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Agricultural Parity: Historical Review and Alternative Calculations

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  • Teigen, Lloyd D.

Abstract

Changes in the structure of agriculture and income distribution among producers make parity prices obsolete indicators of farmer well-being. This report chronicles the history of parity, surveys critiques of parity, and discusses changes that might reduce price distortions resulting from the use of the parity concept. Possible changes include adjusting the parity price formula by redefining base period prices and treating interest and taxes differently. New standards of equity, including cost of production, marginal social cost, and parity income, are examined.

Suggested Citation

  • Teigen, Lloyd D., 1987. "Agricultural Parity: Historical Review and Alternative Calculations," Agricultural Economic Reports 308029, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:308029
    DOI: 10.22004/ag.econ.308029
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    References listed on IDEAS

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    Cited by:

    1. Teigen, Lloyd D., 1988. "Agricultural Policy, Technology Adoption, and Farm Structure," Staff Reports 278118, United States Department of Agriculture, Economic Research Service.
    2. Weimar, Mark R. & Blayney, Don P., 1994. "Landmarks in the U.S. Dairy Industry," Agricultural Information Bulletins 309709, United States Department of Agriculture, Economic Research Service.
    3. Powers, Nicholas J., 1990. "Federal Marketing Orders for Fruits, Vegetables, Nuts, and Specialty Crops," Agricultural Economic Reports 308137, United States Department of Agriculture, Economic Research Service.

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