What is considered FF&E on a farm?
I am analyzing a olive producing farm. Can the purchase of the olive trees be counted as FF&E in an analysis? Or another example would be a dairy farm…could you count the purchases of the cows as a FF&E item?
Thank you
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IMPLAN SupportHi Terri. We would tend to consider the purchase of olive trees as a production input and not FF&E. However, if you know that the olive trees were purchased from a local nursery, then you could assign these expenditures to Greenhouse, nursery, and floriculture production (sector 6) in your model since they represent income to the local nursery/supplier. If the olive trees were purchased from a nursery not located within your study area, then the majority of the purchases would leak out, with only a small potential amount of impact locally resulting from potential wholesale/distribution and transportation of the trees. If you know that the trees were purchased from a local nursery, then you can model those purchases in sector 6. Otherwise, we would recommend that you only mention those purchases in your report, but not try to tie any economic impacts to them because of the leakage factor. We would also offer similar suggestions for the dairy farm as for the olive production farm. Unless you know that the dairy cows were purchased from an existing dairy operation or producer in your study region, we would suggest mentioning those purchases in your report and not talk about economic impact. Please let us know if you have any additional questions, and we hope this helps.0
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