California Vegetable Proprietor Income Ratio

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libbyochr

• November 25, 2015 19:48

I have been working with agricultural sectors in a number of counties in Northern California. The proprietor income and other property type income for vegetable and orchard production is very high around 40% and 30% respectively. It is resulting in about 90 cents of every dollar spent in agriculture staying within in the county. This seems very high. Can anyone shed any light on this issue?

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  IMPLAN Support

  • November 30, 2015 20:06

  Hi Libby! Thank you for your forum post. So that I can assist, could you tell me the data year you are building this model on, 2013? Thanks!

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  libbyochr

  • December 09, 2015 19:10

  I am working with data from 2013, looking at El Dorado, Placer, Sacramento, and Yolo counties. The proprietor income appears to be in line with previous years but the other property type income made a drastic jump from earlier years. In 2010 other property type income for vegetable production was $13,167,623.52 (about 6.83% of total expenses), in 2012 other property type income dropped down to $-1,878,868.82. In 2013, that number shot up to $49,681,037.90 (about 32.84% of total expenses). If you could shed any light on how these numbers were calculated and clarification would be greatly appreciated. Thank you very much, Libby

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  IMPLAN Support

  • December 14, 2015 13:59

  Hi Libby, To get our OPI estimates, we start with raw Gross Operating Surplus (which is PI + OPI) data from the BEA, which comes to us at the state level, lagged a year, and in less sector detail than IMPLAN sectoring. To get county-level OPI from this, we first have to project the raw data (based on EC and Employment growth) and split amongst the IMPLAN sectors that belong to a given BEA sector (based on the latest BEA Benchmark), then we subtract out that sector's PI from the GOS estimate, with the leftover being OPI. The raw BEA data for the BEA's "Crop" sector does show a good jump between 2011 and 2012, which jibes with what you are seeing in your models: 2010 (used for 2011 IMPLAN data): 16,282 2011 (used for 2012 IMPLAN data): 16,619 2012 (used for 2013 IMPLAN data): 21,279 Also, since PI can vary drastically from year to year, this will affect OPI since OPI = GOS - PI. We hope this is helpful; please let us know if we can provide you any additional information.

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