[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the indexes have become outdated as the mix of commodities farmers 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