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October 1, 2015
USDA METSS Project
Aggregation level: Weighted averages of the PPP of the product groups where weights are the
expenditures on the product groups as established in national accounts
The basket of goods used in the estimation of the PPP is a sample of goods and services used in the
estimation of GDP. Final list is approximately 3,000 consumer goods and services, 30 government
occupations, 200 equipment and 15 construction projects. They also often generate a significant portion
of their domestic public revenues through imposed barriers to trade such as tariffs.
From the foregoing, the prevalence of poverty may be influenced by the changes in the prices of goods
in a country’s basket of goods when the assumption of zero transaction costs and absence of trade
barriers fail to hold. Most developing countries experience significant transaction costs in traded goods
because of their dependence on imports. The extent of the violation of the law of one price is
2
exacerbated by the proportion of consumption that is imported and changing foreign exchange situation
in the country.
Research Question
To what extent do macroeconomic conditions in a developing country influence the prevalence of
poverty? The macroeconomic conditions of interest are exchange rates and inflation, measured by the
consumer price index (CPI). For simplicity purposes, the research question ignores the non‐trivial effect
of population growth on the prevalence of poverty.
The question is important because the performance of intervention projects aimed at reducing poverty
may be adversely affected by inimical macroeconomic conditions over which the projects have no
control. Understanding and measuring the effect of these macroeconomic conditions allow project
managers to make the necessary adjustments to their achievements to help effectively monitor and
evaluate project performance.
Background
Suppose the perfect world where the real exchange rate is constant over time between two countries,
say U.S. and Ghana. Suppose also that a basket of goods produced in U.S. and Ghana were identical and
completely tradable. The law of one price would suggest that net of transportation costs, arbitrage
would insure that the dollar price of the basket is identical between Ghana and the U.S. – this is the
basic theory of PPP determination.
Let us begin with an illustration of the changing PPP measured as national currency per U.S. dollar in the
Euro Zone and the UK (Figure 1). Between 2009 and 2014, UK’s PPP has been increasing while the EU’s
has been declining. This implies that for people living in the UK needed a declining quantity of British
Pounds to purchase the same basket of goods as would be purchased in the U.S. for given price in U.S.
dollars while those living in the Euro Zone needed an increasing quantity of Euros. A declining PPP is,
therefore, an indicator of a worsening economic condition for residents in a particular country.
Let us define the real exchange rate, Q, as follows:
…
Summary Book - All Counties
Operator.............................................................................................71
Analysis Factors by Crop Acres ....................................................................................................72 … various kinds of livestock and crop income values are computed …
December 1, 1997
Section 2: Considering Cooperatives
to market their speciality crop? A primary
difference between … finalized. Purchasing various
insurance policies also protects the …
Conservation Reserve Program (CRP)
6
Crop Acres - 84 … 37.04 0.44
Seed / Other Crop Expense … 15.06 0.18
General Farm Insurance …
Conservation Reserve Program (CRP)
Number of Farms 14
Crop Acres 294
Acres Owned 0
Acres … Tax 0.1542.70
General Farm Insurance 2.32681.37
Conservation … Expenses 14.31$4,206.38
Misc Crop Expense 0.011.48
Direct …
Summary Book - All Counties
36-42
Crop Profit Center Analysis … various kinds of livestock and crop income values are computed … Income for other livestock and crop items is computed by the …
Summary Book - All Counties
Operator.............................................................................................59
Analysis Factors by Crop Acres ....................................................................................................60 … various kinds of livestock and crop income values are computed …
Summary Book - All Counties
28-31
Crop Profit Center Analysis … Payments Livestock Income Crop/Misc Income
5
Average … and Forage15 30,565
Other Crop16 3,208
Government Payments17 …
Summary Book - All Counties
May 1, 2018
Dear Farm Managers and Friends,
The 2017 ProfitLink Summary information processed farm financial records for participating Kansas Farm
Management Association, NW members from 17 counties in northwest Kansas; the map on page 3 shows the counties where
participating members farm and ranch. One hundred thirty‐five (135) farms were summarized and represent 54% of the 2017
KFMA, NW membership. The KFMA economists and staff express thanks to the farm families for their participation and
record keeping to be utilized in the summary. Additional appreciation is extended to the individuals at the KMAR‐105
Association for their help in accumulating the data.
Net farm income increased greatly in 2017 to $94,071 compared to the two low income years in 2015 and 2016.
Although the average net farm income was positive, many operations are still experiencing decreasing liquidity and carryover
debt. There is also a great variance of income across farms in the association and page 19 has a comparison of farms by net
farm income quartile groups. The bottom 25% (33 farms) averaged ‐$146,201 net farm income (loss), while the top 25% (34
farms) averaged $450,929 net farm income. Value of farm production increased 16.8% from an average of $760,276 in 2016
to an average of $913,916 in 2017. Total expense increased 7.6% from an average of $757,379 in 2016 to $819,845 in 2017.
Crop yields were average to a …
Summary Book - All Counties
16
Crop Value and Cost Comparison … 25
Crop Value and Cost Trends, 10 … 42
Non-irrigated Analysis Crop Yields, 10-Year Trend …