parity

Equality in the present purchasing power of a unit (bushel, cwt.) of a product compared with its purchasing power during the period 1910-14. Parity price for any commodity equals its 10-year average price multiplied by the ratio of the current Parity Index compared to the 10-year average of Prices Received Index. The Parity Index reflects prices paid by farmers for items of production and family living, including interest, taxes, and wage rates. Both Parity Index and Prices Received Index are expressed on a base of 1910-14 equaling 100. The near threefold gains in farm productivity are not reflected in parity prices.

Authorization Path: 1.2.1.2.12.0