economic impact of crop production

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Mflyr

• April 16, 2020 15:25

Hello. I am hoping to estimate the economic contribution of hay production in a rural county in Oregon. We have estimated the total quantity of hay produced and the market price of hay. Our initial plan was to run the market value of hay produced as an industry sales event in IMPLAN 536 sector 10 (All other crop farming). However, I have learned that much of the hay produced in this region is not sold, but rather consumed on the farm by cattle. Can I still put the market value of hay produced in an industry sales change? I'm not sure if this sector assumes that some of the production is consumed and not sold.

I also have some data on variable expenses to grow the hay, but no other data related to direct effects (e.g. no employment or labor income or sales data), so I'm not sure if an analysis by parts is a good alternative. Thanks for your help!

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  Candi Clouse

  • April 16, 2020 21:01

  Hi there!

  You might consider using an Industry Contribution Analysis as your Event type in that you say you want to see the contribution in your county. We recommend this for anything that is more than 50% of the total production in a Region.

  If you want to use Analysis by Parts, remember Output represents sales (+/- inventory) for most Industries. In that some of it wasn't sold, it wouldn't be in the Output for Industry 10 (All other crop farming). The best way would be to model the expenses that go into the production of the hay (Intermediate Inputs). You could use the Intermediate Inputs (as Industry Spending Pattern or Bill of Goods) and the Study Area Data to estimate the associated Labor Income for the Industry.

  The Regions Industry Detail gives you values for Output, EC, PI, OPI, and TOPI

  Output = Intermediate Inputs + EC, PI, OPI, and TOPI

  Subtract Output - EC - PI - OPI - TOPI = Intermediate Inputs

  Now you can find the percentage that each of EC, PI, OPI, TOPI, and Intermediate Inputs is to Output. Using your Value for Intermediate Inputs, you can approximate the Value for EC (and PI if you want). Then you can use this as a Labor Income Event.

  Let me know if you have further questions!

   

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