[Federal Register Volume 59, Number 208 (Friday, October 28, 1994)]
[Unknown Section]
[Page ]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26767]
[Federal Register: October 28, 1994]
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DEPARTMENT OF AGRICULTURE
National Agricultural Statistics Service
Changes in the Index Construction and Data Series of Farm Prices
Received and Paid
AGENCY: National Agricultural Statistics Service (NASS), United States
Department of Agriculture (USDA).
ACTION: Notice.
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SUMMARY: Notice is hereby given that NASS, USDA, plans to change the
construction of the indexes and data series of farm prices received and
paid.
FOR FURTHER INFORMATION CONTACT: Questions or comments on this change
should be sent to Robert W. Milton, Chief, Economic Statistics Branch,
NASS/USDA, Room 5908 South Building, Washington, D.C. 20250; telephone
(202) 720-3570, within 30 days of this notice.
SUPPLEMENTARY INFORMATION: NASS is updating the weights and changing
the construction of its indexes of prices received and paid by farmers.
In conjunction with the new index procedures, additional changes to the
prices received and paid data series will be made as itemized below.
All changes will take effect beginning in January 1995 with data
published in Agricultural Prices.
The prices received and paid indexes are used in computing the
parity prices that NASS is required by statute to publish monthly (7
U.S.C. 1301(a)(1)(c)). The base or fixed weights used in constructing
the indexes have become outdated as the mix of commodities farmers
produce and input items they purchase have changed and are expected to
continue to change over time.
Major changes to the weights and construction of the price indexes
and to the prices received and paid data series are:
(1) A 1990-92 reference and base period will replace the current
1977 reference and 1971-73 base period.
(2) Five-year moving average weights will replace the current fixed
1971-73 base period weights.
(3) Monthly marketing weights that reflect seasonal marketing
patterns will be added for prices received commodities.
(4) The 36-month (1990-92) average prices used as base period
prices for the prices received indexes will be weighted by monthly
volumes of farmers' sales. The current base period (1971-73) prices are
simple averages.
(5) The new indexes will be constructed by multiplying the ratios
of the current prices to the base period prices by the moving average
weights (adjusted for seasonal marketing patterns for the prices
received indexes).
(6) Crop coverage will be expanded in the prices received indexes,
largely for fruits, vegetables, greenhouse/nursery products, and
specialty crops.
(7) Prices Paid Surveys for feed, fuels, fertilizer, agricultural
chemicals, retail seeds, and farm machinery will be conducted annually
in April. The prices paid indexes will still be updated quarterly based
on changes in appropriate Bureau of Labor Statistics (BLS) component
indexes. Prices Paid Surveys for autos and trucks, building materials,
farm supplies, motor supplies, and marketing containers will be
discontinued. BLS component indexes will be used to measure price
changes for these and other input items. Feeder livestock price surveys
will continue quarterly.
(8) Separate prices paid indexes for crop and livestock farms will
be computed and published.
(9) The 1910-14=100 price indexes required by statute (7 U.S.C.
1301(a)(1)(c)) for computing parity prices will be determined based on
the changes in the new 1990-92=100 indexes.
Beginning in January 1995, the new 1990-92 indexes will be
published monthly in Agricultural Prices for prices received and
quarterly for prices paid. The new 1990-92 based indexes will be
constructed back to 1975. The revised 1910-14 indexes and the new 1990-
92 indexes covering the 1975-93 period will be published in a separate
release by the end of January 1995. The old 1977 indexes, except for
the fresh market fruit and vegetable and seasonally adjusted prices
received indexes, will be available upon request during 1995 but
discontinued thereafter. The fresh market fruit and vegetable indexes
and the seasonally adjusted indexes now published for fresh market
fruits, fresh market vegetables, potatoes and dry beans, dairy
products, and poultry and eggs will be discontinued in January 1995.
Prices paid estimates for building materials, farm and motor supplies,
and new autos and trucks will no longer be published.
The changes in the construction of the indexes will simplify
updating the component items and reference periods while maintaining
appropriate weights. The new index procedures will provide long-term
comparability in computing future index numbers, reduce respondent
burden, and better utilize existing Government data. The overall
changes will not have a significant effect on the levels of the prices
received and prices paid indexes, and, therefore, will have very little
effect on the levels of parity prices.
Done in Washington, D.C., this 24th day of October 1994.
Rich Allen,
Acting Administrator.
[FR Doc. 94-26767 Filed 10-27-94; 8:45 am]
BILLING CODE 3410-20-P
