesel
1.60
Gasoline
1.05
LP Gas
.35
Farm Supplies & Repairs
5.4
Supplies
1.8
Repairs
3.6
Autos & Trucks
1.3
Autos
.2
Trucks
1.1
Farm Machinery
4.6
Self-Propelled
1.8
Tractors
1.0
Other Machinery
1.8
Building Materials
2.4
Farm Services
10.9
Custom Rates
1.2
Other Services
9.7
Rent
8.0
Cash
3.6
Share
4.4
___________________________________________________________________________________________
1/ Simple average of 1990-92 for comparison purposes.

3T-23

USDA, National Agricultural Statistics Service

Table 3.17.

Revised and Prior Prices Paid Indexes
Relative Weights of Component Indexes

Commodity Groups

Production
Feed
Livestock & Poultry
Seed
Fertilizer
Agricultural Chemicals
Fuels
Farm Supplies & Repairs
Autos & Trucks
Farm Machinery
Building Materials
Farm Services
Rent
Interest
Taxes
Wage Rates
Family Living
Total Inputs

Prior Base
Period
(1971-73)
(%)

Revised Base
Period 1/
(1990-92)
(%)

5-Year Moving Average Weights: 2/
1990
1995
2000
2005
2010
(%)

57.6
11.8
11.7
1.8
4.2
1.7
3.5
2.2
2.5
7.2
3.6
7.4
0
4.0
2.8
5.2
30.4

65.6
11.1
8.2
2.7
4.7
3.4
3.0
5.4
1.3
4.6
2.4
10.9
8.0
5.7
3.0
6.7
19.0

65.0
11.9
8.0
2.6
5.3
2.7
4.0
4.8
1.3
3.9
2.4
13.9
4.2
7.3
2.0
6.7
18.9

66.3
11.5
8.4
2.7
4.7
3.4
2.9
5.4
1.4
4.5
2.4
11.1
7.8
5.5
3.0
6.8
18.4

67.3
11.7
6.8
2.9
4.9
3.9
2.6
5.6
1.6
4.0
2.8
12.4
8.1
4.9
3.1
7.0
17.7

66.4
10.7
7.7
3.5
4.3
3.6
2.7
5.2
1.8
4.0
3.6
12.4
6.9
4.5
2.9
7.6
18.6

70.2
11.9
8.6
3.9
5.2
3.2
3.9
4.6
1.5
4.5
4.5
12.1
6.3
3.6
3.0
7.5
15.7

100.0

100.0

100.0

100.0

100.0

100.0

100.0

--------------------------------------------------------------------------------------------------------------------------------------------------------1/ Weights represent simple 3-year averages for 1990-92 base price period for comparison purposes with 1971-73, prior base
price and weight period.
2/ Examples of 5-year moving weights for constructing 1990-92=100 index numbers. Weights used for 2010 based upon
2004-2008 production expenditures, weights for 2005 based upon 1999-03 production expenditures.

USDA, National Agricultural Statistics Service

3T-24

Glossary of Selected Terms
2, 4-D (3.8 pounds/gallon)
For postemergence use on grasses, wheat, barley, oats, sorghum, corn, sugarcane and non-crop
areas for control of weeds such as Canada thistle, dandelion, annual mustards, ragweed, and lambsquarters. Many broadleaf crops are extremely sensitive, such as cotton and grape vines. Leaves no residue carryover to the next year. Absorbed through leaves.
AAtrex
See Atrazine.
Acephate (Orthene)
A contact and systemic insecticide effective against alfalfa looper, aphids, armyworms, bagworms, bean leafbeetle, bean leafroller, blackgrass bugs, bollworm, budworm, cabbage looper, cankerworms, corn earworms,cranberry blossom worm, cutworms, diamond back moth, European corn borer,
fireworms, fleahoppers, grasshoppers, green cloverworm, gypsy moth, hornworm, imported cabbage
worm, imported fire ants, lace bugs, leafminers, leafhoppers, leafrollers, lygus, Mexican bean beetle,
Mormon crickets, oak moth, saltmarsh caterpillars, soybean loopers, spanworms, sparganothis, stinkbugs,
tent caterpillars, threecornered alfalfa hopper, thrips, tobacco hornworm, velvetbean caterpillar, webworms, and whiteflies. For use in bell and non-bell peppers, brussel sprouts, cauliflower, celery, cotton,
cranberries, dry beans, head lettuce, mint, peanuts, soybeans, and succulent beans. This chemical also
used for spot treatment control of cockroaches and for insect control in forests, tobacco, and on ornamentals.
Acetochlor (7 lbs/gallon)
Herbicide used as a pre-emergence application or pre-planting application with soil incorporation
to control annual grasses and certain broadleaf weeds. Acetochlor is used on a wide variety of crops including cotton, corn, peanuts, soybeans, sugarcane, vineyards, orchard crops and some vegetables.
Active Ingredients
The ingredients in fertilizer or a pesticide which will chemically react with the soil, plant, animal,
or pest give the desired effect.
Actual Nutrients
As related to fertilizer, primary plant nutrients expressed in terms of active ingredients or units of
nitrogen, phosphorus, potassium, and sulfur applied. A unit equals one pound.

3G-1

USDA, National Agricultural Statistics Service

Additive, Feed
Items added to a diet or ration mixture to increase efficiency or to give it more desirable characteristics.
Aerial Fertilization
The broadcast distribution of fertilizers on the soil surface from aircraft.
Aerial Seeding
Broadcast seeding from aircraft, especially used in wet areas, such as rice fields, and for some
small grain crops on upland fields when heavy rain prevents the use of conventional seeding methods.
Adjuvant
Chemical added to a pesticide to increase its effectiveness or safety.
Aflatoxin
A toxic chemical produced by a soil-borne mold that affects seeds, such as corn and peanuts,
when certain climatic conditions occur. Aflatoxin is sometimes found in moldy corn.

Aggregative index method
The method in which the sum of prices of all items in the current period multiplied by their quantity in the base period is divided by the sum of all item total values (prices multiplied by quantity) in the
base period.

Aggregator
An individual or firm who purchases a commodity from a producer and combines the commodity
with other similar purchases in order to make a bulk sale.
Agitation
The process of stirring or mixing in a sprayer.
Agribusiness
Producers and sellers of agricultural food, fiber, and services. Agribusinesses include manufacturers, processors, wholesalers, dealers, transporters, marketers, and retail outlets.

USDA, National Agricultural Statistics Service

3G-2

Agricultural Marketing Service (AMS)
A USDA agency that sets standards for grades of cotton, tobacco, meat, dairy products, eggs,
fruits, and vegetables; operates grading services; and administers Federal marketing orders.
Agricultural Policy
A broad term used to encompass those government programs most directly affecting the prices
and incomes received by producers.
Agricultural Statistics Board (ASB)
A selected panel from the National Agricultural Statistics Service (NASS) staff dedicated to
providing effective and efficient review of statistics covering all aspects of U.S. agriculture. The ASB acts
on behalf of the Secretary of Agriculture.
Alachlor (4 pounds/gallon)
Used as a preemergence or early postemergence for controlling annual grasses and certain broadleaf seeds in soybeans, corn, peanuts, dry beans, sunflowers, milo and potatoes. Leaves no residue carryover to the next year. Can be broadcast or banded.
Aldicarb (Temik 15%)
A systemic insecticide, acaricide, and nematicide for use only as soil application to control certain
insects, mites, and nematodes on citrus (grapefruit, lemon, lime, oranges only), cotton, dry beans, ornamentals, peanuts, sorghum, soybeans, sugar beets, sweet potatoes, pecans (Southeast only), sugarcane
(Louisiana only), and tobacco (North Carolina and Virginia only).
Aliette
See Fosetyl-AL.
ALS Herbicides
Herbicides that bind to the acetolactate synthase (ALS) enzyme in the plant.
ALS Resistance
Resistance is caused by a modified ALS enzyme that no longer allows herbicide binding at the
site of action. When a modified ALS enzyme has been identified, the enzyme is likely to be resistant to
other ALS inhibitor herbicides as well.

3G-3

USDA, National Agricultural Statistics Service

Alternate Middle Row Spraying
A variable spraying pattern that alternates the middle row to be sprayed. This procedure reduces
the amount of pesticides used per application by one half.
Ambush
See Permethrin.
Amino Acids
The biochemicals that serve as the building blocks of proteins; 20 different naturally occurring
amino acids are present in plants and animals. Essential amino acids are those which animals cannot produce and must rely upon their feed supply to provide.
Ammonium Nitrate
Common chemical fertilizer having the analysis of 33-0-0.
Ammonium Phosphate
Common chemical fertilizer having the analysis of 16-27-0.
Ammonium Sulfate
Common chemical fertilizer having the analysis of 20-0-0.
Anhydrous Ammonia
Common chemical fertilizer having the analysis of 82-0-0. It occurs in the form of a compressed
gas. Special storage, handling, and application equipment is required.
Antibiotic
A chemical compound generally produced by molds that has the ability to inhibit growth of certain bacteria.
Application Rate
The amount of pesticide applied to a site, usually expressed as a liquid or dry measure per unit area.

USDA, National Agricultural Statistics Service

3G-4

Aqua Ammonia
Common chemical fertilizer having the analysis of 20-0-0.
Area Sample
A sample of segments selected from an area sampling frame. The area sampling frame is representative of the state’s geography and land uses.
Area Sampling Frame
All land area in the State divided into sampling units called segments.
Asana XL
See Esfenvalerate.
Atrazine (4 pounds/gallon Liquid)
Used for season-long postemergent weed control in corn, sorghum and pasture. At highest rates it
is used for non-selective weed control in non-cropped areas. Residual weed control; absorbed through
leaves and roots; tank mixes with grass herbicides; no residue carryover to the next year.
The Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES)
ABARES is a research bureau within the Department of Agriculture, Fisheries and Forestry that
provide research and analysis about Australia's primary industries.
Available
A form of a nutrient which is capable of being used by the growing plant.
Axial Flow Combine
A combine using a rotating mechanism inside a stationary threshing cage to thresh the grain. The
increased threshing area compared to a conventional combine results in faster and cleaner harvesting.
Azinphos-methyl (Guthion 50%)
Registered to control many insect pests on a wide variety of fruit, vegetable, nut, melon, and field
crops as well as ornamentals, forest and shade trees.

3G-5

USDA, National Agricultural Statistics Service

Bagged
Refers to how feed is packaged, in a bag (paper, burlap, or cloth). Bag sizes are usually 25, 50,
80, and 100 pounds (cwt).
Bale Accumulator
A trailing attachment for conventional hay balers that collects and automatically unloads about
8-12 bales.
Bale Chopper
A tractor-powered implement that chops up bales of hay for use as a feed or as bedding for livestock.
Bale Ejector
An attachment for conventional hay balers that throws bales into a trailing wagon to eliminate
hand loading.
Bale Mover
A device for mechanically moving large bales of hay; attaches to a tractor 3-point hitch or frontend loader, mounted in a truck bed, or trailed behind a tractor or truck.
Baler
See Hay Baler.
Band Application
An application of herbicide or fertilizer made in a narrow band near plant rows, rather than to the
entire soil surface.
Banvel
See Dicamba.
Basagran
See Sodium Bentazon.

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Base period
The base period generally is understood to be the period with which other periods are compared
and whose value provide the weights for a price index. However, the concept of the “base period” is not a
precise one and may be used to mean the different things. Three types of base periods may be distinguished:
The price reference period, that is, the period whose prices appear in the denominators of the
price relatives used to calculate the index, or
The weight reference period, that is, the period, usually a year, but a month for price received index, whose values serve as weights for the index. However, when a hybrid expenditure weights
are used in which the quantities of one period are valued at the prices of some other period, there
is no unique weight reference period, or
The index reference period, that is, the period for which the index is set equal to 100.

Base Unit
The standard manufactured item specified. Excludes product upgrades or optional items that are
installed by the factory or dealer.
Bayleton
See Triadimafon.
Baythroid
See Cyfluthrin.
Beneficial Insects
Insects collected and introduced into locations because of their value in biologic control as prey
on harmful insects and parasites.
Bidrin
See Dicrotophos.
Biodegradable
A substance that decomposes by microorganisms usually present in the soil.

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Biological Control
Control of pests using natural means, e.g. control of aphids by ladybird beetles (ladybugs). The
alternative would be application of an agricultural chemical (insecticide).
Biological Pesticide
A naturally occurring substance that controls pests.
Biotechnology
Development of products by a biological process involving the transfer of genes which produce
desirable traits. Biotechnology may use microorganisms such as yeasts or bacteria or natural substances
such as enzymes to complete the gene transfer process.
Biotechnology Seed Varieties
Genetically modified seed varieties that have been developed to possess particular “input” or
“output” traits.
Block Salt
A cube of about 10 inches of compressed salt used for consumption by livestock.
Board Estimate
The official measure of the actual quantity or value of an item as derived from sample data or
administrative data and approved by the Agricultural Statistics Board.
Bran
The outer layers of a grain removed in milling. Bran can be used for livestock feed as well as human consumption.
Bravo
See Chlorothalonil.
Broadcast
To sow seeds or fertilizer in all directions by scattering.

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Broadcast Application
The uniform application of a pesticide or fertilizer to the entire field or area.
Broad-Spectrum Pesticide
A pesticide that is effective against a wide range of pest species.
Broiler
A young domestic breed chicken grown for meat purposes only.
Broiler Grower
A type of poultry feed which is fed to chickens that are being raised for meat.
Broiler Feed Ratio
Number of pounds of broiler ration equal in value to one pound of live broiler; that is, the price
received by producers for one pound of broiler divided by the price of a pound of broiler feed.
Bt
Active ingredient is Bacillus thuringiensis, a bacterium which acts as an biological insecticide for
most caterpillar larvae, including armyworms, cabbage loopers, imported cabbageworm, gypsy moth, and
spruce budworm. For use on alfalfa, cotton, forested areas, fruit trees, ornamentals, shade trees, soybeans,
tobacco, and vegetables. Applied pre- or post-harvest and to growing crops.
Bulk
Refers to feed sold in a loose form – not divided into packages or containers. Feed is often sold in
bulk quantities of a ton.
Bulk Fertilizer
Commercial fertilizer delivered to the purchaser in a non-packaged form to which a label cannot
be attached.

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Bureau of Labor Statistics (BLS)
The principal fact-finding agency for the Federal Government in the broad field of labor, economics, and statistics. The BLS is an independent national statistical agency that collects, processes, analyzes, and disseminates essential statistical data to the American public, the U.S. Congress, other Federal
agencies, State and local governments, business, and labor. The BLS also serves as a statistical resource
to the Department of Labor. The data produced includes the Consumer Price Index (CPI), the unemployment rate, and the Producer Price Index (PPI).
Bushel (Bu.)
A volume unit of measure, often used as a standard for selling and trading crop commodities. In
practice, commodities are traded on a weight basis whereby, a USDA standard weight and moisture content representing a bushel has been established for each commodity.
Butylate (Sutan 6.7 pounds/gallon)
Incorporated as preplant to control most grassy weeds, including nutgrass, in corn; breaks down
in soil relatively soon to be harmless to crops following corn. Should not be applied on milo or sorghum.
CAPI
Computer Assisted Personal Interviewing is when an interviewer records the answers from a respondent using a computer during a personal visit.
Captan (50% and 80% wettable powder)
For control of scab, black rot, botrytis, sooty blotch, fly speck and summer rots on apples; brown
rot and leaf spots on store fruits and almonds; dead arm, down mildew and black rot on grapes. Also for
control of a wide variety of fungal diseases on small fruits, berries, vegetables, and ornamental crops. It is
also used as a seed treatment. NASS collects prices for two different formulations of this product.
Carbamate
See Ferbam.
Carbaryl (Sevin 80%)
For the control of insect pests on more than 100 different crops including citrus, fruit, forage
crops, corn, forests, soybeans, peanuts, tobacco, cotton, rice, peanuts, sorghum, rangeland, other small
grains, lawns, nuts, ornamentals, shade trees, poultry, and pets.

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Carbofuran (Furadan 4 lbs/gallon)
For use on field corn to control corn rootworm and most soil and foliar pests; alfalfa for alfalfa
weevil, aphids and lygus bugs; tobacco for nematodes and soil and foliage feeding insects; peanuts for
nematodes and thrips; rice for rice water weevil; on sugarcane for nematodes, wireworms and sugarcane
borer; sorghum for greenbug; potatoes for Colorado potato beetle, leafhoppers and flea beetles. Also soybeans, sweet corn, cotton, grapes, small grains, sorghum, and a variety of other crops. In-furrow or banded application.
Carryover - [Pesticides]
Carryover is chemical pesticide residuals remaining in the soil a year or more after being applied.
Residual levels are influenced by chemical type, amount of rainfall, and soil type. The carryover from
some chemicals may affect the growth of certain crops planted in later years.
Cash Price
The price paid for the item of interest less any discounts, rebates, and sales tax. If a trade-in was
involved in the sale, add the value of trade-in to the reported discount price.
CATI
Computer Assisted Telephone Interviewing is when an interviewer records the answers from a respondent over the telephone using a computer.
Certified Applicator
A person certified to use or direct the use of restricted use pesticides.
Certified Seed
Seed that meets rigid standards of purity and germination, which is designated by an authorized
agency (for example, State Department of Agriculture).

Chain Index
An index number derived by relating the value at any given period to the value in the previous period rather than to a fixed base.

