Description
Compare supplied output-price and input-price indices.
Farm economic terms require explicit cost scope, subsidy treatment, price-index bases, moisture conventions and period rates. A partial input cost per output differs from total economic cost, while an insurance scenario excludes unsupplied policy limits. A nominal margin is conditional on supplied amounts and assumptions.
Compare supplied output-price and input-price indices.
When to use this tool
Use Output Price Input Parity Ratio when you already have outputPriceIndex, inputPriceIndex and need to compare supplied output-price and input-price indices.
How to use the tool and how it works
- Enter outputPriceIndex, inputPriceIndex. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read parityRatio, parityPercent. Use the output convention below.
Require output index>=0 and input index>0; return output/input and 100*output/input.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| outputPriceIndex | Output Price Index | Required. Finite number; minimum 0. |
| inputPriceIndex | Input Price Index | Required. Finite number; strictly above 0. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| parityRatio | Parity Ratio | Required. Finite number. |
| parityPercent | Parity Percent | Required. Finite number. |
{
"input": {
"outputPriceIndex": 120,
"inputPriceIndex": 150
},
"output": {
"parityRatio": 0.8,
"parityPercent": 80
}
}Limitations and assumptions
- Indices need compatible base periods and coverage. This constructed price ratio does not establish purchasing power, profitability, farm terms or a causal policy effect.
- 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
Reconcile actual farm accounts, contracts, policy terms and forecasts. Use complete cost, risk and valuation methods when local per-unit terms or scenarios cannot establish profitability, obligations or appropriate financial decisions.
References
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