Analysis - by -Parts

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    IMPLAN Support
    Hello Jason, In IMPLAN, modeling from an Industry Sector implies that local production is occurring. In this case, since the Sector does not exist in IMPLAN it sounds like you are looking at sales of tree nuts, but the tree nuts themselves are grown in another county. There are a couple of things to consider. If the production is not in the county, likely the transportation is done by the farmer and thus those costs belong primarily to another county. Likewise, the farmer probably takes his sales back to his county as income spent in his region. Thus, relative to your county, the only impact of non-local production is perhaps the fees paid at the farmer's market and the taxes associated to their sales. If you wanted to make an estimation of the local taxes, the best way to model this would be to choose the retail Sector that has the most similar tax rates (we would presume grocery (324)) and run the sales through the Sector as Gross Retail Sales (the default option). You would then consider just the tax impacts as the operations associated to the grocery store activity would not be appropriate since production, transport, 'processing' and payroll associated to the farmers market for these non-locally produced items are likely going back to the county where the products are grown/manufactured. Hope this helps, and please let us know if you have any additional questions.
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    jatroendle
    That makes sense what you shared. This goes back to the farmers markets and if we know that they do produce pecans, lotions, etc. how should we go about treating it, knowing the impact should stay in the county? For example we also have sector 6, 13, 54, 65, 66, 69 that all appear as not present in the county.
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    IMPLAN Support
    Hi Jason, In IMPLAN, modeling from an Industry Sector implies that local production is occurring. In this case, since the Sector does not exist in IMPLAN it sounds like you are looking at sales of tree nuts, but the tree nuts themselves are grown in another county. There are a couple of things to consider. If the production is not in the county, likely the transportation is done by the farmer and thus those costs belong primarily to another county. Likewise, the farmer probably takes his sales back to his county as income spent in his region. Thus, relative to your county, the only impact of non-local production is perhaps the fees paid at the farmer's market and the taxes associated to their sales. If you wanted to make an estimation of the local taxes, the best way to model this would be to choose the retail Sector that has the most similar tax rates (we would presume grocery (324)) and run the sales through the Sector as Gross Retail Sales (the default option). You would then consider just the tax impacts as the operations associated to the grocery store activity would not be appropriate since production, transport, 'processing' and payroll associated to the farmers market for these non-locally produced items are likely going back to the county where the products are grown/manufactured. Thanks.
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    jatroendle
    Correct and thank you for this answer. I understand what Implan is doing when that industry is present in the county and when it is not I should run it through retail as the raw goods and the profits from the sale are being made outside of the county. My question stems from the fact that I know the production IS happening in the county because I have talked to the producer themselves and the sector is not present in the county. That is where my question comes from and doing the analysis by parts.
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    IMPLAN Support
    Hi Jason. The full value of sales is the appropriate value for Activity Level, because the Sum of Event Values for the spending pattern is less than 1.0. As regards the Labor Income value, if you don't have a value for Proprietor Income and/or Employment Compensation to use in the Labor Income Change you can use the ratios for the national data to estimate a compensation value. The Customize>Study Area Data screen will show the national average Employment Compensation and Proprietor Income for that Industry in the U.S. at a per worker level. You can multiply these values by your known (or IMPLAN estimated) Employment values to determine the Employment Compensation and Proprietor Income values in your Model. Ultimately though, since you have a relationship with the vendor, the ideal situation would be to get their actual values. If you don't mind our asking, if you could also find out what NAICS code they use and let us know that would be great. Our data should capture all federally reported businesses, and since we are always looking to verify and improve we would love to know if we are missing something. Thanks.
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