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Chain Weighted Index
The chain weighted CPI incorporates changes in both the quantities and prices of products. For
example, let's examine clothing purchases between two years. Last year you bought a sweater for $40 and
two t-shirts at $35 each. This year, two sweaters were purchased at $35 each and one t-shirt for $45.
Standard CPI calculations would produce an inflation level of 13.64%
((1 x 35 + 2 x 45)/ (1 x 40 + 2 x 35)) =1.1364.
The chain weighted approach estimates inflation to be 4.55%
((2 x 35 + 1 x 45)/ (1 x 40 + 2 x 35)) =1.0455.
Using the chain weighted approach reveals the impact of a customer purchasing more sweaters than
t-shirts. The chain weighted CPI incorporates the average changes in the quantity of goods purchased,
along with standard pricing effects. This allows the chain weighted CPI to reflect the expenditures change
of customers shifting the weight of their purchases from one area of spending to another.
Check Data
Information derived from inspections, marketings, acreages contracted or certified, assessments,
ginnings, and other sources that have some direct relation to a commodity and can be used, with varying
degrees of confidence, to supplement survey data in the preparation or revision of estimates.
Chemical Fallow
The application of herbicides to keep cultivated land free of vegetative growth by destroying
weeds or to conserve moisture for the next crop.
Chemigation
The application of an agricultural chemical by injecting it into irrigation water.
Chick Starter
A balanced feed for the quick growth of baby chicks, consisting of ground grains, leaf meal, soybean meal, dried milk, limestone, iodized salt, vitamins, antibiotics, and other items.
Chisel Plow
A primary tillage machine, either integral or trailing, that consists of three or more ranks or bars
upon which either rigid or spring trip standards are attached. The shanks are usually spaced 12 inches
apart overall. A variety of ground engaging tools may be used, from narrow points or shovels to 18 inch
wide sweeps. Chisel plows may be used to a maximum depth of 18 inches.

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Chlorimuron-Ethyl (Classic 25%)
Formulation to be mixed with water and sprayed for selective postemergence weed control in
soybeans. Will control many broadleaf weeds and yellow nutsedge.
Chlorothalonil (6 pounds/gallon)
A broad spectrum fungicide. Registered for use on stone fruits, soybeans, dry edible beans, snap
beans, cole crops, carrot, celery, sweet corn, cucumber, onion, cantaloupe, muskmelon, honeydew, watermelon, squash, pumpkin, peanut, potato, tomato, passion fruit, papaya, conifers, and ornamentals; grass
grown for seed; also used in paints and as a wood preservative.
Chlorpyrifos (4 pounds/gallon)
Used as a soil insecticide for control of corn rootworms and cutworms, as a dormant application
for control of peach tree borer, and as a seed treatment for control of seed corn maggot. Also used on cotton, peanuts, alfalfa, soybeans and sorghum. In-furrow or banded application.
Chlorsulfuron (Glean 75%)
Intended for use on land having a soil pH of 7.5 or lower and dedicated primarily to the production of wheat and barley. Controls most broadleaf and some grass weeds at 1/6 and 1/2 ounce product/acre.
Classic
See Chlorimuron.
Combine
Self-propelled or PTO implement for harvesting standing crops or to gather crops from windrows
or swaths. Combines separate the crop from the straw, stalks, cobs and husks, cleans and elevates it into a
holding tank for immediate or eventual delivery into a truck, wagon or grain cart. Self-propelled units
may have 2 wheels, 4 wheels or track drives and can be set up for rice, barley, peanuts, beans, small
grains, and soybeans. They may have rigid or flexible cutter bars, bat or pick-up reels or windrow
pickups, and may be fitted as hillside, sidehill or level land machines. Special barley and other row crop
heads are available.
Commercial Applicator
A person who uses or directs the use of any pesticide, either directly or through an employee, for
any purpose or on any property, other than as a private applicator. The term does not apply to a person
who applies a pesticide, other than a restricted use pesticide, solely for household purposes in and around
the person's residence.

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Commodity
An agricultural or agricultural by-product available for sale.
Complete Feed
A feed ration which usually contains additives and is nutritionally balanced for a particular type
of livestock.
Concentrate
A highly digestible feed component that is high in energy or protein and low in fiber content.
Concentrate can be fed straight or mixed with grain. This term is often used interchangeably with supplement.
Concentration
The amount of active ingredient in a given volume or weight.
Conditioners
Inert anti-caking materials such as peanut hull meal, rice hull meal, vermiculite, and other organic
waste materials used as separating agents in fertilizers to keep the particles from clumping together.
Confidentiality
The assurance from NASS to survey respondents, backed by federal law, that individual information collected on authorized USDA surveys will not be released to any person, organization or institution, including court subpoenas. See the “NASDA Employee Handbook” for regulations.
Consumer Price Index
An index to measure the average change in prices over time for a fixed set of goods and services.
Starting in 1998, prices are collected in 87 primary sampling units.
Contact Herbicide
See “Herbicide, Contact.”
Control Data
Information on file about individual farm or ranch operations which defines the type and size of
the operation, i.e. acres of cropland, grain storage capacity, livestock numbers by species, etc.

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Conventional Moldboard
A plow equipped with a moldboard which receives the furrow slice and turns it partially or completely over.
Conventional Sprinkler
A less efficient sprinkler irrigation system such as hand move, permanent or high pressure center
pivot sprinkler systems.
Conventional Tillage
A tillage system where the entire surface layer of the soil is mixed or inverted by plowing, tillage,
or discing.
Copper Hydroxide 77% and 54%
A fungicide for alfalfa, almonds, apricots, avocados, bananas, beans, blackberries, broccoli, celery, cacao, brussel sprouts, cabbage and cauliflower, cantaloupes, honeydews, muskmelons, carrots, cherry, citrus, coffee, cranberry, cucumbers, currants, gooseberry, grapes, filberts, peaches, nectarines, peanuts, pears, peas, peppers, philodendron, potatoes, pumpkin, squash, strawberries, apples, eggplant, hops,
sycamore, lettuce, onion, sugar beets, tomatoes, walnut, watermelon, wheat, and barley. NASS collect
prices for two different formulations of this product.
Corn-Hog Ratio
Number of bushels of corn equal in value to 100 pounds of live hogs; the price per hundredweight
received by producers for hogs divided by the bushel price of corn.
Corn Planter
Any of several different mechanical devices used to plant corn, which differ according to the
manner in which the corn seed is dropped.
Cotton Picker
A machine used for mechanically harvesting cotton, which removes only the mature seed cotton.
The basic principle on which it operates is a revolving spindle which penetrates the cotton plant, winds
the seed cotton from the open boll, and carries it to a dropping zone in the machine. The cotton crop can
be picked more than once using this technique.

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Cottonseed
Seed of cotton with the lint removed. Cottonseed oil is extracted from the seed by a crushing process. The residue (cottonseed cake or meal) is used as livestock feed.
Cottonseed Cake
The solid residue left after the extraction of oil from cotton seeds. It should contain more than
36% protein and is sold according to its protein content.
Cottonseed Hulls
The outer covering of the cottonseed. It is residue after the extraction of the oil and used extensively as a livestock feed.
Cottonseed Meal
The residue of cottonseed kernels from which oil has been pressed. It is used as livestock feed or
fertilizer.
Cotton Stripper
The leaves of the plant are removed with a chemical spray about two weeks before picking.
Strippers work faster than pickers and strip the plant of all its growth in a single operation, including not
only the open bolls but also the closed bolls and the needless foliage and stem.
Counter
See Terbufos.
Crawler
A self-propelled power unit used in agriculture and construction which has steel or rubber tracks
for traction, instead of 2 or 4-wheel drive with tires. Levers are generally used for steering control instead
of a steering wheel. Advantages are zero slippage in traction, minimum soil compaction, low center of
gravity and cost differential of tracks vs. tires. Disadvantage is lack of maneuverability and speed.
Crop Dusting
Spreading insecticides, fungicides, herbicides in the form of powder or spray from an airplane or
helicopter.

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Crumbles
Pelleted feed that has been broken into smaller granular pieces.
Cultivators
Field
An implement similar to the chisel plow except of lighter construction and with shanks or stines closer together (about 6 inches overall). The shanks are usually of a coil spring, and s-tines are
designed to vibrate. Both are designed to break up the soil without getting caught by obstructions.
The ground contact tool may be points, shovels or sweeps. Size may range up as high as 70-80 feet in
width. Used primarily as a secondary tillage machine.
Row
An implement with shanks arranged in such a manner that rows of the crop can pass through
without damage while weeds are removed. The shanks or standards may be fitted with shovels, disks
or spider-wheels set at an angle to the direction of travel. Size can vary from 1-24 rows. Most are
mounted on tractor either front or rear tool-bar.
CWT (Hundredweight)
A marketing term referring to 100 pounds of a commodity.
Cyfluthrin (Baythroid 2 pounds/gallon)
Foliar insecticide for control of chewing insects on a variety of crops such as corn, cotton, deciduous fruit, peanuts, potatoes, vegetables, and others.
Dacthal
See DCPA.
Data Collection
The process of completing interviews or field counts, or otherwise accounting for (refusal, inaccessible, out-of-business) all selected sample units in a survey.
Date, Due - [Enumerators]
The date assigned materials must be received in the State office.

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Date, Reference
The date used as a reference point for asking respondents survey questions. The reference date for
the Prices Paid Surveys is March 15.
Date, Release
The date survey results are published and released. See the NASS Webpage for a calendar of report release dates.
DCPA (Dacthal 75%)
A selective herbicide for preemergence application and control of smooth/hairy crabgrass, fall
panicum, witchgrass, green/yellow foxtails, other annual grasses. Broadleaf weeds also controlled are
carpetweed, dodder, pursland, nodding spurge, prostrate spurge, spotted spurge, and chickweed. It is tolerated by many crop plants. For turf, ornamentals, brasica (cole) crops, collards, cotton, cucumbers, eggplant, field beans, garlic, horseradish, kale, mustard greens, onions, peppers, potatoes, radish, seeded melons, strawberries, squash, sweet potatoes, tomatoes, and turnips. Postemergence application for Veronica
filiformis.
Dealer
A person or firm buying commodities for speculative purposes. The commodities are for immediate resale and usually held for only a short time. Dealer takes title to the commodity.
Defoliant
A chemical agent that causes leaves to drop from a plant. Defoliants are often used with some
crops to facilitate harvest.
Degradable
A substance that will gradually break down in the environment.
Desiccant
A preparation intended for artificially speeding the drying (loss of moisture) of crop plant parts
such as cotton leaves and potato vines.
Devrinol
See Napropamide.

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Diammonium Phosphate
Common chemical fertilizer having the analysis of 18-46-0.
Diazinon 50%
An insecticide and nematicide for soil insects and pests of fruits, vegetables, tobacco, forage, field
crops, pasture, grasslands, and ornamentals. Also for control of cockroaches and other household insects,
nematodes in turf, and seed treatment and fly control.
Dicamba (Banvel 4 pounds/gallon)
For control of both annual and perennial broadleaf weeds in field and silage corn, grain sorghum,
small grains (not underseeded to legumes), sugarcane, asparagus, grass seed crops, turf, pasture, rangeland and noncropland areas such as fence rows, roadways and wasteland. For control of brush and vines
in noncropland, pasture, and rangeland areas. Also registered for spot treatment of perennial broadleaf
weeds in cropland to be rotated to wheat. For control of annual and perennial broadleaf weeds after harvest of one crop but before planting the next crop (between cropping application).
Dicofol (4lbs/gallon)
An acaricide for use on many fruit, vegetable, ornamental, and field crops to control various mite
species.
Dicrotophos (Bidrin 8 pounds/gallon)
Used to control certain pests of cotton and coffee borer control. Available for control of elm bark
beetles (tree injection system). Enters plant tissue rapidly, thus enabling many beneficial insects to survive.
Dilute
To make less concentrated by adding another liquid or solid.
Dimethoate (2.67 lbs/gallon)
A systemic insecticide-acaricide for a wide range of insects. It is used to control aphids,
planthoppers, thrips, white flies, mites on ornamentals plants, alfalfa, apples, corn cotton, grapefruit,
grapes, lemons, melons, oranges, pears, pecans, safflower, sorghum, soybeans, tangerines, tobacco, tomatoes, wheat, watermelons, and other vegetables. Residual wall spray in farm buildings for houseflies.

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Discount
[Buyer] A deduction from an original price or debt, allowed for paying promptly or in cash.
[Seller] A deduction from the market price for poor quality or less than market standard commodities.
Disk
A farm implement composed of circular plates arranged at an angle with the soil used to prepare
soil for seeding.
Disk Harrow
Also known as Tandem-Disk. Two gangs of disc blades are hitched in tandem; the front set
throws the soil outward, and the rear set throws it inward. Width of cut may vary from 5-35 feet or more.
Blade diameter size may vary from 16-26 inches with different spacing between blades (7, 9, 11 inches
most common).
Dispersing Agent
An additive that reduces the chemical attraction between particles to prevent materials from
clumping.
Disulfoton (Di-syston) 8 pounds/gallon
A systemic insecticide for side dressing, broadcast, in the seed furrow or foliar spray to control
many insects and mite species. Seed treatment to control sucking insects.
Di-Syston
See Disulfoton.
Dithane
See Mancozeb.
Diurex
See Diuron.

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Diuron (80%)
Effective against emerging broadleaf and grass weeds as well as mosses, suitable for both selective and total weed control. For use on alfalfa, asparagus, cotton, citrus, fruit orchards, sugarcane, wheat,
and vineyards.
Dolomitic Lime
See “Lime, Dolomitic.”
Drench
[Crops] Saturating the soil with a pesticide.
[Fruit] Application of a chemical by wetting the fruit usually before entering the packinghouse;
usually applied with a coarse spray of water with or without an added chemical.
[Livestock] Oral administration of a pesticide to an animal.
Drift
Pesticides which have been carried by the wind from the intended area when spraying.
Drilled
Seeds which have been planted below the soil surface in rows by means of a drill or seeder.
Drill, Grain
Equipment used for seeding with or without fertilizer attachment. Has a seed box which meters
seed through tubes to single or double disk openers. There are generally three types of grain drills: plain,
press, and no-till.
Drill, No-till, Minimum-till
An implement with a disk to cut through the untilled soil and create a seed trench. The seed is
placed in the furrow and covered by a harrow or closing wheel.
Drill, Plain
Seeder with seed box, metered seed fed through tubes to single or double disc openers; spaced at
7, 9, 10 inch widths; without fertilizer attachment.

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Drill, Press
A drill with either discs or lister bottoms plus press wheels to firm soil around seed.
Dry Distillers Grain
A by-product of processing bio-fuels from grain. It may be sold for a variety of purposes, often as
fodder for livestock.
Dry Flowable (Dry Concentrate)
A dry, relatively free-flowing powder containing the maximum possible amount of active ingredient. A wetting agent may be included so that the mixture is ready to be dispersed in water for spray application, in which case it is termed a dry wettable. Without a wetting agent, but suitable for further dilution to form a dust, it is called a dust base.
Due Date
[Enumerators] The date assigned materials must be received in the State office.
[State office] The date assigned materials must be received in Headquarters.
Economic Research Service (ERS)
A USDA agency that is an important user of NASS data. ERS studies various topics related to
agriculture and issues research publications and commodity outlook and situation reports.
Editing
Reviewing completed questionnaires for reasonableness and validity. Responses which appear
unusual or unreasonable should be verified with the respondent and updated if incorrectly reported. Unusual but correct responses should be flagged and explained with notes indicating they were verified.
Egg-Feed Ratio
Number of pounds of poultry ration equal in value to one dozen eggs; that is, the price of one
dozen eggs divided by the price of a pound of poultry feed.
EIA
See “U.S. Energy Information Administration (EIA)”.

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Elevator
A device to move grain, hay bales, feed or other commodities by belt, chain, bucket, or auger in a
vertical or horizontal direction or other variation.
Emulsifiable Concentrate
Liquid formulation produced by dissolving the toxicant and an emulsifying agent in an organic
solvent. Strength usually stated in pounds of toxicant per gallon of concentrate.
Endosulfan (Thiodan 3 pounds/gallon)
An insecticide and acaricide to control aphids, thrips, foliar feeding larvae, tarsonemid mites,
cutworms, borers, cutworms, bugs, whiteflies, and leafhoppers on citrus, deciduous, small fruits, forage
crops, forest, coffee, tea, fiber crops, grains (cereals and rice), nuts, oil crops, ornamentals, tobacco, and
vegetables. Also controls tsetse fly.
Enhanced Seed
Term for seed products that have been improved by traditional breeding or genetic engineering to
improve yields, resist pests and diseases, or tolerate herbicides.
Enumerator
A person trained to conduct interviews or make field counts and record the information gathered
in the interviews or counts.
Eptam
See EPTC.
EPTC (Eptam/Eradicane 7.0 pounds/gallon)
Particularly effective for control of annual grassy weeds and nutgrass and perennial weeds such
as johnsongrass seedlings and quackgrass. Effective on a number of broadleaf weed species. For use in
potatoes, beans, forage, legumes, and in some areas sweet potatoes and corn.
Eradicane
See EPTC.

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Esfenvalerate (Asana XL .0.66 pounds/gallon)
A broad spectrum insecticide for almond, apple, artichoke, bean (dry and snap), broccoli, cabbage, carrot, cauliflower, collard, corn (field, sweet, seed, and popcorn), cotton, cucumber, dry pea, eggplant, filbert, green pea, lentil, melon, peanut, pear, pecan, pepper, potato, pumpkin, radish, soybean,
squash (summer and winter), sugarcane, sunflower, stone fruit, tomato and walnut crops.
Estimate
An approximate measure of the value of an item, usually derived from sample data or administrative data.
Ethanol
The alcohol product of grain fermentation used in alcoholic beverages and for industrial purposes,
including gasoline.
Eurostat
Eurostat is the statistical office of the European Union situated in Luxembourg. Its task is to provide the European Union with statistics at European level that enable comparisons between countries and
regions.

