Overview
The Economic Research Service (ERS) annually calculates
"normalized prices," which smooth out the effects of shortrun
seasonal or cyclical variation, for key agricultural inputs and
outputs. These normalized prices are used by the U.S. Army Corps of
Engineers and other Federal agencies to evaluate the benefits of
projects affecting agriculture. Since 1993, ERS has calculated
these prices based on 5-year lagged averages of actual market
prices (e.g., an average of 2006-2010 market prices is used to
calculate 2012 normalized prices). State-level normalized prices
for 2012 were calculated by multiplying the national-level
normalized prices by the average ratios of the State-level market
prices to the national market prices for 2008-2010.