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Overview of Farmer Terms of Trade February 2020

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Release Date	:	April 1, 2020
File Size	:	0.29 MB

Abstract

Starting January 2020, there was a change in the base year in calculating the Prices Received by Farmers Index (It) and Prices Paid by Farmer Index (Ib) from base year 2012 = 100 to base year 2018 = 100. Both types of indexes are important components in calculating Farmer Exchange Rates (NTP). This basic year change was made to adjust changes in production patterns, production costs, and consumption of agricultural households in rural areas. In the base year 2018 = 100 there is anincreased coverage of the number of commodities both in the It and Ib commodity packages compared to the base year 2012 = 100.

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