Family Living Index
An index to measure price changes for food, clothing, health and medical care, entertainment, and
household furnishings, relative to a base period.
Farm Wagon
A four-wheel, tractor-drawn vehicle used to transport produce, fertilizer, seeds, hay, and other
materials.
Farmer
See "Operator."
Feed
The diet provided to livestock or poultry.
Feed Additive
See “Additive, Feed.”

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Feed Concentrate
See “Concentrate”.
Feed Grain
Any of several grains most commonly used for livestock or poultry feed, such as corn, sorghum,
oats and barley.
Feed Grinder/ Hammer Mill
A feed grinding device or mill in which hammer-like projections are mounted on the surface of a
cylinder which revolves at a high speed within a heavy perforated metal enclosure and shatters the grain
material by beating it to pieces. When the grain pieces become small enough from the hammering action
to pass through a perforated screen, they are used as feed. The fineness of the feed is controlled by the
size of the perforations in the screen.
Feed Mixer
A device for mixing various feeds consisting of an inverted cone of sheet metal within which are
paddles or augers.
Feed Supplement
See “Supplement”.
Feeder Cattle
Young livestock on grass and/or a warm-up or maintenance ration until being put on feed for
slaughter market or being selected as replacement stock.
Feeder Pig
A young pig, usually recently weaned and at least 8 weeks old or 40-100 pounds, to be fed for
slaughter.
Feedlot
The confined area where animals are fed.

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Fenarimol (1 pound/gallon)
A foliar fungicide for use on turfgrasses, ornamentals, and various tree crops. This product is used
to control scab, powdery mildew, and rusts of apple; scab, powdery mildew of pecan; powdery mildew of
grapes, roses, ornamentals.
Ferbam (76%)
A fungicide for control of apple scab, cedar apple rust, peachleaf curl, tobacco blue mold, and
cranberry diseases. A protective fungicide to other crops.
Fertigation
Application of fertilizer to a crop through irrigation.
Fertilization
As used in this chapter, the practice of adding nutrients to soil or plants for use by plants.
Fertilizer
Any material put on or in the soil or on plant leaves to improve the quality or quantity of plant
growth. See “Nitrogen,” “Phosphate,” “Potash,” and “Sulfur.”
Fertilizer Analysis
The percentage of nitrogen, phosphate, potash, and sulfur (N, P2O5, K2O,S), specified in that order, contained in a blend of fertilizer. Fertilizer may be blended with various micronutrients or trace elements.
Finish
In reference to livestock, fatness in animals; highly finished means very fat. This term is also used
to describe the feeding of stock in preparation for market. For example, stock may be “finished” by feeding them a diet based on grain, or may be “finished” based on a pasture-based system.
Flowable
A liquid formulation of a pesticide consisting of a finely ground active ingredient suspended in a
liquid. Mixed with water for application.

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FOB (Free on Board)
A transportation term that indicates that the price for goods includes delivery at the seller’s expense to a specified point (and no further). The FOB term is used with an identified physical location to
determine payment of freight charges and the point at which title for the shipment passes from seller to
buyer.
FOB Destination
A business agreement where the seller retains title of the goods until they are delivered. The seller
selects the carrier and is responsible for the risk of transportation.
FOB Origin
A business agreement where the seller is responsible for assembling and loading the purchased
goods for transport on a carrier of the buyer’s choice. The buyer takes title to the goods when they are
loaded for transport and pays for shipment.
Foliar Application
Application of a material to the aerial portions of either a crop or weed.
Forage Harvester (Field Forage Harvester, Field Chopper, Field Ensilage Harvester)
A harvesting machine, tractor drawn or self-propelled, which is used for field chopping of corn,
legumes, and grasses into suitable lengths for either silo or mow storage. Forage Harvesters can have either a pick-up or row-crop head.
Fosethyl-AL (80%)
A systemic fungicide used to prevent and cure activity against many Oomycetes on avocado, cacao, hops, citrus, ornamentals, pineapple, rubber, strawberries, fruit crops, tobacco, vegetable crops, and
vines.
Foundation Seed
Seed stock handled to maintain specific genetic identity and purity as closely as possible under
supervised or approved methods of production.

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Front-End Loader
A mechanical implement mounted on a tractor for front-end operation to load manure, hay, or
other loose type materials. It has three basic parts a) the loader bucket, with flat bottom and vertical sides
or fork with 7-12 tines; b) the support structure (framework) for mounting and maneuvering; and c) hydraulic fluid cylinders, valves, and hoses.
Fumigant
A substance or mixture of substances which produce gas, vapor, fume or smoke intended to destroy insects, bacteria or rodents.
Fumigation
The use of poisonous gases for destruction of pests, mainly rodents and insects. Fumigation can
destroy microorganisms, but may be less effective since not all gases which kill animals, such as rats, are
toxic to bacteria or other microorganisms.
Fungi
A form of plant life which may be parasitic on crops and other plants, resulting in reduced production and quality of the crop.
Fungicide
A chemical used to kill fungi. The fungi are parasitic to the host plant and cause an economic loss
(reduced production and/or lower quality).
Furadan
See Carbofuran.
Furrow Application
Placement of a material in a narrow line in the soil directly over the seed at planting time.
Gene stacking
Combining multiple desirable traits such as resistance to herbicides, diseases, insects, etc. into a
single hybrid variety.

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Genetic Engineering
A biotechnology method which uses enzymes to move DNA from one organism to another, bypassing the sexual reproduction process. The organisms may or may not be related to each other.
Genetically Modified Organism (GMO)
An organism whose genetic material has been altered using genetic engineering techniques. These techniques use DNA molecules from different sources, which are combined into one molecule to create
a new set of genes. This DNA is then transferred into an organism, giving it modified genes.
Germination
The sequence of events occurring in a viable seed, starting with the absorption of water, that leads
to the growth and development of a young plant.
Gibberellic Acid (Pro-Gibb 1.8-2.0% )
A hormone found in plants which is available commercially to apply to crops to act as a plant
growth regulator. For example, gibberellic acid may be applied to grapes to elongate cluster, increase berry size, and reduce bunch rot. It may be applied to lemons to maintain green color, delay yellowing, and
reduce the percentage of small tree-ripe fruit. It reduces rind staining, water spot and tacky rind in Navel
oranges. This chemical can help produce taller, thicker stalks of celery harvested in cool seasons; prevent
head formation, induce production of seed stalk in lettuce; increase fruit set; accelerate maturity of artichokes to shift harvest to an earlier date; stimulate uniform sprouting of seed potatoes that do not have a
full rest period; delay harvesting, produce a brighter colored, firmer fruit, and to increase size of sweet
cherries; reduce internal browning and watery pits of the Italian prune and increase yields; increase yield
of marketable forced rhubarb; and to break dormancy on plants receiving insufficient chilling.
Gilt
Female pig that has never farrowed.
Glyphosate (4 - 5.5 lbs/gallon)
Controls many annual and perennial grasses and broadleaf weeds plus many tree and woody
brush species in cropland and noncrop sites. A foliar-applied, translocated herbicide, it may be applied in
spring, summer, or fall to undesirable vegetation by boom equipment, hand-held and high volume equipment and selective equipment throughout the U.S. and, in some states, by aerial application equipment.
May be tank mixed with Lasso, Atrazine, and Princep for use in minimum tillage systems for corn. In
combination with Lasso, Lorox, Lezone, and Sencor for use in minimum tillage systems for soybeans.
NASS collects prices for two different formulations of this product.

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GR
Corn hybrids that are resistant to glufosinate-ammonium (Liberty).
Grain Storage Capacity
Storage capacity of all structures normally used (bins, cribs, sheds, etc.) to store whole grains or
oilseeds usually reported in bushels. Excluded are ground storage and structures not normally used to
store whole grains or oilseeds.
Granular
A dry formulation of pesticide which is mixed with or coated onto an inert carrier material and
other components in small particles. The carrier materials may be clays, sand, carbon, or ground corn
cobs.
Grazing Fee
The charge on an AUM, cow-calf, or fee per head basis, levied on a farmer or rancher to graze
livestock on land in accordance with the terms of a grazing allotment or association.
Grazing Period
A specified time when a farmer or rancher may graze on specific grazing land.
Grazing Permit
A document authorizing the use of public or other lands for grazing purposes under specified
conditions which is issued to the livestock operator.
Grazing Land, Public or Industrial
Lands administered through permits or licenses allowing one or more ranchers to graze a specified number of animal units in a specified area during a certain period of time, from seasonal to yearround. Payment for use of this land is on an AUM or fee per head basis. Land may be controlled by Federal, State, or local agencies or owned by corporations, such as paper mills, railroads, or energy companies.
Grazing Land Association, Public or Industrial (PIGA)
Associations established to administer and enforce the rules and regulations for a specific area of
Public or Industrial Grazing Land.

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Green Chop
Forage that is chopped in the field while succulent and green and fed directly to livestock. If allowed to ferment, it will turn to silage.
Guthion
See Azinphons-Methyl
Gypsum
Calcium sulfate often applied to the soil surface to supply calcium and to correct the alkaline content of soils.

Harmonized index of consumer prices
The harmonized index of consumer prices (HICP) is an economic indicator constructed to measure the
changes over time in the prices of consumer goods and services acquired by households. The HICP gives
comparable measures of inflation in the euro-zone, the EU, the European Economic Area and for other
countries including accession and candidate countries. The HICP is calculated according to a harmonized
approach and a single set of definitions. The HICP provides the official measure of consumer price inflation in the euro-zone for the purposes of monetary policy in the euro area and assessing inflation convergence as required under the euro convergence criteria (also known as Maastricht criteria).
Hammer Mill
See Feed Grinder.
Hay
A crop which has been cut and cured by drying for storage; principally legumes, grasses, or grain
crops.
Hay Baler
A machine used for compressing loose grass into compact bales. The pick-up baler picks up grass
from a windrow and the bale is made while the machine is in motion. Three principle bales are formed
square bales up to 200 pounds each, square bales up to 2 tons each, and round bales averaging 1400
pounds each.

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Hay Conditioner (Hay Crusher)
A mechanical device consisting of two closely spaced, parallel, smooth surface rollers which
crush the fresh cut stems of hay to facilitate drying and curing. Or a mechanical device consisting of two
closely spaced, parallel rollers with corrugations resembling gear teeth paralleling the axle that kinks the
stems of hay to break them open. Both methods result in a more even and rapid drying of the hay and less
loss than conventional swath curing methods.
Hay Mower-and-Conditioner (Hay-Mower-and-Crusher)
A power drawn machine, combining the cutting mechanism of the mowing machine with a set of
rollers which crimp or crush stems and heavy parts of the hay as it is cut, which facilitates drying and curing and reduces the loss of valuable leaves.
Hay Rake (Wheel Rake, Side Delivery Rake, Hay Rake, Cylinder Side Delivery Rake)
A farm implement that rakes hay into loose, continuous windrows for convenience in bunching or
gathering by hay balers.
Hay Tedder
A device consisting of a wheel-mounted frame which has a series of small forks attached to a
crankshaft. It is used to stir and loosen hay in the swath for more even and quicker drying.
Headquarters (HQ)
The National Agricultural Statistics Service (NASS) HQ is located in Washington D.C.
NASS HQ coordinates the operations for collecting data and publishing estimates for agriculture.
Herbicide
Any chemical used to control, suppress, or kill plants, or to severely interrupt their normal growth
processes. Some herbicides kill a broad range of plants while other herbicides are selective.
Herbicide, ALS
Herbicide that binds to the acetolactate synthase (ALS) enzyme in the plant.
Herbicide, Contact
A herbicide that kills a plant by simply coming in contact with the plants’ leaves.

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Herbicide, Selective
A herbicide which kills only certain groups of plants, e.g., 2,4-D kills broadleaf plants but not
grasses.
Hundredweight (CWT)
A marketing term referring to 100 pounds of a commodity. Abbreviated “cwt.”
Herbicide Resistant (HR)
A plant variety that is resistant to the effects of a particular herbicide.
Hog-Corn Ratio
See "Corn-Hog Ratio."
Hybrid
A plant resulting from a cross between parent plants that are not genetically identical.
Hydraulic
A system where fluids, usually oil, under pressure are used as a mechanism to transfer power.
IMI Corn
Corn hybrids that are tolerant or resistant to imidazolinone herbicides.
Implement
Any farm machine used to perform operations when raising crops or livestock.
Inaccessible
A sample unit which cannot be contacted, interviewed, etc. during the survey period.

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Index Formulas

Elementary price index Formula
Specially, an elementary price index is a price index for an elementary aggregate. As such, it is
calculated from individual price observations and usually without using weights. Three examples of elementary index number formulas are the Carli, the Dutot, and the Jevons.
Carli (1804) suggested price index as an arithmetic mean of the price relative

1
n

PCA ( p0 , pt )

n

pi ,t

i

pi , 0

Dutot (1738) suggested price index as a ratio of average prices

PDU ( p0 , pt )

i

pi ,t n

i

pi , 0 n

Jevons (1865) proposed a simple geometric mean index
n

pi ,t

i

pi , 0

PJE ( p0 , pt )

1n

Laspeyres price index
A price index defined as a fixed-weight, or fixed-basket, index that uses a basket of goods and
services for the base period. The base period serves as both the weight reference period and the price reference period. It is identical with a weighted arithmetic average of the current to base period price relatives using the value shares of the base period as weights, also called a “base-weighted index.” It is defined as

PL ( pt , p0 )

i

pti q0i

i

p0i q0i

i

pti i
w0 , where w0i
p0i

p0i q0i
pi qi
i 0 0

Lowe price index
A basket-type family of price indices that compares the prices of period t with those an earlier period 0, using a certain specified quantity basket qn, where qn is between period t and period 0.

PLO

p t qn
p 0 qn

The family of Lowe indices includes, for example, the Laspeyres index (qn = q0) and Paasche index (qn = qt).
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Paasche price index
A price index defined as a fixed-weight, or fixed-basket, index that uses a basket of goods and
services for the current period. The current period serves as the weight reference period and the base period as the price reference period. It is identical with a weighted harmonic average of the current to base
period price relatives using the value shares of the current period as weights, also called a “current
weighted index.” It is defined as

PP ( pt , p0 )

piqi
i t t
i

p0i q ti

i

pti
p0i

1

1

wti

, where wti

pti qti
.
i i
p
q
t
t
i

Young price index
A weighted average of price index ratio between the current year t and the price reference year 0
where the weights are value shares sn that sum to 1. The Young price index thus is defined as

PYO

sn

pt
, where sn
p0

pbqb
.
pbqb

If b = 0, Young price index becomes Laspeyres index. If pb = p0 and qb = qt Young index
equals to Paasche index.
Index Numbers
A computed number measuring the relative change in the price of items included in the specific
index from a base period. A price index for feed items of 250 (based on 1967=100) implies the current
aggregated price for the items included in this feed index cost 2.5 times as much than comparable items in
1967.
Inert Material
Inactive filler material used in fertilizers and chemicals as a carrier for the desired active materials to facilitate preparation, shipment, storage, or use.
Input
Items such as seed, fertilizer, chemicals, feed, farm machinery, fuel, labor, and land used in the
production of an agricultural product.

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Input Provider
The company or individual that sells or contributes products used in the production of agricultural
commodities.
Insecticide
A chemical killer of insect pests.
Insecticide, Systemic
A substance which, when absorbed by plants, renders them toxic to insects feeding on them.
Integrated Pest Management
The control of one or more pests by a broad spectrum of techniques ranging from biological
means to pesticides. The goal is to keep damage below economic levels without eliminating the pest
completely (production gains justify the additional cost for control).
Irrigation
Artificial watering of land by surface flooding, sprinkling, or subirrigation methods to stimulate
plant production in place of, or in addition to, natural precipitation.
Karmex
See Diuron.
Kernel
The whole grain of corn, wheat, etc.
Kilogram
A measure of weight equal to 1,000 grams or about 2.2 pounds.
Kocide 101
See Copper Hydroxide.
Lannate
See Methomyl.

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Lasso
See Alachlor.
Laying Feed.
A type of poultry feed that is fed to hens or pullets producing eggs.
Lexone
See Metribuzin.
Lime
Ground limestone, calcium carbonate, added to the soil to help correct an acidic soil condition, to
raise the pH Level.
Lime, Burned
Also known as “Quicklime”. Liming compound formed when limestone is heated to drive off
carbon dioxide, leaving the oxide form.
Lime, Dolomitic
Calcium carbonate lime which also contains levels of natural magnesium.
Linuron (Lorox) 50%
A selective weed control chemical in field corn, sweet corn, grain sorghum, soybeans, asparagus,
carrots, celery (post transplant), parsnips, potatoes, cotton, and wheat (Pacific Northwest). It is used for
short-term control of annual weeds in noncrop areas such as roadsides and fence rows.
List Sample
A sample of potential farm operators or agribusinesses selected from a LSF.
List Sampling Frame (LSF)
A list of agricultural operators in a State. Each classified operation name becomes a sampling
unit. The name may be an individual, manager, farm or ranch, corporation, institution, etc.
Live Weight
The gross weight of a live animal as compared to the slaughtered dressed weight.

