PURPOSE

The Prices Received surveys provide data to estimate prices received by farmers and ranchers for crop and livestock commodities. The survey data are used for determining prices received indexes and parity prices. The grain prices survey provides data to compute monthly marketings.

COVERAGE

The prices received program includes all commodities in the NASS estimating program. For the major grains, oilseeds, and pulse crops, a survey is conducted monthly in the top producing states. Prices for the major livestock species are estimated monthly. Market year averages prices are derived from these data. Market year average prices are estimated for fruit, vegetables, and other minor commodities. Program coverage for prices received is customized for every state.

CONTENT

The Prices Received survey for grains, oilseeds, and pulse crops obtains the total quantity purchased and the total dollars paid for each commodity for the entire preceding month, plus a current mid-month price. For livestock, number of head sold, total liveweight, and total dollars paid to producers for the preceding month are collected. For some of the fruit and vegetables, data are collected for fresh market and processing. For commodities done annually, producers and processors are asked to provide average price. Administrative data, such as market order or Agricultural Marketing Service reports, are obtained to supplement NASS sources. These data are sufficient for computing the indexes of prices received and parity prices as required by law.

FREQUENCY

The Prices Received survey is conducted monthly for grains, oilseeds, pulse crops, and major livestock. Prices for the other commodities are collected annually.

METHODS

The target populations for the Prices Received survey are specific to each commodity area. Grain, oilseed, and pulse crop price information is obtained from about 2,600 grain elevators and buyers. Livestock prices are collected from buyers, auctions, stockyards and packing plants that buy directly from producers. Fruit and vegetable price information are collected from State boards, marketing cooperatives and grower associations, processors, canneries, and producers. Cotton prices are collected from 220 buyers. Rice prices are collected from all known (about 75) rice buyers. Agricultural Marketing Service price data are used to supplement NASS survey data.

The first contact with a sampled firm is generally done via personal interview. The NASS price program is explained to the respondent. After this interview, questionnaires are mailed or data are collected by telephone. Telephone follow-up or follow-up visits are made as necessary to encourage response and to resolve any reporting difficulties.

The market year prices are derived by weighting monthly prices by monthly marketings. Prices received indexes are derived from these data. Parity prices are computed by dividing the average price of a commodity for the past ten years, adjusted for government support, by the overall average prices received index (1910-14=100) for the same 10 years, also adjusted for government support; and multiplying that ratio times the current prices paid index (1910-14=100).

PRODUCTS

The Agricultural Prices report is published on or near the last working day of each month. Approximately 65 farm commodities are included. An annual summary is released in July and includes some 130 farm commodities. In addition to U.S. prices, State prices are provided for commodities that, in the aggregate, account for 80 percent of U.S. marketings of that commodity. State prices weight to a U.S. price based upon each state’s volume of marketings.

Prices received indexes are computed for overall farm prices, all crops, all livestock, and twelve crop and livestock commodity groupings. These indexes are computed on a 1910-14=100 and 1990-92=100 basis. There are 44 commodities covered in the overall prices received index which account for about 90 percent of the marketings for all farm commodities.

USES

Estimates of prices are used by the NASS to determine the value of agricultural production. Estimates are used by the Economic Research Service (ERS) and Department of Commerce in the computation of commodity cash receipts and net farm income, a major component in the National Income Accounts. The Farm Service Agency (FSA) uses the data when determining counter cyclical and disaster payments while the Risk Management Agency (RMA) uses them for insurance programs. The Forest Service determines annual grazing fees for use of the National Forest System Lands. State governments use the data for land valuations and taxation purposes.

The Indexes of Price Received by farmers are used by many government agencies. The Federal Reserve Bank and ERS use the prices received indexes as a general measure of commodity price changes. Parity prices are used to establish and maintain Federal Market Orders. Calculation of parity prices follow provisions of the Agricultural Adjustment Act of 1938.

SPECIAL FEATURES

RELATED PROGRAMS

Prices Paid and Prices Paid Indexes