Land Conversion - Row Crop Agriculture to Prairie

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    jenny
    Hi Tony, All regions start with the national production function for a given industry, so you can make the industry exist in your region by giving it values for output, employment, and/or any of the value-added factors for which you have data. If you give these industry data elements values, then the industry will automatically have the default national production function (modified to fit the regional value-added to output ratio) and industry by-products. Note: after you make the changes (under Customize > Study Area Data), you will need to reconstruct the multipliers (Options > Construct > Multipliers). Note: making the hay sector exist in your region is not sufficient to allow other sectors to purchase hay locally - i.e., the RPC for hay will still be 0. You will need to either a) choose an appropriate RPC based on your local knowledge and edit it maually (Customize > Tradeflows) or b) set your settings to use the econometric RPC method, which adjusts RPCs based on local supply and demand (File > User Preferences > Social Accounts). You will need to reconstruct the multipliers after either of these changes. The study area data do not show per-acre values, but if you have output (i.e., revenues), you can edit the study area data for sector 2 and sector 10 to reflect the appropriate "per output" ratios (i.e., employment per output, employee compensation per output, etc.) based on your known values. IMPLAN will fill in the rest for you. Note: if you want to adjust intermediate expenditures, you will need to uncheck the "Lock" box. Again, you will need to reconstruct the multipliers after any edits. How I would suggest running this analysis is to create two Industry Change activities: one for the hegative impact on sector 2 and the other for the positive impact on sector 10. These two activities can then be run together as a single scenario, giving you the net impact (or you could run them separately and calculate the net impact yourself). There would be no need for an additional Labor Income Change, as the spending of farmer income would be included in the induced effects of this scenario.
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