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Livestock
Any domestic animal produced or kept primarily for farm, ranch, or market purposes, including
beef and dairy cattle, hogs, sheep, goats, and horses.
Lorox
See Linuron.
LP Gas
Liquefied petroleum gas such as butane, propane, or any mixture of the two, which is kept under
pressure in a metal container. Farm use is mainly for pumping engines and farm tractors.
Malathion 5 pounds/gallon and 9.9 pounds/gallon
Controls a wide variety of insects including aphid, spider mites, scale insects, house fly, mosquitoes and a large number of sucking and chewing insects attacking fruits, vegetables, ornamentals and
stored products; sorghum, rice, barley, corn, cotton, oats, hay and wheat. NASS collects prices for two
different formulations of this product.
Mancozeb 75% DF or 80% WP
Protects many fruit, vegetable, nut, and field crops against a wide spectrum of plant diseases. It is
cleared for use as a seed treatment for cotton, potatoes, corn, safflower, sorghum, peanuts, tomatoes, flax
and cereal grains.
Maneb 75% DF, 80% WP and 4 lbs/gal
NASS collects prices for different formulations of this product. Used for the control of early and
late blights on potatoes and tomatoes and may other diseases of fruits, vegetables and field crops (tobacco, wheat), also as a turf fungicide.
Manure Spreader
A 2-wheel or 4-wheel implement designed for hauling and scattering manure in a broken-topulverized form with a high degree of uniformity of spread at the destination point. The manure is conveyed to a point where it is passed through higher speed shredders before it is pitched by blades mounted
on a rapidly rotating horizontal bar or cylinder.

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Market News Service (MNS)
A branch of Agricultural Marketing Service. Its function is to provide market reports depicting
current conditions on supply, demand, prices, trends, movement, and other pertinent information affecting
the trade in livestock, meat, and wool.
Mash
A complete poultry ration composed of ground grains and soybean meal scraps, dried skimmed
milk, alfalfa meal, salt, limestone, and fish oil, vitamins or other fortifying materials.
MCPA (4 pounds/gallon)
For postemergent control of many annual and perennial broadleaf weeds. For use on small grains,
rice, peas, grassland and turf. Application rate 0.5 -1.0 pint per acre.
Metasystox-R
See Oxydemeton-methyl.
Methidathion (Supracide 25%)
An insecticide and acaricide to control alfalfa weevils and certain other insects in alfalfa, scales in
citrus, spider mites, bollworm, budworm, lygus bug, pink bollworm, and whitefly in cotton. For use in
apples, sunflower, artichokes, almonds, cherries, apricots, pears, nectarines, plums, prunes, walnuts,
peaches, and pecans.
Methomyl (Lannate 2.4 pounds/gallon)
An insecticide with broad spectrum control of insects in vegetables, soybeans, cotton, other field
crops, certain fruit crops, and ornamentals (commercial plantings).
Methyl Parathion (2 pounds/gallon)
Used for control of boll weevil in cotton; sorghum; corn; soybeans; rice; wheat and other small
grains.
Metribuzin (Sencor) 75%
Effective for control of a large number of grass and broadleaf weeds. For use on soybeans, wheat,
barley, peas, lentils, potatoes, sugarcane, alfalfa, other hay, asparagus, tomatoes and fallow land.

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Micronutrient
A mineral required in a relatively small amount for plant growth. Micronutrients required for
plant growth are Boron, Chloride, Copper, Iron, Manganese, Molybdenum, and Zinc.
Middlings
A by-product of flour milling, from whole grains, comprising several grades of granular particles.
Used as animal feed.
Milk-Feed Ratio
Number of pounds of dairy concentrate ration that are equal in value to one pound of milk; that is,
the price received by producers for one pound of milk divided by the price of a pound of dairy concentrate feed.
Minerals
See “Trace Mineral”.
Minimum Tillage
An energy-saving and erosion-control soil management system where cropland preparation methods involve no plowing and limited cultivation.
Molasses
Thick syrup obtainable as sugar cane, beet, citrus, or wood molasses. All are low in protein but
high in carbohydrates, vitamins, and minerals, such as calcium, magnesium, potassium, and iron. The
lowest grade, called blackstrap, is mainly used as a feed supplement.
Moldboard Plow
A primary tillage machine with 1-18 curved metal plates (bottom or moldboards) that engage the
soil to a depth up to 12 inches. The curvature of the moldboard causes the soil or furrow slice to be completely inverted. This action pulverizes the soil and buries almost all of the crop residue or stubble.
Most Commonly Sold
Most commonly sold is the determining factor for pricing a specific item. This refers to the item
purchased most frequently or generally bought by producers. Pricing on the basis of the most commonly
sold items within defined commodity limits will accurately reflect the changes in price levels paid by the
farmer. Defined commodity limits may include brand, make, model, a specific size, etc.

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Mower (Sickle Bar Mower)
A machine with a mowing sickle cutting bar which is designed to cut forage for hay, weed, etc.
Mower - Conditioner
See Hay Mower-Conditioner.
MSMA 8 pounds/gallon
Postemergent applications for johnsongrass, other grassy weeds and cocklebur in noncropland.
Preplant applications in cotton, bearing citrus (except Florida), non-bearing orchards. This chemical is
also used to control crabgrass, broadleaf weeds in turf and as a tree killer.
Mulch-Till
A conservation tillage system in which the soil surface is worked with tillage tools such as a chisel, disk, or field cultivator prior to planting. Mulch-till incorporates part of the crop residue into the top
few inches of the soil, helping increase roughness and moisture retention where it is needed.
Multi-Frame Sample
Involves using an area and list frame together. An area sample measures list incompleteness.
Each area tract operator is matched against the list of agricultural operators on the list frame to determine
if it is overlap or nonoverlap.
Mycoshield
See Oxytetracycline.
Myclobutanil 40%
Fungicide used to control anthracnose, scab, powdery mildew, rhizoctonia, rust, septoria, and
other similar diseases on a variety of fruit crops, berries, cucurbits, hops, tomatoes, beans, asparagus, and
pine and poplar trees.
N-P-K and S
Chemical symbols for nitrogen, phosphorus, potassium, and sulfur.
NAD (Naphthaleneacetamide) (Amid-Thin W 8.4% wettable powder)
A plant growth regulator used to thin apple and pear blossoms. It is used to prevent premature
fruit fall in apples and cherries. This product stimulates root formation in cuttings and transplants.

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Napropamide (Devrinol) 50%
A selective herbicide to control several grass and broadleaf weeds in orchards, vineyard, directseeded tomatoes, strawberries, tobacco, peppers, ornamentals, and other crops.
Nematocide
Any substance used to kill parasitic nematodes.
Nematode
Microscopic, worm-shaped parasitic animals. Nematode damage can be severe in some crops.
Nitrogen (N)
A chemical element essential to life and one of the primary plant nutrients. Animals get nitrogen
from protein feeds, plants get it from soil, and some bacteria get it directly from air. Nitrogen is one of the
three primary ingredients in complete fertilizers. Nitrogen content is the XX in a fertilizer’s analysis of
XX-0-0.
Non-Probability Sample
Does not meet the criteria of a randomized sample where every unit in the sampling frame has a
chance of being included in the sample. Members of the sampling frame are chosen based on the appropriateness for the study since there are a limited number of them with the characteristic in the area being
studied.
Non-response
Failure of a respondent to reply to a survey questionnaire; may be item nonresponse (refuse to answer one or more questions), survey non-response (refuse to answer any or most of the questions), or inability of enumerator to locate respondent during the survey period (inaccessible).
No-Till
Method of planting crops that involves no seedbed preparation other than opening small slits in
the soil so that seed can be placed at the intended depth. There is generally no cultivation during crop
production, but chemicals are often used for weed control.
Off Feed
Refers to an animal that has stopped eating or eats very little (usually the result of having eaten
too highly concentrated feed or too great a quantity). Most often occurs with fattening animals.

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Oil, 7 pounds/gallon (Oil, Super oil, Supreme)
Used as dormant sprays to control scale insects, aphid eggs, spider mite eggs, summer oils against
aphids, mites, and scale crawlers, parasiticides for application to livestock, carriers for other pesticides,
herbicides by themselves, and adjuvants to increase efficiency of fungicides.
Oilseed Meal
The product obtained by grinding the cakes, chips, or flakes that remain after most of the oil is
removed from oilseeds. Oilseed meals are mainly used as a feedstuff for livestock or poultry. They are
also used as a raw material in processing edible vegetable-protein products.
Omite
See Propargite.
Operator
The person responsible for all or most of the day-to-day decisions for the retail operation. The
operator could be the owner, hired manager, or a partner.
Organic
A production system that is managed in accordance with regulations governing organics to respond to site-specific conditions by integrating cultural, biological, and mechanical practices that foster
cycling of resources, promote ecological balance, and conserve biodiversity. Note that no genetically
modified seed or synthetic pesticides can be used in an organic production system.
Other Hay
The Other Hay category should only be used if the harvested hay does not fit the other categories
like alfalfa and alfalfa mixtures, wild hay, or small grain hay) that may be identified on a questionnaire.
Examples of Other Hay crops include bluegrass, timothy, fescue, bermuda, and sudan grasses and clover
(if it is not part of an alfalfa mixture).
Outlier
A very unusual survey value when compared with most other responses to same question.
Out-of-business
A retail operation that is no longer in business.

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Oxamyl (Vydate) 2 pounds/gallon
An insecticide, nematicide, and acaricide to control certain insects, mites, and/or nematodes on
many field crops, vegetables, fruits, and ornamentals.
Oxydemeton-Methyl (Metasystox-R) 2 pounds/gallon
A systemic insecticide and acaricide with contact and systemic action on many destructive pests
that attack certain vegetable, fruit, and field crops. Primary use is to control aphids, mites, thrips, leafhoppers, and other sucking pests.
Oxytetracycline 17%
An antibacterial and antibiotic chemical used to control bacterial spot on peaches, fire blight on
pears, and bacterial wilt of bentgrass.
Palatability
The appeal and acceptability of feedstuffs, including the taste, odor, texture and temperature of
the feed.
Paraquat (Parazon) 3 pounds/gallon
For desiccation of seed crops; for noncrop and industrial weed control in bearing and non-bearing
fruit orchards, shade trees and ornamentals; for defoliation and desiccation of cotton; for harvest aid in
guar, soybeans, sugarcane, and sunflowers; for pasture renovation; for use in “No-Till” or before planting
or crop emergence, dormant alfalfa and clover, directed spray and for killing potato vines.
Parity
A relationship which defines a level of purchasing power for producers equal to an earlier base
period.
Parity Index
See Prices Paid Index.
Parity Price
The price giving a unit of a farm commodity the same purchasing power or exchange value in
terms of goods and services as farm commodities had in the base period 1910-14.

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Parity Ratio
The ratio of the prices received index over the prices paid index, using 1910-14 as the base period. It measures the relative purchasing power of products sold by producers.
Partner
An individual within a partnership.
Pendimethalin (Prowl 3.3 pounds/gallon)
For preemergence or postemergence use in field corn; preemergence or preemergence incorporated use in potatoes; early postemergence use in rice; postemergence incorporated use in sorghum; and
preplant incorporated use in cotton, soybeans, tobacco, peanuts, and sunflowers. Controls most annual
grasses and certain broadleaf weeds.
Permethrin (Synthetic Pyrethroids 2-3.2 pounds/gallon)
For use on cotton, soybeans, vegetables and fruit. Used to control beet army worm, bollworm,
cabbage looper, cotton fleahopper, cotton leafperforator, lygus bugs, pink bollworm, tarnished plant bug,
and tobacco budworm. Effective broad spectrum insecticide.
Pesticide
A substance or mixture of substances to control insects, rodents, fungi, weeds, and other forms of
animal or plant life considered as pests. Pesticides include insecticides, fungicides, herbicides, and nematocides.
Pesticide Product Formulation
The concentration of a pesticide and other ingredients that make up the product.
pH Number
Number that indicates acidity or alkalinity of a solution. Number seven indicates a neutral solution; numbers above seven indicate an alkaline solution; and numbers below seven indicate an acidic solution.
Phorate (Thimet) 20%
A soil and systemic insecticide used to control a wide range of insects on a variety of crops such
as alfalfa, barley, beans, corn, cotton, peanuts, potatoes, sorghum, sugar beets, soybeans, sugarcane, and
wheat.

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Phosmet 50%
An insecticide used in a wide variety of crops including alfalfa, almonds, apples, apricots, cherries (tart), citrus, corn, cotton, cranberries, pecans, blueberries, grapes, nectarines, peaches, pears, peas,
potatoes, plums/prunes. This chemical controls alfalfa weevil, boll weevil, codding moth, leafrollers, oriental fruit moth, plum curculio, grape berrymoth, and many others.
Phosphate (P2O5)
A term indicating a fertilizer which supplies phosphorus, one of the three primary ingredients in a
complete fertilizer. The phosphate content in a fertilizer’s analysis is indicated as the XX’s in 0-XX-0.
Photodegradation
A process of breaking down a substance through reaction to light.
Phytotoxic
Injurious or lethal to plants.
Planter
An implement that uses seed plate metering devices (mechanical or air activated) to drop seed
through a boot or shank into a seed bed opened by a shoe or disc.
Plow
Any of various implements designed to perform primary deep tillage operations on the soil, usually in preparation for planting.
Plow Down
To bury material lying on the surface of a field, such as fertilizer or a cover-crop (green manure),
by plowing.
Poast
See Sethoxydim.
Point of First Sale
The point in the marketing channel where the firm selling the product gives up ownership of the
product.

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Potash (K2O)
A term used to indicate fertilizers which supply high levels of potassium. The potash content is a
fertilizer’s analysis is indicated as the XX’s in 0-0-XX.
Potassium (K)
A major element required by plants and animals. Potassium content (XX) in a fertilizer analysis is
indicated as 0-0-XX.
Potassium Chloride
Common chemical fertilizer having the analysis of 0-0-60.
Potassium Nitrate
Common chemical fertilizer having the analysis of 13-0-44.
Potassium Sodium Nitrate
Common chemical fertilizer having the analysis of 15-0-14.
Potassium Sulfate
Common chemical fertilizer having the analysis of 0-0-49.
Power-Take-Off (PTO)
System of shafts used to transmit power from a tractor’s engine to an attached implement. Standard PTO speeds are 540 rpm and 1000 rpm.
Preemergence
Before the emergence of a specified weed or crop.
Premix
A mixture of one or more microingredients and a carrier (to facilitate uniform dispersion of micronutrients into a larger mixture). A mineral premix contains more trace minerals and vitamins than a
mineral supplement.

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Price Relative
A price relative is the ratio of the price of a specific commodity, such as Corn, in one period to
the price of the same commodity in some other period. The prices NASS uses to compute price relatives
are the commodity average prices at US level. The base period is 1990-1992.
Prices Paid
The price producers pay for goods and services necessary for them to produce and market commodities.
Prices Paid Index (Parity Index)
The Index of Prices Paid is a measure of the change in average prices paid for goods and services
used in family living, production, interest, taxes, and farm wage rates relative to a base period. The index
of prices paid is called the parity index when using the base period 1910-1914=100.
Primary Nutrients
The three major plant nutrients which are nitrogen (N), phosphorus (P), and potassium (K). Phosphorus may also be referred to as phosphate and potassium may be referred to as potash.
Probability Sample
A method of sampling that utilizes some form of random selection. A random selection method
uses a process that assures that the members in the population have a probability of being chosen.
Production Index
An index of 12 subgroup indices to measure changes from a base period in prices paid for most of
the items farmers buy in producing their crops and livestock.
Propargite (Omite) 32%
A miticide with residual killing action, used to control many mites, including brown almond, citrus
red, citrus rust, clover European red, McDaniel, Pacific spider, peach silver, strawberry spider, twospotted spider, Willamette mite, Banks, grass mite, Texas citrus mite, and six-spotted mite. For use on
almonds, apples, apricots, beans, carnations, chrysanthemums, cranberries, corn (field), cotton, figs,
grapefruit, grapes, hops, lemons, mint, nectarines, ornamentals, oranges, peaches, peanuts, pears, plums,
potatoes, prunes, roses, sorghum (grain), strawberries, and walnuts. Postharvest and nonbearing use on
apricots, sweet cherries, and citrus.

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Protein supplement
A feed or mixture of feeds containing 20% or more protein or protein equivalent (e.g., soybean
meal, canola meal).
Prowl
See Pendimethalin.
Public or Industrial Grazing Land
See "Grazing Land, Public or Industrial."
Public or Industrial Grazing Land Association (PIGA)
See "Grazing Land Association, Public or Industrial."
Public Variety
A variety developed by a public university, public research lab or with public funds making the
seed stock available to anyone.
Questionnaire
A form used to ask specific questions and to record the responses given to the survey questions by
selected sample units. The questionnaire may be on paper or on a computer screen using Computer Assisted Telephone Interview (CATI) or Computer Assisted Personal Interview (CAPI).
Quota Sampling Scheme
The selection of sample unites from an incomplete frame that meets predetermined target sample
sizes. Quota sampling is used when it is difficult or too costly to create a complete listing of the population from which to sample. Instead target sample sizes are defined for subgroups (regions or states) of the
population and sample units are identified in the population until those targets, or quotas, are met. The
resulting sample is non-probability based and no attempt is made to estimate sampling weights or likewise variances or reliability statistics.
Ration
The amount of feed an animal receives in a 24 hour period.
Ration, Balanced
A daily allowance of livestock or poultry feed; mixed to contain suitable proportions of nutrients
required to promote normal development.
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Reference Date
The date used as a reference point for asking respondents survey questions. The reference date for
the Prices Paid Surveys is March 15.
Relative Importance
The relative importance (relative weight) of an item represents its basic value weight, including
any imputations, multiplied by the relative price change from the weight date to the date of the relative
importance calculation, expressed as a percentage of the total value weight for all commodity categories.
When the total value is fixed, the relative importance remains constant. However, NASS uses a five-year
moving average method to compute the weights for price indexes. Thus, the relative importance changes
each year. The relative importance of Feed, for example, changes from 11.4 for 2009 to11.9 for 2010.
Release Date
The date the survey results are published and released.
Refusal
A person representing a sample unit who will not cooperate in the survey and who refuses to provide sufficient information to satisfactorily complete the questionnaire.
Residue
The quantity of pesticide remaining on or in the soil, plant parts, or animal tissue.
Respondent
The person who provides the information necessary to complete a survey interview.
Restricted Use Chemical
A pesticide which is felt to cause unreasonable adverse effects on the environment. A restricted
use pesticide may be used only by a certified applicator on designated crops and under specified conditions.
Ridge-Till
Method of planting crops that leaves the soil undisturbed from harvest to planting. Ridges formed
while cultivating serve as the next year’s seedbed. Herbicides and cultivation control weeds. Ridge-till is
good for poorly drained areas.

