Analysis-by-parts - decrease in operating losses

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    IMPLAN Support
    Hi Burk, Are you assuming that the losses are not made up by insurance or subsidization. This is important to consider, because if the farmer is actually seeing compensatory payments from insurance or subsidizes or those would net out some of the positive affects of accepting payments to let the land lie fallow. So the operating loss less subsidization or crop insurance would be the actual positive benefit. In this case you could map any remaining positive income to Proprietor Income or you could use the Households 75-100k Spending Pattern suggested in David's post with the understanding that all tax dollars and savings need to be stripped from the Activity Level before you run the spending pattern. Also because the farmer no longer is making any purchases of goods and services, it is important to note that this aspect of operational costs is a loss to the economy, because the farmer, by letting the land go fallow, is no longer purchasing the local inputs that he was before when he was operating a loss, but still had to cover those payments.
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    Burkett.huey@coloradocollege.edu
    Thank you for your help! My model is not taking into account crop insurance, and I am seeing this effect before I insert a lease payment. My preliminary results seem to fallow your structure. I am seeing negative direct effect and indirect effects from fallowing and a positive induced effect. Thank you for your help! Burk
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    Burkett.huey@coloradocollege.edu
    My model is not taking into account crop insurance, and I am seeing this effect before I insert a lease payment. My preliminary results seem to fallow your structure. I am seeing negative direct effect and indirect effects from fallowing and a positive induced effect. Thank you for your help! Burk
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    Burkett.huey@coloradocollege.edu
    Whoops. accidentally double posted
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