Description
Return localPrice-referencePrice and multiply by quantity for contribution.
Agricultural economic summaries distinguish physical quantities, per-area yields, prices, covariance and index weights. One revenue or weighted-price contribution is not a complete index, profit account or estimated demand response. Nominal and imputed values require a consistent currency, quantity and period basis.
Return localPrice-referencePrice and multiply by quantity for contribution.
When to use this tool
Use Crop Basis Spread Contribution when checking the stated supplied value, index-weight or economic-response contribution.
How to use the tool and how it works
- Enter localPrice, referencePrice, quantity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read basis, contribution. Use the output convention below.
Require nonnegative quantity. Return localPrice-referencePrice and multiply by quantity for contribution.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| localPrice | Local Price | Required. Finite number. |
| referencePrice | Reference Price | Required. Finite number. |
| quantity | Quantity | Required. Finite number; minimum 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| basis | Basis | Required. Finite number. |
| contribution | Contribution | Required. Finite number. |
{
"input": {
"localPrice": 180,
"referencePrice": 200,
"quantity": 5
},
"output": {
"basis": -20,
"contribution": -100
}
}Limitations and assumptions
- Use compatible price/currency/delivery bases; supplied signed prices do not establish a trade opportunity or actual contract settlement.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use verified farm/market data and a complete appropriate accounting or statistical model for economic estimates and decisions.
References
Similar or alternative tools
- Livestock Feed Contract Basis Gap
Observed basis=local-reference price, basis gap=observed-contractedBasis and valueGap=gap*quantity.
- Support Price Reference Wedge
Return suppliedSupportPrice-referencePrice as a signed price wedge, using the same currency and quantity basis.