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Rotary Cutter (Rotary Weed Cutter)
A large, power-driven blade rotating in a horizontal plane mounted on a tractor, used for cutting
various types of vegetation.
Rotary Hoe
A series of curved spider wheels attached either to a solid shaft or in segments of two to four
wheels for flexibility. Usually used to kill small weeds in summer fallow or row crops and sometimes as a
wind erosion stop-gap.
Rotary Mower
A machine that uses a rotary cutting mechanism for mowing forage, grain, weeds, lawns, and other
vegetation. Two common types are (a) the rotary knife blade which rotates rapidly in a horizontal plane
having a vertical shaft; (b) the cylinder type, in which knives attached to a horizontal shaft cut off the
vegetation when passing over a horizontal shear plate.
Roughage
Course livestock feed such as hay and silage, high in fiber and low in total digestible nutrients.
Roundup
See Glyphosate.
Row Space
For crops planted in rows, the distance from the center of one row to the center of the next row.
Rubigan
See Fenarimol.
Sample
A group of farm operators or agribusinesses selected from a sampling frame to participate in a survey at a particular time. See "Area Sample"; "List Sample"; and "Multi-Frame Sample."
Sampling Unit
An identifiable unit (for example, a name, farm, or business) of a sampling frame that may be selected when drawing a sample. For an area frame sample it may be a segment, tract or field and for a list
frame sample it is a name.

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Secondary Nutrients
Essential plant nutrients needed in less quantity than primary nutrients. These nutrients are Calcium (Ca), Magnesium (Mg), and Sulfur (S).
Seed
An embryonic plant with sufficient nutrients required during germination and early growth until
the plant is able to produce its own food.
Seedbed
The upper portion of the soil prepared to receive seed and promote germination and growth.
Seed, Biotechnology (Biotech) Varieties
The term biotechnology refers to genetically modified seed varieties that have been developed to
possess particular traits. Examples include Round-Up Ready soybeans, which provide the soybean resistance to the effects of Round-Up (which would otherwise kill it), and YieldGard corn, which contains
an insecticidal protein which kills caterpillar larvae, including the corn borer.
Seed Corn
Corn raised to produce seed stock. It may involve complicated pollination programs designed to
retain desirable hereditary traits.
Seed Cotton
The raw product which has been harvested but not ginned, containing the lint, seed, and foreign
matter.
Seed Potatoes
Pieces of potato planted to produce a crop.
Seed, Proprietary Varieties
Seeds developed by commercial plant breeders which are protected by patent. By law, proprietary
seed must be purchased from seed vendors each year – that is, seed cannot be collected from the current
year’s harvest and planted for the next crop season. Proprietary varieties include all biotech varieties and
some non-biotech varieties.

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Seed, Public or Common Varieties
Seed which is not protected by patent and which may be collected and saved from one year’s harvest and used to produce a crop the next year. Common varieties may be used repeatedly by a single individual and may also be shared between growers. Public varieties are most often developed by universities,
public research labs, or non-profits.
Seed Treatment
Is an application of a pesticide or having the seed subjected to a process designed to reduce, control, or repel disease organisms, insects, or other pests that attack seed or seedlings.
Selective Herbicide
A herbicide which kills only certain groups of plants, e.g., 2,4-D kills broadleaf plants but not
grasses.
Selective Pesticide
A chemical that is more toxic to some species than others.
Sencor
See Metribuzin.
Sethoxydim (Poast 1.5 pounds/gallon)
A systemic postemergence herbicide for selective controls of annual and perennial grasses in sugar beets, soybeans, cotton, peanuts, flax, rapeseed, alfalfa, tomatoes, phaseolus beans, broadleaved ornamentals, dry peas, onions, nonbearing fruit, and many other dicotyledoneous crops.
Sevin
See Carbaryl.
Side Dress
To apply at the side or a row of plants.
Silage
Feed for livestock, kept juicy and succulent by fermenting chopped green corn, legumes or grasses. The chief crops stored this way are corn, sorghum, and various legumes and grasses. The main use of
silage is for cattle feed.

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Simazine (Princep) 4 pounds/gallon
A selective herbicide which controls most annual grasses and broadleaf weeds in corn, established alfalfa, established bermudagrass, cherries, peaches, citrus, caneberries, cranberries, grapes, apples,
pears, certain nut, asparagus, certain ornamental and tree nursery stock, in turf grass sod production and
lawns. At higher rates, it is used for non-selective weed control in industrial areas, lawns, and similar areas.
Sinbar
See Terbacil.
Sodium Bentazon (Basagran) 4 pounds/gallon
For selective postemergence control of many troublesome broadleaf weeds in soybeans, rice,
corn, peanuts, dry beans, dry peas, snap beans for seed, green (succulent) lima beans, and mint.
Sodium Nitrate
Common chemical fertilizer having the analysis of 16-0-0.
Soil Application
Application of a pesticide to the soil rather than to a growing crop or weed.
Soil Compaction
A constricting condition in any soil which causes impervious layers to form which limit plant root
development and water penetration. Some soil types and lack of organic material will increase rate of
compaction.
Soil Fertility
Conditions in the soil which are favorable for sustaining plant growth.
Soil Tilth
The overall physical condition of the soil, frequently regarding its suitability as a seedbed.
Soluble Powder
A finely ground dry powder formulation which will dissolve in water or other liquid.

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Soybean Meal
The material left after the extraction of oil from dried soybeans. The extract is “toasted” and
ground.
Spot Treatment
Application of a pesticide to a small, discrete area.
Sprayer, Power Hydraulic
There are two types (1) A sprayer with hydraulic pump (piston, gear, roller, etc.) driven by gasoline engine, electric motor, PTO. Comprises a tank or other container for spray material. (2) A powerdriven pump which draws spray material into the discharge system. Tank capacity ranges from 25-1600
gallons. Sprayer types can be mounted, skid, trailer, or self-propelled and are either boom, boomless or
gun.
Stacked Gene Variety
Genetically modified seed variety that includes both insect resistance and herbicide resistance.
State Field Office
Coordinate all the field activities for the National Agricultural Statistics Service (NASS). NASS
maintains a network of 46 State field offices, serving all 50 States and Puerto Rico through cooperative
agreements with State departments of agriculture and universities.
Statistically Defensible Survey
A survey whose procedures and specifications can with stand court challenge or other investigation. The survey should have an adequate sample size, randomly selected respondents, carefully worded
questions, professional interviewing, reasonable editing, correct summarization, and appropriate publication.
Statistics
Totals, averages, percentages, and other numbers computed from population or sample data.
Statistics Canada
Statistics Canada (French: Statistique Canada) is the Canadian Federal government agency commissioned
with producing statistics. Its headquarters is in Ottawa.

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Strata or Stratification
The classification of sampling units in a population into homogeneous groups. An area frame is
stratified based on land use, such as intensity of cropland, rangeland, wasteland, urban areas, etc. A list
frame is stratified based on operation control data, such as number of livestock, grain storage capacity,
cropland, and total acres operated.
Strip-Till
A conservation tillage method where the soil is left undisturbed prior to planting. Tillage in the
row is done at planting using tools such as a rototiller. Weeds are controlled with herbicides and cultivation.
STS Soybeans
Soybeans that are resistant to Synchrony STS herbicide.
Subsampling
A general term for selecting a sample from a sample.
Sulfur (S)
Sulfur is a macronutrient which can be found in commercially produced fertilizers.
Sulfur 80%
Effective for control of a variety of plant diseases – brown rot of peaches, apple scab, peanut leafspot, mildew on roses, powdery mildew on ornamentals, grapes, peaches, and other crops; rusts; fleahoppers, and mites on tomatoes, carrots, alfalfa, melons, and beans.
Super Oil
See Oil.
Supplement
Feed or feed mixtures used to improve the nutritional value of basal feeds. A supplement is rich
in protein, energy, vitamins, minerals and/or antibiotics, and is combined with other feeds to produce a
more complete feed.
Supracide
See Methidathion.

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Supreme
See Oil.
Surfactant
A chemical added to a pesticide which improves the emulsifying, dispersing, spending, and/or
wetting properties of the pesticide.
Survey
The collection of data from specific sample units. Data reported by the selected sampling units,
when summarized, provides an indication of what the total would be if all the sample units within the
population of interest had reported.
Survey Period
The time period during which survey data collection can occur. Primarily determined by the survey’s reference date and due date. See “Date, Reference.”
Tank Mix
Any pesticide spray which is prepared immediately before use by mixing the chemical powder(s)
and the water in the spray tank and emulsifying by agitation and pumping.
Technology fees
Fixed sum charges by an institution for their technology or agricultural service, primarily associated with seeds.
Temik
See Aldicarb.
Terbacil (Sinbar) 80%
Controls many annual and some perennial weeds in such crops as sugarcane, alfalfa, apples,
peaches, blueberries, strawberries, citrus, pecans, and mint.
Terbufos (Counter) 15%
Control of corn rootworm and other soil insects infesting field corn. Control of sugar beet maggots on sugar beets; greenbug on grain sorghum.

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Thimet
See Phorate.
Thiodan
See Endosulfan.
Tillage
The practice of working the soil to bring about more favorable conditions for seed germination,
root growth, and weed control to improve plant growth.
Tolerance
The amount of pesticide residue that is permitted to federal regulation to remain on or in a crop.
Tolerance, zero
No amount of the pesticide chemical may remain on the raw agricultural commodity when it is
offered for shipment.
Top-Dress
To apply fertilizer or manure on top of the ground without working it into the soil.
Topsoil
The naturally forming upper layer of soil, normally rich in organic matter.
Toxicity
The capacity of a substance to produce illness or adverse effect. The measure of damage resulting
from exposure to a substance.
Trace Element
A chemical substance which is essential in very small amounts by both plants and animals.

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Trace minerals
Dietary supplement provided to livestock which contains nutrients needed in small amounts (such
as manganese (Mn), copper (Cu), zinc (Zn), selenium (Se), iron (Fe), cobalt (Co), iodine (I) and fluorine
(Fl)). Trace mineral is sold in blocks of either 40 or 50 pounds. The weight of the block depends on the
type and amount of filler, but the mineral content is the same (94.5% – 97.5%).
Tractor
A self propelled vehicle with 2 or 4-wheel drive or traction driven using treads, with a gasoline or
diesel engine used to supply power to other machines in one or more of 3 ways; pulling at the drawbar or
hitch point; rotary power from the power-take-off (PTO); hydraulic fluid power.
Transgenic plant
A plant whose genetic composition has been altered to include selected genes from other plants or
species, using methods other that those used in traditional plant breeding.
Treflan
See Trifluralin.
Triadimefon 50%
A systematic fungicide to control powdery mildew on cereals, deciduous fruit, grapes, and vegetables. It is also used to treat rust diseases of cereals, coffee, seed grasses, pine and diseases on sugarcane,
pineapple, turf, and ornamentals.
Trifluralin (Treflan) 4 pounds/gallon
Pre-emergent herbicide that is incorporated into the soil to provide control of broadleaf weeds and
annual grasses. This herbicide controls susceptible weeds by killing seedlings as they germinate; however, it does not control established weeds. For use in many crops including cotton, peanuts, sugar beets,
grain crops, forage (alfalfa, kale, and rape), most vegetables, horticultural crops (woody nursery stock and
many perennials), vineyards, fruit and nut trees, and cottonwood trees grown for pulp.
Turkey-Feed Ratio
Number of pounds of turkey ration equal in value to one pound of live turkey; or, the price per
pound farmers receive for turkey divided by the price per pound of feed.
Turkey grower
Specialized type of feed fed to turkeys that are being raised for meat.

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United States Department of Agriculture (USDA)
A Department within the Federal government having a cabinet level Secretary reporting to the
President. It functions to propose legislation and establish regulations in the best interest of agriculture.
Unleaded Gasoline
Unleaded gasoline is usually sold as a blend of gasoline and ethanol, most commonly composed
of 90 percent gasoline and 10 percent ethanol by volume.
Urea
A non-protein, organic compound of nitrogen made synthetically by a combination of ammonia
and carbon dioxide and used in fertilizers and as a livestock feed supplement.
U.S. Energy Information Administration (EIA)
The statistical and analytical agency within the U.S. Department of Energy. EIA collects, analyzes, and disseminates independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment. EIA is the Nation’s premier source of energy information and, by law, its data, analyses, and forecasts are independent of approval by any other officer or employee of the United States Government.
Value / Expenditure Weights
Value weights are the measures of the relative importance of commodities in the price index. The
weights reference period values of the various components covered by the price index. Being commensurate and additive across different commodities, value weights can be used at aggregation levels above the
detailed commodity level. NASS uses farm expenditures and cash receipts to compute the value weights
for prices paid and prices received indexes respectively.
Vapor Drift
The movement of vapors created when applying pesticides from the area of application to adjacent areas.
Vitamin
An organic substance which performs specific and necessary functions for normal growth and
maintenance and is required in relatively small concentrations by livestock.

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Weed
Any plant growing where it is not wanted.
Weed, Noxious
Any harmful or destructive weed. Usually, they are perennials and especially difficult to eradicate. They spread by their roots (rhizomes) and/or runners (stolons) or pieces of the plant, may have a
hard seed coat (20-40 years germination), may be poisonous to livestock or parasitic to plants. Each State
specifies which weeds are noxious and mandates control requirements. Canada thistle, Russian thistle,
field bindweed, chickpea, Johnson grass and morning glory are some weeds recognized as noxious.
Weights
A set of numbers between zero and one that sum to unity are used when calculating price indexes.
Value shares sum to unity by definition are used to weight price relatives, or elementary price indexes, to
obtain higher-level index. Although quantities are frequently described as weights, they cannot serve as
weights for the prices of different types of commodities whose quantity are not commensurate and use
different units of quantity that are not additive. The term “quantity weights” generally is used loosely to
refer to the quantities that make up the basket of goods and services covered by an index and included in
the value weights.
Wettable Powder
A powder which mixes with water to form a suspension but does not dissolve; continuous agitation is required to maintain suspension.
Wholesale
The selling or buying of goods or commodities in large quantities, usually at a lower price per
item.
Windrow
The gathering of grains or forage in a row to facilitate mechanical harvesting.
Windrower
A mechanical device used for taking the cut hay or grain from the swath and turning it into a windrow
ready for further handling with the hay loader, field chopper, hay baler, or combine.

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Zero Tolerance
No amount of pesticide may remain on or in the raw commodity when it is offered for sale.
Zeta-Cypermethrin 0.8 – 1.5 pounds/gallon
NASS collects prices for two different formulations of this product. Pyrethroid insecticide used to control
various caterpillar pests, weevils, leafhoppers, aphids, and other insects on a variety of vegetable, fruit
and forage crops, corn, wheat, cotton, oilseeds, rice, sugarcane, and tree nuts.
Ziram 76%
A fungicide used extensively on almond and peaches to control shot hole, brown rot, and peachleaf curl.
It is also used to treat vegetable diseases. The most stable of the metallic dithiocarbamates, nonphytotoxic
except for zinc-sensitive plants. This product does not build up in the soil and is rapidly decomposed by
weathering. Sometimes used on pecans, apples, and pears to control scab and bull’s-eye rot.

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Common Abbreviations

AF
AG
AMS
ARMS
AS
ASB
BAE
BLM
BLS
CAPI
CATI
CPI
CV
CWT
D
DF
E
EC
EDR
EIA
EPA
ERS
ES
F
FCRS
FL
FC
FO
FOB
FSA
G
GMO
HT
HQ
IR
L
LO
LMPR
LSF
LV
MF

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Aqueous flowable
Agricultural formulation
Agricultural Marketing Service
Agricultural Resource Management Survey
Aqueous suspension
Agricultural Statistics Board
Bureau of Agricultural Engineering
Bureau of Land Management
Bureau of Labor Statistics
Computer Assisted Personal Interviewing
Computer Assisted Telephone Interviewing
Consumer Price Index
Coefficient of Variation
Hundredweight
Dust
Dry flowable
Emulsifiable concentrate
Emulsifiable concentrate
Electronic Data Reporting
Energy Information Administration
Environmental Protection Agency
Economic Research Service
Emulsifiable solution
Flowable
Farm Costs and Returns Survey
Flowable
Fertilizer compatible
Field Office
Free On Board
Farm Service Agency
Granular
Genetically Modified Organism
Herbicide tolerant
Headquarters
Insect resistant
Liquid
Low odor
Livestock Mandatory Price Reporting
List Sampling Frame
Low volatility
Modified formulation

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Common Abbreviations (continued)

MNS
NASDA
NASS
OL
OMB
P
PITW
PPITW
RTU
S
SL
SP
ULV
USDA
VR
W
WDG
WP
WSB
WSP

Market News Service
National Association of State Departments of Agriculture
National Agricultural Statistics Service
Oil soluble liquid
Office of Management and Budget
Pelleted
Prices paid by producers for production, interest, taxes, and wage rates
Prices paid by producers for commodities and services, interest, taxes, and wages
Ready to use
Solution
Slurry
Soluble Powder
Ultra-low volume concentrate
United States Department of Agriculture
Virus Resistant
Wettable powder
Water dispersible granule
Wettable powder
Water soluble bag
Water soluble packet

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Chapter Four. Parity Prices, Parity Ratio, and Feed Price Ratios
IN THIS CHAPTER

Three major provisions of the amended
Act relating to the calculation of parity prices are:

History / Background .................................... 4-2
Legislation..................................................... 4-4
Parity Prices ................................................. 4-8
Parity Price Calculations............................ 4-8
Uses of Parity Prices .................................. 4-9
Limitations of Parity ................................. 4-10
Parity Ratio .................................................. 4-13
Interpretations and Uses ........................... 4-13
Adjusted Parity Ratio................................ 4-14
Limitations ................................................ 4-14
Feed Price Ratios ......................................... 4-15
Background ............................................... 4-15
Feed Price Ratio Calculations ................... 4-15
Limitations of Feed Price Ratios .............. 4-17
References .................................................... 4-18
Appendix
A: Summary of Major Agricultural Legislation
and Farm Bill Programs .......... 4A-1 – 4A-4
Tables........................................... 4T-1 – 4T-2

Parity Prices published by NASS are
computed under the provisions of Title III. Subtitle
A, Section 301(a) of the Agricultural Adjustment
Act of 1938 as amended by the Agricultural Acts
of 1948, 1949, 1954, and 1956.

USDA, National Agricultural Statistics Service

(1) The 'parity price' for any agricultural commodity, as of any date, is determined by multiplying the adjusted base price of such commodity
by the parity index.
(2) The 'adjusted base price' of any agricultural
commodity, as of any date, is
(i)
the average of the prices received by
farmers for such commodity, at such
time as the Secretary may select during each year of the ten-year period
ending on the 31st of December last
before such date, or during each marketing season beginning in such period if the Secretary determines use of a
calendar year basis to be impracticable, divided by
(ii)
the ratio of the general level of prices
received by farmers for agricultural
commodities during the period January 1910 to December 1914, inclusive.
(3) The 'parity index' or Prices Paid Index, as of
any date, shall be the ratio of
(i)
the general level of prices for articles
and services that farmers buy, wages
paid hired farm labor, interest on farm
indebtedness secured by farm real estate, and taxes on farm real estate, for
the calendar month ending last before
such date to
(ii)
the general level of such prices, wages, rates, and taxes during the period
January 1910 to December 1914, inclusive.
The prices and indexes published by
NASS and the data used in computing them, is
determined by the Secretary, whose determination
is final. Section 301(a) (1) (F) outlines authority
for the Secretary of Agriculture to make special
adjustments in the method of computing parity
4-1

prices for particular commodities if the method
outlined in the Act results in parity prices seriously
out of line with those of other commodities.

The Code of Federal Regulations, Title 7,
Volume 1, Part 1-26 mandates the publication of
the price indexes and the data used in computing
them be published in the monthly Agricultural
Prices report. Also published in the monthly report
is the parity ratio. The parity ratio is a percentage
relationship between the Index of Prices Received
and the Index of Prices Paid.

History / Background
The idea of parity stemmed from a continuous search for a concrete measure of economic
justice for the farmer. Fluctuating conditions in the
economic life of farms and of the nation have
steadily modified the concept of parity. Parity did
not develop as the practical application of an economic theory, but as a result to assist the agricultural community in the early 1900s. The economic
justification in its present form is from rationalization. Parity is a practical economic and political
expedient, not a theory. (Grove, 1943)

The acute economic emergency was in
part the consequence of a severe and increasing
disparity between the prices of agricultural and
other commodities. This disparity largely destroyed the purchasing power of farmers for industrial products, broke down the orderly exchange of
commodities, and seriously impaired the agricultural assets supporting the national credit structure.
The Agricultural Adjustment Act of 1933 declared
that these conditions in the basic industry of agriculture had affected transactions in agricultural
commodities with a national public interest, had
4-2

burdened and obstructed the normal currents of
commerce in such commodities, and rendered imperative the immediate enactment of title I of this
Act.

The enactment of the Agricultural Adjustment Act of 1933 initiated the computation of
parity prices by the USDA’s statistical agency.
The statistical agency has gone through a number
of name changes throughout history. Today, the
agency is the National Agricultural Statistics Service (NASS).

The idea that came to be called parity developed in the early 1920s to describe the agricultural depression that followed World War I (Black,
1942). The U.S. farm sector grew when the frontier was settled in the early years of the 20th century and high farm prices during World War I encouraged even more production. The end of the
war coincided with the onset of mechanization
which slowed the growth of demand. Overproduction created low prices which resulted in low per
capita income of farmers.

The idea of parity had both statistical and
political origins (Black, 1942). If there had never
been any statisticians collecting data on prices of
farm and other commodities, “farm parity” would
never have come about. The parity movement was
merely the outward expression of the maladjusted
relationship between agriculture and the rest of
society that developed at the end of World War I.

The parity concept was introduced at a
conference on agricultural policy called by Secretary of Agriculture Henry C. Wallace in 1922.
George N. Peek named it “fair exchange value” at
the conference (Fite, 1954). Legislatively, the conUSDA, National Agricultural Statistics Service

cept emerged in the first McNary-Haugen (tariff)
bill. The bill outlined a method for measuring the
inequality of purchasing power of farm products
and the means to dispel the inequality. In the pamphlet “Equality for Agriculture” which Peek privately printed in 1922, “a fair exchange value for
any crop” was defined as “one which bears the
same ratio to the current general price index as a
ten-year pre-war, average crop price bore to the
average price index, for the same period.” (Peek,
1922).

Peek got the statistical framework for his
idea from the USDA bulletin, “Prices of Farm
Products in the United States” authored by George
F. Warren (Warren, 1921). Warren, a Cornell University professor, had toured the country interpreting the price movements of 20 farm products and
changes in the “all commodities” index of the Bureau of Labor Statistics (BLS). Warren explained
that the “all commodities” price movements resulted from monetary factors and the individual
commodity price changes were due to supply and
demand conditions for that product.

The USDA invited Professor Warren to
Washington, DC, to author a bulletin based on his
research. That publication, issued in 1921, designated the ratio of prices received by farmers to the
all commodities wholesale price index as the “purchasing power of farm products.” The farm price
series was a weighted average, weights being the
relative production of different crops and livestock
products as reported in the 1910 Census of Agriculture.

In 1922 the USDA began publishing a
purchasing power index series on a regular basis in
“Weather, Crops, and Markets” (NASS). Prices in
1913 were called the base, or 100. By 1921 the
USDA, National Agricultural Statistics Service

index value was 61, compared with a value of 111
in 1918. After several revisions of the weights in
both the “all commodities” and the “prices received” indexes, the parity ratio appeared at or
above 100 for the entire period 1924-1929. The
farm products whose prices had risen most also
increased most in output, notably dairy products
and tobacco. This revision was not released until
September 1934.

Parity prices for farm products were first
defined by the Agricultural Adjustment Act of
1933. Agricultural leaders recognized that high or
low prices for farm products are not in themselves
of primary significance. Of far greater importance
is what farm products will buy in terms of food,
clothing, feed, machinery, fertilizer, and other
items farmers need for living and for production.

The Agricultural Adjustment Act of 1933
made it the policy of Congress to reestablish prices
to farmers at a level that would give agricultural
commodities a purchasing power, with respect to
articles that farmers buy, equivalent to the purchasing power of agricultural commodities in the
base period. Parity prices have come to be a widely used parity standard. They are the prices that
give a unit of a farm commodity the same purchasing power or exchange value, in terms of goods
and services bought by farmers, as a unit of the
same commodity had in the 1910-1914 base period.

The 1910-1914 period was chosen as the
base because it was considered a relatively normal
period when price relationships were generally
stable across all sectors of agriculture and nonfarm industries. In 1933 the Secretary of Agriculture's economic advisers said the 1910-1914 base
period was selected because (a) it "represented a
4-3

period of considerable agricultural and industrial
stability... with equilibrium between the purchasing power of city and country," (b) it was free
from, major economic and political disturbances,
and (c) prices of most major products sold were
considered to be in fair relationship to prices paid
by farmers. They stated further that the act "bases
the parity prices upon the most recent period when
economic conditions, as a whole, were in a state of
dynamic equilibrium."

The index base period for comparison
specified by law is the period from 1910 through
1914. As a result, the commodity parity price
comparisons do not take into account the many
technological developments that have affected efficiency and input utilization for production of
crops and livestock.

Parity prices are computed in terms of
prices received by farmers. Prices received generally relate to the average of all classes and grades
of a given commodity sold by farmers. The same
is true of parity prices. Parity is a national concept,
and parity prices are not computed by State, commodity grades, or for specific markets. In connection with some programs, however, differentials
are determined for grade, location, or season. Differentials may be applied to the national average
parity price to determine the parity equivalent for a
specific grade or location. Parity prices are not
adjusted for seasonal variation.

Two principal refinements in the legislative definition of parity since 1933 are:
(1) To include in the Index of Prices Paid by
Farmers, which is used in computing parity
prices, interest on mortgage debt secured by
farm real estate, taxes on farm real estate, and
wages paid to hired farm labor.
(2) To compute adjusted base period prices for
individual agricultural commodities, using
price relationships for the most recent 10-year
period. The 1910-1914 base period, however,
remains the reference point for expressing parity prices for farm products.

Legislation
The Agricultural Adjustment Act of 1933
contained the first definition of parity. The act
stated that it was the policy of Congress to…
…reestablish prices to farmers at a level
that will give agricultural commodities a
purchasing power with respect to articles
that farmers buy, equivalent to the purchasing power of commodities in the base
period. The base period in the case of agricultural commodities except tobacco
shall be the prewar period, August 1909 to
July 1914. In the case of tobacco, the base
period shall be the post-war period, August 1919 to July 1929.
…approach such equality of purchasing
power by gradual correction of the present
inequalities therein at as rapid a rate as is
deemed feasible in view of the current
consumptive demand in domestic and foreign markets.

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USDA, National Agricultural Statistics Service

Several amendments to this first definition
stipulated an alternative base period for the purposes of marketing agreements or marketing orders where determining the purchasing power of a
commodity would be difficult. The alternative
base period was used in cases where a commodity’s purchasing power could not be satisfactorily
determined from USDA’s available statistics. The
base period…
…for purposes of such marketing agreement or order, shall be the postwar period,
August 1919 to July 1929, or all that portion thereof for which the Secretary finds
and proclaims that the purchasing power
of such commodity can be satisfactorily
determined from the available statistics of
the Department of Agriculture.

Provision was also made for calculating
parity prices:
… give to the commodity a purchasing
power with respect to the articles that
farmers buy equivalent to the purchasing
power of such a commodity in the base
period; and, in the case of all commodities
for which the base period is the period
August 1909 to July 1914, which will also
reflect current interest payments per acre
on farm indebtedness secured by real estate, tax payments per acre on farm real
estate, and freight rates, as contrasted with
such interest payments, tax payments, and
freight rates during the base period.

During 1910-1914, the “golden age of agriculture” on which parity is based, the farm sector
was viewed receiving a “fair share” of the economy’s income and growth. That purchasing power
is measured by the “parity index” which is a comUSDA, National Agricultural Statistics Service

posite of prices paid by farmers (1910-1914 base
period) for commodities, services, interest, taxes,
and wage rates. Items used in farm production and
items used for family living are included in both
commodities and services. The farm production
items in the prices paid index include inputs such
as feed, seed, fertilizer, and feeder livestock that
are used only by specialized enterprises and inputs
such as fuel, motor vehicles, machinery, and agricultural chemicals that are commonly used on all
types of farms. The family living items in the prices paid index have been represented by the consumer price index (CPI-U) since 1978. Family
living items include household goods, apparel,
utilities, and medical care. By pricing items where
farmers buy and sell them rather than at central
markets, USDA removed an explicit index of
freight rates from the parity index to prevent double counting.

In response to economists’ widespread
criticisms of the parity price concept and to the
political climate of postwar America, Congress
changed the legal definitions of the parity index,
parity prices, and parity income during the enactment of the Agricultural Adjustment Act of 1948.
Those definitions remain in force today.

Under the 1948 law, the “parity index” is
the ratio of:
(i) The general level of prices for articles
and services that farmers buy, wages
paid hired labor, interest on farm indebtedness secured by farm real estate,
and taxes on farm real estate, for the
calendar month ending last before such
date to (ii) the general level of such
prices, wages, rates, and taxes during
the period January 1910 to December
1914, inclusive.

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The 1948 act changed the base price concept from average 1910-1914 prices for individual
commodities to “adjusted base prices” which are
the most recent 10-year average prices received
for the commodity deflated by the corresponding
10-year average of the index of prices received for
all commodities. The 1948 law defined the “new”
parity prices as the product of the adjusted base
period prices and the parity index. The act also
provided for a “transitional” parity price to smooth
adjustment from the old to the new definition. The
change had the effect of retaining the purchasing
power parity of all agricultural products at the
1910-1914 levels, but allowed relative parity of
individual commodities to be based on recent performance and to fluctuate in response to changing
market conditions.

appeared in the Soil Conservation and Domestic
Allotment Act of 1936, which declared that the
purpose of the act was the …
… reestablishment, at as rapid a rate as the
Secretary of Agriculture determines to be
practicable and in the public interest, of
the ratio between the purchasing power of
the net income per person on farms and
that of the income per person not on farms
that prevailed during the 5-year period
August 1909 - July 1914, inclusive, as determined from statistics available in the
Department of Agriculture, and the
maintenance of such ratio.

The 1936 definition was revised in the
Agricultural Adjustment Act of 1938, which provided that…
The adjusted base period (1910-1914)
price for each commodity is derived from the average price received in the 10 most recent complete calendar years and the corresponding 120month average of the index of prices received by
farmers (1910-1914 base). An allowance is made
for unredeemed loans and other supplemental
payments farmers receive for commodities grown
under price support programs. The adjusted base
price, multiplied by the parity index, gives the parity price for the specific commodity. This process
permits parity prices to be calculated for commodities like soybeans, which were not widely grown
in 1910-1914. The moving average underlying this
changing base period price effectively raises the
parity price for commodities whose recent price
performance is stronger than the aggregate and
lowers the parity price for commodities with
weaker than average prices.

…“parity”, as applied to income, shall be
that per capita net income of individuals
on farms for (SIC) farming operations that
bears to the per capita net income of individuals not on farms, the same relation as
prevailed during the period from August
1909 to July 1914.

Both definitions relate to income ratios
that existed in the same time span as the base period established for determining parity prices (19101914). Income parity under the 1936 definition
was realized in every year between 1941 and
1956, and, under the 1938 definition, was realized
each year between 1942 and 1955 with 98 percent
of parity achieved in 1941 and 1956. The absolute
levels of farm and nonfarm incomes per capita are
regularly published in the Income and Balance
Sheet Statistics from USDA.

The first statutory definition of “parity” as
it relates to income rather than purchasing power
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USDA, National Agricultural Statistics Service

The Agricultural Act of 1948 redefined
parity income, effective January 1, 1950, in the
following way…
…“Parity”, as applied to income, shall be
that gross income from agriculture which
will provide the farm operator and his
family with a standard of living equivalent
to those afforded persons dependent upon
other gainful occupation. “Parity”, as applied to income from any agricultural
commodity for any year, shall be that
gross income for such year as the average
gross income from such commodity for
the preceding 10 calendar years bears to
the average gross income from agriculture
for such 10 calendar years.

The 1948 act thus ushered in the standard
of living concept of income parity, a subtle improvement over a money-income concept. A person’s living standard depends on the goods, services, and intangibles consumed (including environment, health, safety, aesthetics, and lifestyle)
rather than on income gained from work. To the
extent that monetary values can be attached to a
standard of living, they derive from the expenditure on items of consumption rather than from occupational income. However, differing preferences
among farm and nonfarm people for identical
items of consumption and differing availabilities
of unpriced consumption distort the estimate away
from the true standard of living. Hathaway estimated in 1963 that the welfare levels and labor
returns of farm families would be comparable to
nonfarm families if the money income of farm
families equaled about 86 percent of nonfarm family income (Hathaway, 1963).

USDA, National Agricultural Statistics Service

USDA research on the comparability of
farm and nonfarm income revealed key information on the farm sector’s structure. Part of that
research was Grove’s study of the per capita income by economic class of farm. Based on the
value of 1949 sales reported to the Census of Agriculture, Grove found that farms with sales greater than $25,000 generated per capita income 2.4
times the per capita income of the nonfarm population, and farms with sales between $10,000 and
$25,000 generated 1.1 times the per capita income
of the nonfarm population. However, when the
incomes of the smaller farms (less than $10,000 in
sales) were taken into account, the per capita income of all persons living on farms averaged
about half that of the nonfarm population. The result clearly showed the relationship between farm
size and income, and the fallacy inherent in comparisons based on the average of a heterogeneous
farm population.

The definition of parity was most recently
reviewed in 1988 by a committee established by
the Secretary of Agriculture. The committee evaluated changing the 10-year average prices and
prices received indexes to a 15-year average used
in calculating adjusted base prices. No change,
however, was implemented to the current 10-year
averages as little, if any, change would occur to
current parity price levels.

The determination of parity prices is defined in the Code of Federal Regulations, Title 7,
Volume 1, Agriculture Sections 5.1 to 5.6. This
regulation was last revised January 1, 2010. Appendix A contains a summary of major legislation
and farm bill programs. See table 4.1 for parity
ratios and adjusted parity ratios.

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Parity Prices

The parity price of a particular commodity
is the price giving a unit of the commodity a comparable purchasing power to that in the base period. The comparison is made relative to a base period when prices for both paid and received provide an economic balance. By statute, the base
period is 1910-1914.

The concept for parity prices then is essentially a comparison of the prices received for
commodities with the prices paid for production
and living expenses. Parity, at first glance, seemed
to provide a way of gauging agriculture’s economic condition particularly in relation to the urban
sector which provides many of the goods and services producers purchase. Its use as a barometer of
the agricultural sector is well sanctioned by tradition. As prices fall below the parity level, concern
invariably rises among producers and their representatives.

The parity price formula does not measure
cost of production, standard of living, or income
parity. It is not a comprehensive measure of the
economic well-being of farmers. It is based on
price relationships, which are only one component
of the cost of production.

Separate parity prices are calculated for
fresh market and processing fruit and vegetables.
For some fruits such as apricots, peaches, and
pears there are three utilizations, fresh market,
dried, and other processing. These utilization
groups are considered separate commodities and
parity prices computed for each.

Parity Price Calculations

The calculation of parity prices is a two
step process, calculation of commodity adjusted
base prices and the multiplication of the adjusted
base price and the parity index (Prices Paid Index).
The formula for calculating the adjusted base prices is:

P10

ABPc
I 10 * 1

GP10
CR10

100

where,
is commodity Adjusted Base Price,
P10 is ten year average commodity price, I 10 is ten
year average Prices Received Index. GP10 is Government payments, and CR 10 is total farm cash
receipts.

The commodity parity price is derived by
multiplying the commodity Adjusted Base Price
by the Parity Index and dividing by 100.
*PI] / 100,

Parity prices are generally national average prices. Prices represent all grades and qualities
of the same commodity as sold by farmers in local
markets at all locations in the United States. Parity
prices do not represent a price for a specific grade
of the commodity at a specific location.

4-8

where

USDA, National Agricultural Statistics Service

The descriptive steps to calculate parity
prices are:
(1) The average of prices received by farmers for
individual commodities for the 10 preceding
years is calculated (for 2011, the period was
2001-2010). An allowance for unredeemed
loans and for other supplemental payments resulting from price support operations is included for those commodities where applicable.
(2) This 10-year average price is divided by the
average of the Index of Prices Received by
Farmers for the same 10 preceding calendar
years, adjusted to include an allowance for direct government payments under farm pricesupport operations. This computation derives
the adjusted base price for individual commodities.

The adjusted base price ($0.384) multiplied by the parity index (2574 percent) and divided by 100, the January
2011 Parity Index results in a parity
price for corn of $9.88 per bushel. See
the January Agricultural Prices for
further discussion about parity prices
and parity index.
Adjusted Base Price Calculation

=

= 0.384

Parity Price Calculation
[0.384 * 2574] / 100= 9.88

Uses of Parity Prices
(3) Parity prices are computed by multiplying the
adjusted base prices by the current Parity Index (1910-1914 = 100) and dividing by 100.
An example of the computation of the parity price based on data for January 2011 follows.
The 120 month, January 2001December 2010, average of prices received by farmers for corn adjusted
for supplemental price support program payments was $3.16 per bushel.
The l20-month average of the Index of
Prices Received by Farmers, adjusted
to include an allowance for commodity-related Government payments, was
824 (1910-1914 = 100).
The index percentage of 824 is divided by 100 to obtain a ratio of 8.24.
Dividing $3.16 by 8.24 gives $0. 384
per bushel, the adjusted base price.
USDA, National Agricultural Statistics Service

Parity prices had a major role in the Government price-support program from the 1930s
into the 1970s. In the 1980s, use of parity prices in
support programs diminished greatly. The Food
Security Act of 1985 does not mention parity.
When the act expires, however, the permanent legislation would revert to the use of parity prices for
agricultural programs unless new legislation is
enacted. Existing legislation mandates the calculation and publication of commodity parity prices.

Parity prices are required for administering marketing orders under the authority of the
Agricultural Marketing Agreement Act of 1937.
Currently, USDA's Agricultural Marketing Service
administers 10 marketing orders for milk. The
1996 Farm Act required consolidation of the Federal milk marketing orders into 10-14 regional orders, down from 33. Currently, there are 23 specific fruit, vegetable, and nut commodities covered
by five regional market order offices. Under present legislation, parity prices with appropriate ad4-9

justments may be used for the purpose of the Agricultural Marketing Agreement Act of 1937. Parity has an integral role in putting into action orders
and in determining when market orders are in effect, suspended, or terminated.

Other acts currently requiring use of parity
prices are:
(1) The Food and Agricultural Act of 1977. It es-

tablishes loan levels at 90 percent of parity for
certain agricultural commodities when commercial export sales are suspended because of
short-supply determinations.

Parity prices and the parity index indicate
price relationships. They do not indicate farmer
well-being, net income, or production costs. They
merely show how current prices relate to those in
1910-1914. They are reference prices which contain built in biases ensuring that parity prices increase more rapidly than farm commodity prices.
Thus, parity prices are not useful for judging
whether current market prices may be deviating
from underlying trends simply because of weather
or short run demand aberrations. Parity prices also
do not make appropriate reference points for administering programs.

(2) The Agriculture and Food Act of 1981. It sets

price support at 100 percent of parity when national security or foreign policy interests mandate an agricultural export embargo.

Existing legislation mandates continued
calculation and publication of parity prices, uses
them to set price supports for selected commodities, employs them to administer agricultural marketing orders, and relies on them in a number of
special circumstances.

Limitations of Parity
There is widespread agreement among agricultural economists and others that parity prices
do not provide a good basis for agricultural price
and income controls. Parity prices freeze price
relationships among agricultural products and other products in a pattern that, in most cases, is out
of date with current agricultural production practices. The inaccuracy of parity price as a measure
of net farm income results from the variability of
net farm income with changing commodity prices
and quantities produced.

4-10

The parity formula disregards changes in
the farm sector since the base period. Farms are
larger and more productive than during the base
period. Farm productivity has increased more rapidly than nonfarm productivity for as long as a
USDA multifactor productivity index has been
reported. (Tiegen, 1987, June)

The interest component of the parity formula is too broadly defined. A bias results from
calculating the interest component of the parity
index as payments per acre of farm real estate.
That is, the index reflects both price and quantity
dimensions. (Tiegen, 1987, September) While the
index increases when interest rates increase, it also
increases when other factors change. Other factors
affecting the index change are the amount of land
being mortgaged, the amount of the down payment
of the mortgage, and the value of the land being
mortgaged. (Tiegen, 1987, June) This is a weakness to the prices paid concept which is a building
block to the parity index.
Index differences in the adjusted base
price definition move parity prices away from
market prices. The adjusted base price is the ratio
USDA, National Agricultural Statistics Service

of the current parity index to the 10-year average
of the prices received index including adjustments
for government program payments received. The
parity index responds to different factors than does
the index of prices received causing the two to
change at different rates and to seek different levels. (Tiegen, 1987, June)

The resurgence of farm prices during
World War II brought about price controls for
farm products and other commodities. Parity prices were used as a ceiling to administer the price
control program. Toward the end of the war, farmers would have received parity incomes or more,
even without parity prices. The Steagall Amendment of 1941 set price support at 90 percent of
parity for all commodities whose production was
expanded by the war effort. As World War II was
drawing to a close, intellectuals began to discuss
the structure of society and American social policy
in peacetime. In 1945 the American Farm Economics Association (AFEA) sponsored an essay
contest on farm price policy. The winning essays
were published in the November 1945 issue of the
Journal of Farm Economics. There was virtually
unanimous agreement among winning analysts
that price parity hinders the functioning of a proper pricing system. (AFEA and Johnson, 1945)

The following views were presented from
the winning essays:
Price relationships of 1910-1914
grossly distort the current pattern of
consumer choices.
Cost relationships among commodities and regions in that time differ
greatly from current relationships,
freezing resources into an out-of-order
design.

USDA, National Agricultural Statistics Service

Government actions to realize parity
goals have insulated agriculture from
the socially beneficial effects of a sensitive pricing system.
Necessary shifts of population out of
agriculture are prevented.
Raising prices above free-market levels cannot raise inadequate farm incomes of noncommercial farmers.
Parity fails to reflect the prevailing
grade, geographic area, and seasonal
price differentials.
Parity would price products out of
foreign and domestic markets resulting in either surpluses or production
and marketing quotas.

The AFEA impaneled a committee on parity concepts. The committee set forth a slightly
different set of weaknesses and limitations to the
parity formula (AFEA and Wright, 1946):
By adopting a historical base period,
the parity formula freezes a functional
and otherwise self-adjusting price
mechanism.
In allocating productive resources and
people, the only alternative to relative
prices is the direct order of the government.
The parity formula ignores the progress made in farm technology which
has reduced the costs of producing
some crops more than others.

4-11

The formula makes no allowance for
the improvement in quality of goods
and services bought by farmers.
The high support prices based on parity gave the farmer incentive to produce on fewer acres as much as resourcefulness would allow.
The parity formula has subsidized excess production simply to fill public
storage facilities.
Manufacturers of substitutes will be
greatly encouraged by the fixed price
of farm crops like cotton.
Fixed parity prices do similar harm in
the foreign market by pricing American exports out of the range of importing countries.

Congress responded to these analyses and
criticisms and the political climate of the time by
changing the legal definitions of parity price and
parity income in the Agricultural Adjustment Act
of 1948. The law provided for “transitional” parity
prices in order to smooth the changeover from the
old definition to the new definition during the
1950 to 1956 time period.

The 1957 report, as required by section
602 of the Agricultural Act of 1956, Possible
Methods of Improving the Parity Formula, addressed the question of what kind of formula
might be most useful and proposed a number of
changes to parity prices. The report discussed in
depth five changes in parity price formulas to address shortcomings of the current formula:
Moving to different base periods.
4-12

Devising separate parity indexes for
individual commodities.
Adjusting the prices to reflect gains in
production efficiencies.
Reflecting the costs of price stabilization programs in the parity prices.
Shifting to a parity income formula,
based on either historical income ratios or on direct farm/nonfarm comparisons.
The report’s only specific recommendation was to
continue using a 10-year average as the base period for parity prices.

For as long as there have been parity prices, criticisms and proposed improvements have
been made. Since the parity price formula was last
changed in 1956, many of the proposed changes to
the formula from the 1957 report to Congress are
still valid today.

Since 1957 two technical aspects of the
concepts underlying the parity price definition
have been recommended that would keep parity
prices more responsive to current market prices.
The first refinement would change the definitions
of the adjusted base period price by deflating the
moving average of the commodity prices by the
index of prices paid by farmers, rather than the
prices received index. Under this definition, the
parity price would be consistent with a long run
average, adjusted for current input costs. The second refinement would change the interest and tax
components of the parity index to reflect price
changes alone, rather than the expenditures they
now reflect. If the tax component cannot be expanded to cover all taxes paid by farmers, then
USDA, National Agricultural Statistics Service

dropping taxes as a component should be considered.

Parity Ratio

The parity ratio (the index of Prices Received by Farmers for the products they sell divided by the Parity Index (1910-1914=100) provides
an indication of the per unit purchasing power of
farm commodities generally in terms of the goods
and services currently bought by producers, in relation to purchasing power of farm products in the
1910-1914 base period. A parity ratio less than
100 indicates that the average per unit purchasing
power of all farm products is lower than during the
1910-1914 base period.

The parity ratio is a measure of price relationships and not a measure of farm income, producers’ total purchasing power, or producers’ welfare. The latter depends on a number of factors
other than price relationships. Production efficiency and technology, quantities of farm products
sold, and supplementary income, including that
from off-farm jobs and federal programs, must be
utilized to measure a producer’s well-being.

with interest, taxes, and farm wage rates. The parity ratio consists of the relationship between these
two indexes expressed as a percentage.

The parity ratio measures the purchasing
power of products sold by farmers in terms of
things they buy, compared with their purchasing
power in the base period, 1910-1914. As of any
given date, the parity ratio is computed by dividing the Index of Prices Received by Farmers by
the Parity Index and converting the ratio to a percentage. If the result is above 100 percent (i.e., if
the Prices Received Index is higher than the Parity
Index), products sold by farmers have a greater per
unit purchasing power than in 1910-1914. In contrast, when the ratio is below 100 percent, the average per unit purchasing power of commodities
sold by farmers is less than in the base period. Parity ratios from 1959 to 2010 are shown in table 4.1
in the Appendix.

Income from sales of farm commodities in
many cases is supplemented by Government payments under farm support programs. To recognize
income supplements provided by Government
farm programs, an adjusted parity ratio is calculated incorporating direct Government payments.
The method of computation which was published
in the January 1964 issue of Agricultural Prices is
outlined below:

Interpretations and Uses

The Index of Prices Received by Farmers
is a measure of the changes in average prices that
farmers receive for agricultural commodities. The
Parity Index (Indexes of Prices Paid by Farmers
for Commodities and Services, including interest,
taxes, and farm wage rates) is a measure of changes in prices paid by farmers for goods and services
used in family living and in production, together
USDA, National Agricultural Statistics Service

(1) From annual data on receipts by farmers from
marketings and Government payments, the ratio of Government payments to receipts from
marketings is computed.
(2) The Index of Prices Received by Farmers is
then multiplied by a factor that is 1.000 plus
the above ratio. Thus, for 1989, the ratio of
payments to receipts from marketings was
0.067 (6.7 percent). For each month in 1989,
the Index of Prices Received by Farmers was
4-13

multiplied by 1.067, and the resulting product
divided by the Parity Index to give the adjusted parity ratio.

Adjusted Parity Ratio
The importance of nonprice income supplements provided to farmers by the Government
makes it essential to provide a parity ratio that reflects these supplemental funds to farmers. The
method of computing adjusted parity ratios is as
follows:
1) Compute the ratio of Government payments to
annual cash receipts from marketings producers receive.
Factor for adjusting the ratio of prices received
to prices paid indexes for January 2010 is
1.04.

No data on cash receipts from marketings
or Government payment data are available in January of the current year. In order to provide a preliminary estimate of the adjusted parity ratio, an
estimate of the ratio of Government payments to
annual receipts from marketings is needed. The
USDA’s Economic Research Service (ERS), at the
beginning of each year, estimates what the ratio of
Government payments to receipts from marketings
is expected to be for the year. This estimate is used
to compute the preliminary adjusted parity ratio
published each month in Agricultural Prices. Each
year in January, adjusted parity ratios are revised
based on actual data to compute the ratio of Government payments to annual receipts of marketings.

Limitations

Parity Ratio Adjustment Factor = GP / CR +1,
where GP is the Government Payments and
CR is total farm cash receipts.
Government Payments and total Cash Receipts
for
2010
are
$12,176,400,000
and
$312,300,000,000, respectively.
12,176,400,000 / 312,300,000,000 + 1 ≈ 1.04

2) The Index of Prices Received by Farmers for
any month in the year is multiplied by the
parity ratio adjustment factor to account for
Government Payments received by producers.
The ratio of the adjusted Prices Received Index and the parity index multiplied by 100
gives the adjusted parity ratio. For January
2010,
Adjusted Parity Ratio (PR)

The parity ratio is a measure of price relationships and not a measure of farm income, farmers’ total purchasing power, or farmers’ welfare.
The latter depends upon a number of factors other
than price relationships, such as changes in production efficiency and technology, quantities of
farm products sold, and supplementary income,
including that from off-farm jobs and federal programs. See Table 4.1 in the Appendix for adjusted
parity ratios.

The limitations for parity prices apply to
parity ratios. Descriptions of production efficiencies and technologies, quantities of farm products
sold, and supplementary income weaknesses can
be found in the parity prices limitations section.

[[Jan. 2010 Prices Rec’d * PR Adj. Fac.]/ Parity Index]*100
January 2010 Adjusted Parity Ratio
(886 * 1.04) / 2407 = 921 / 2407 = .382 *100 = 38

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USDA, National Agricultural Statistics Service

Feed Price Ratios

Feed price ratios indicate whether price relationships between feed and livestock are becoming more or less favorable. The ratio is the amount
of feed equal in value to the farm price of a unit of
livestock commodity.

The largest component in the cost of producing livestock and livestock products is feed.
Feed price ratios, then, provide a measure of the
general profitability of production. The NASS
published feed price ratios provide a general level
of industry profitability for all U.S. producers of
milk, eggs, broilers, turkeys, hogs, and fed cattle.

The individual ratio is an indication of
how many units of a feed purchased are equal in
value to one unit of product sold, based on US average prices received for specified date. Feed price
ratios, when charted over time, present a picture of
the changing overall general condition (weakening/strengthening) for the industry represented.
The higher the ratio the more favorable is the profitability in the industry.

and turkey-feed resulted from prices paid program
changes initiated in January 1995. Prices paid estimates for feed items were reduced from a quarterly survey to an annual April survey. In February
1995, the methodology for calculating the four
feed price ratios (milk, eggs, broilers, and turkeys)
was modified. The feed rations formula changed
from using the quarterly complete feed costs to a
modeled ration methodology based on a mix of
ingredients common to dairy and poultry production as provided by universities specializing with
animal nutrition programs. The new methodology
utilizes major raw feed component prices from
NASS agricultural commodity prices reports that
are published monthly. The major feed components of corn and soybeans account for 83 and 91
percent of the total ingredients in the rations. The
contribution for feed additives and antibiotics are
held constant.

Historical data for the new methodology
carried back to 1985 were published in the February 1995 Agricultural Prices Report. Feed price
ratio data are also available from the NASS
searchable data base called Quick Stats. The Quick
Stats database can be found at the bottom of
http://www.nass.usda .gov/.

Feed Price Ratio Calculations
Background

The feed ratios for milk, eggs, broilers,
and turkeys were first released in 1960. The hog
ratio followed in 1961 and the steer-heifer ratio in
1969. The feed units and prices used for each of
the commodity ratios are shown in Table 4.2.

Modifications in the calculation of feed
price ratios for broiler-feed, egg-feed, milk-feed,
USDA, National Agricultural Statistics Service

The following are the formulas used to
calculate the six feed price ratios.
Hog-Corn Ratio
The hog-corn ratio measures the bushels
of corn equal in value to one hundred pounds of
hogs, liveweight.
Hog - Corn Ratio

all hogs price per cwt
corn price per bushel
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Steer and Heifer-Corn Ratio

Derived Laying Feed Price

The steer and heifer-corn ratio measures
the bushels of corn equal in value to one hundred
pounds of sheers and heifers, liveweight.

Laying feed price is based on the composite price of 75-percent corn and 25-percent soybeans, U.S. average prices per bushel, where one
bushel of corn equals 56 pounds and one bushel of
soybeans equals 60 pounds.

Steer and Heifer –Corn Ratio =
steers and heifer price per cwt

Dollars per pound of laying feed =

corn price per bushel
0.75 * Corn Price
56

0.25 *

Soybean Price
60

Broiler-Feed Ratio
Broiler grower feed price is based on the
composite price of 58-percent corn and 42-percent
soybeans, U.S. average prices per bushel, where
one bushel of corn equals 56 pounds and one
bushel of soybeans equals 60 pounds. The broilerfeed ratio measures the pounds of broiler grower
feed equal in value to one pound of broilers, liveweight.
Broiler - Feed Ratio

live broiler price

Turkey-Feed Ratio
Turkey grower feed is based on the composite U.S. average prices of 51-percent corn, 28percent soybeans, and 21-percent all wheat, where
one bushel of corn equals 56 pounds, one bushel
of soybeans equals 60 pounds, and bushel of all
wheat equals 60 pounds. The turkey-feed ratio
measures the pounds of turkey grower feed equal
in value to one pound of turkey, liveweight.

broiler grower feed price
Turkey - Feed Ratio

Derived Broiler Grower Feed Price
Dollars per pound of broiler feed =
0.58 * Corn Price
56

Turkey Price
Turkey Grower Feed Price

Derived Turkey Grower Feed Price

0.42 * Soybean Price
60

Dollars per pound of turkey grower feed =
0.51*

Corn Price
56

0.28*

Soybean Price
60

0.21*

All Wheat Price
60

Egg-Feed Ratio
The egg-feed ratio measures the pounds of
laying feed equal in value to one dozen market
eggs.
Egg - feed Ratio

4-16

market egg price
laying feed price

Milk-Feed Ratio
The 16 percent dairy feed is based on the
composite U.S. average prices of 51-percent corn,
8-percent soybeans, and 41-percent alfalfa hay,
where one bushel of corn equals 56 pounds, one
bushel of soybeans equals 60 pounds, and one ton
of alfalfa equals 2,000 pounds. The milk-feed ratio
measures pounds of 16% dairy feed equal in value
to one pound of all milk.
USDA, National Agricultural Statistics Service

Milk - Feed Ratio

All Milk Price
16% Dairy Feed Price

Derived 16 percent Dairy Feed Price
Dollars per pound of 16% dairy feed =
0.51* Corn Price
56

0.08 *

Soybean Price
60

0.41* Alfalfa Price
2000

Limitations of Feed Price Ratios

The feed price ratios published by NASS
represent a general ratio of how many units of feed
can be purchased with the sale of one unit of the
commodity. The ratios, then, can provide some
indication of profitability margins for the industry
in general. These ratios are not intended to provide
a level of profitability for an individual producer
as prices and other production inputs vary by geographic regions.

Many factors affect the level where profitability occurs for an individual producer. Feed
ingredient costs, feed conversion efficiencies, animal genetic characteristics and breeding, etc. are
factors affecting the break-even level of the feed
price ratio and individual producer profitability
margin.

USDA, National Agricultural Statistics Service

4-17

References
American Farm Economics Association, Committee on Parity Concepts.
Retrieved from Cornell University, Albert
R. Mann Library.
http://chla.library.cornell.edu/cgi/t/text/tex
t-idx?c=chla;idno=5033566_4107_004
Norton, L.J., Davis, C.C., Nicholls, W.H.,
and et al. (1945, November). Journal of
Farm Economics, Volume 27(4), 737 –
1016.
Johnson and et al. (1946, February). The
farm price policy awards 1945: A topical
digest of the winning essays. Journal of
Farm Economics, Volume 28(1), 267–
283.
Wright, K.T. (1946, February). Basic
weaknesses of the parity price formula for
a period of extensive adjustments in agriculture. Journal of Farm Economics, Volume 28(1), 294–300.
Brandt, K., Wellman, H.R., Eggert, R.J.,
Henney, H.J., Waugh, F. and Wright, K.T.
(1946, February). Outline of a price policy
for American agriculture for the postwar
period. Journal of Farm Economics, Volume 28(1), 380-397.

The Core Historical Literature retrieved from Cornell University, Albert R. Mann Library.
http://chla.library.cornell.edu/c/
chla/browse/p.html#block1
Black, J. D., (1942). Parity, parity, parity.
Cambridge, MA: Harvard Committee on
Research in the Social Sciences.
Peek, G. N., & Johnson, H.S. (1922).
Equality for Agriculture. (2nd ed.) Moline: Illinois H.W. Harrington.
Fite, Gilbert C.. (1954). George N. Peek and the
fight for farm parity. Norman, OK: University of Oklahoma Press.
Grove, E.W. (1937). The concept of income parity
for agriculture, studies in income and
wealth. Vol. 6. New York: National Bureau of Economic Research.
Hathaway, D.E. (1963). Government and agriculture: Economic policy in a democratic society. New York, New York: The MacMillan Company.
Library of Congress. McNary-Haugen Farm Legislation from http://lcweb2.loc.gov:8081/ ammem/amrlhtml/dtmcnary.html

Eggert, R.J., Froker, R.K., Norton, L.J.,
Wells, O.V., Wright, K.T., and Wellman,
H.R. (1947, November). On the redefinition of parity price and parity income.
Journal of Farm Economics, Part 2, Vol.
29, No. 4 1358-1377.

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USDA, National Agricultural Statistics Service

The University of Arkansas School of Law’s National Agricultural Law Center under cooperative
Agreement No. 58-8201-4-197 with the United
States Department of Agriculture, National Agricultural Library.
Agricultural Adjustment Act of 1933 from
http://www.nationalaglawcenter.org/assets/
farmbills/1933.pdf
Agricultural Act of 1948 from http://www.
nationalaglawcenter.org/assets/farmbills
/1948.pdf
Agricultural Act of 1956 from http://www
.nationalaglawcenter.org/assets/farmbills/1
956.pdf
Food and Agricultural Act of 1977 from
http://www.nationalaglawcenter.org/assets
/farmbills/1977-1.pdf
Food and Agricultural Act of 1981 from
http://www.nationalaglawcenter.org/assets
/farmbills/1981-1.pdf
The McNary-Haugen Bill 1924 - 1928
from http://nationalaglawcenter.org/assets
/bibarticles/kelley_mcnary.pdf
Soil Conservation and Domestic Allotment Act of 1936 from http://www
.nationalaglawcenter.org/assets/farmbills/s
oilconserv1936.pdf
Conference Report to Accompany Steagall
Amendment of 1941 also called Steagall
Commodity Credit Act from http://www
.nationalaglawcenter.org/assets/farmbills/s
teagall1941conf-house892.pdf

USDA, National Agricultural Statistics Service

Tiegen, L. (1987, June). Agricultural parity: Historical review and alternative calculations. USDA. Agricultural Economic
Report No. 571. from http://www
.nal.usda.gov/ref/USDApubs/aer.htm#sort
nbr
Tiegen, L. (1987, September). Price parity: an
outdated farm policy tool? USDA. Economic Research Service. Agriculture Information Bulletin No. 531.
USDA. Agricultural Marketing Service. Agricultural Marketing Agreement Act of 1937
from
http://www.ams.usda.gov/AMS
v1.0/getfile?dDocName=STELPRDC5067
868
USDA. Economic Research Service. (1984, December)
History
of
agricultural
price-support and adjustment programs,
1933-84. Agriculture Information Bulletin
No. 485. from http://www.ers.usda.gov/
Publications/AIB485/
USDA. (1970, October). Major Statistical Series
of the Department of Agriculture, How
They are Constructed and Used: Agricultural Prices and Parity. AH-365, Vol. 1.
USDA. (1970, April). Major Statistical Series of
the Department of Agriculture, Agricultural Prices, Expenditures, Farm Employment, and Wages. AH-671, Vol. 1.
Warren, G. F. (1921, August). Prices of Farm
Products in the United States.
USDA. Bulletin No. 999. Cited in Parity,
Parity, Parity by Black, J.D. page 46.

4-19

Appendix A: Summary of Major Agricultural Legislation and
Farm Bill Programs, 1933-20081
Agricultural Adjustment Act of 1933
the first major price support and acreage reduction program
set parity as the goal for farm prices
acreage reduction achieved through voluntary agreements with producers
markets regulated through voluntary agreements with processors and others
processing taxes used to offset cost of program

Agricultural Adjustment Act Amendments of 1935
gave President authority to impose import quotas when imports interfered with agricultural adjustment programs
designated 30 percent of customs receipts to promote agricultural exports and domestic consumption and help finance adjustment programs

Soil Conservation and Domestic Allotment Act of 1936
payments to farmers authorized to encourage conservation
set parity as the goal for farm income

Agricultural Adjustment Act of 1938
reenacted a modified Soil Conservation and Domestic Allotment Act
provided for acreage allotments, payment limits, protection for tenants
first comprehensive price support legislation with nonrecourse loans
marketing quotas established for several crops

Steagall Amendment of 1941
required support of many non-basic commodities at 85 percent of parity or higher
soon amended to require 90 percent of parity and extended for 2 years after war

Agricultural Act of 1948
shifted price supports from fixed to flexible, a move postponed several years
modernized parity formula

Agricultural Act of 1949
became part of fundamental legislation along with 1938 Act; last major act without an expiration
date
superseded 1948 Act, postponing flexible price supports
cushioned impact of new parity formula

1

USDA. Economic Research Service. (1984)

4A-1

USDA, National Agricultural Statistics Service

Agricultural Act of 1954
established flexible price supports beginning 1955
authorized a CCC reserve for foreign and domestic relief
Agricultural Trade Development and Assistance Act of 1954 (P.L. 480)
became the basic act for selling and bartering surplus commodities overseas and for overseas relief
Agricultural Act of 1956
began Soil Bank program for long- and short-term removal of land from production
Emergency Feed Grain Program of 1961
launched a voluntary acreage reduction program with PIK provisions
Food and Agriculture Act of 1962
continued feed grain acreage reduction program
provided two-tiered feed grain supports with price support payments in addition to nonrecourse
loans
proposed a mandatory wheat program, voted down by referendum
Agricultural Act of 1964
established a wheat certificate program
began a cotton PIK program
Food and Agriculture Act of 1965
first in a series of comprehensive, multi-year farm laws; lasted 5 years
extended voluntary acreage controls to wheat and cotton
wheat certificate program from 1964 extended
Agricultural Act of 1970
provided a more flexible approach to supply control through set asides
limit of government payments to $55,000 per crop
Agriculture and Consumer Protection Act of 1973
target prices and deficiency payments replaced price support payments
payment limit lowered to $20,000
emphasized expanded production to meet world demand
Food and Agriculture Act of 1977
raised price and income supports
continued flexible production controls and target prices
established farmer-owned reserve for grains
set up new two-tiered peanut program

USDA, National Agricultural Statistics Service

4A-2

Agriculture and Food Act of 1981
contained a number of cost-cutting measures
set specific target prices for 4-year length of bill
rice allotments and marketing quotas eliminated
dairy supports lowered
Omnibus Budget Reconciliation Act of 1982
froze dairy price supports
No Net Cost Tobacco Program Act of 1982
established producer-supported fund to repay Government for program costs
required disposal of some nonfarm allotment holdings
Payment-in-Kind (PIK) Program of 1983
provided voluntary, massive acreage reduction by adding payments in kind to regular acreage reduction payments for grain, upland cotton, and rice; instituted by executive action
Dairy and Tobacco Adjustment Act of 1983
froze tobacco price supports
launched a voluntary dairy diversion program
Agricultural Programs Adjustment Act of 1984
froze target price increases provided in 1981 Act
paid diversions authorized for feed grains, upland cotton, and rice
wheat PIK program provided for 1984
Food Security Act of 1985
introduced marketing loan provisions to commodity loan programs to reduce forfeitures
continued the reduction in milk price supports
mandated a milk production termination program
maintained normal marketing relationships between wool and mohair
maintained approximately same percentage of parity for mohair as for wool
authorized optional support programs including marketing loans, loan deficiency payments, target
option program, and inventory reduction payments
Food, Agriculture, Conservation, and Trade Act of 1990
provided producers greater planting flexibility
based payments on historical production rather than current output
The Federal Agricultural Improvement and Reform Act of 1996 (Freedom to Farm Act)
replaced price support and supply control program of direct payments base on historical production
revised and simplified direct payment programs for crops
eliminated milk supports through direct government purchases
authorized 7-year production flexibility contract payments
authority for honey program eliminated

4A-3

USDA, National Agricultural Statistics Service

The Farm Security and Rural Investment Act of 2002
introduced counter-cyclical payments program triggered when current prices fall below target
level and paid on historical production
income support wheat, feed grains, upland cotton, rice, oilseeds provided through direct payments, counter-cyclical payments, and marketing loans
support for peanuts changed from price support program with market quotas to program with
market loans, counter-cyclical payments, direct payments, and a quota buy out
sugar program to operate as a “no net cost” program
new dairy income support program introduced
Food, Conservation, and Energy Act of 2008
enacted an option revenue-based counter-cyclical program, Acreage Crop Revenue Election
(ACRE) program
counter-cyclical payments available for dry peas, lentils, small chickpeas, and large chickpeas
base acreage adjustments for eligible pulse crops, eligible other oilseed acreage
base acres of rice on farm apportioned using 4-year average percentages of acreage planted
reduced payment acres for direct and ACRE payments to 83.3 percent
prohibits direct payments, counter-cyclical payments and ACRE if sum of base acres is 10 acres
or less unless farm is owned by socially disadvantaged or limited-resource producer

USDA, National Agricultural Statistics Service

4A-4

Appendix of Tables
Table 4.1. Parity Ratio and Adjusted Parity Ratio by Year
Year
Parity Ratio
Adjusted
Year
%
Parity Ratio %

Parity Ratio
%

Adjusted
Parity Ratio %

1959 ..............
1960 ..............
1961 ..............
1962 ..............
1963 ..............

81
80
79
80
78

82
82
83
83
81

1985 ...............
1986 ...............
1987 ...............
1988 ...............
1989 ...............

52
51
51
54
55

55
56
58
60
59

1964 ..............
1965 ..............
1966 ..............
1967 ..............
1968 ..............

76
76
79
73
73

80
81
85
79
79

1990 ...............
1991 ...............
1992 ...............
1993 ...............
1994 ...............

50
47
47
47
45

53
50
49
50
47

1969 ..............
1970 ..............
1971 ..............
1972 ..............
1973 ..............

73
72
70
74
91

79
77
75
79
94

1995 ...............
1996 ...............
1997 ...............
1998 ...............
1999 ...............

44
47
43
42

46
48
45
45

1974 ..............
1975 ..............
1976 ..............
1977 ..............
1978 ..............

86
76
71
66
70

87
76
72
68
72

2000 ...............
2001 ...............
2002 ...............
2003 ...............
2004 ...............

39
40
38
40
42

43
44
40
43
44

1979 ..............
1980 ..............
1981 ..............
1982 ..............
1983 ..............

71
65
60
55
56

72
65
62
57
57

2005 ...............
2006 ...............
2007 ...............
2008 ...............
2009 ...............

38
37
40
39
35

42
39
42
40
36

1984 ..............

58

59

2010 ...............

38

39

Computed using indexes on the 1910-14 = 100 base period. The parity ratios are also available for each year 1910-1958

4T-1

USDA, National Agricultural Statistics Service

Table 4.2. Equivalent feed and price components, feed price ratios
Feed Price Ratio
Type and Unit of Feed
Type and Unit of Livestock Priced
Milk feed .................

16 percent dairy feed, pound

Farm price, one pound of whole milk

Egg feed ..................

Laying feed, pound

Farm price, one dozen eggs

Broiler feed .............

Broiler grower feed, pound

Farm value, one pound of live broiler

Turkey feed .............

Turkey feed, pound

Farm value, one pound of live turkey

Hog corn .................

Corn, bushel

Farm price, 100 pounds of live hogs

Steer-heifer corn......

Corn, bushel

Farm price, 100 pounds of live fed cattle

USDA, National Agricultural Statistics Service

4T-2