Negative OPI and Tax on Production and Imports

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LAE6731
Hello, Sorry to be a bother but my boss wants more clarification on some of your study area data values. I'm looking at time series data for Arkansas from 2010-2014 and noticed that some of the agriculture sectors show negative values for OPI and tax on production and imports. I'm wondering if you could offer an explanation as to why this might occur, specifically in ag sectors? We are seeing highly negative tax values for grain farming in particular. Could this be due to subsidies? I also noticed that OPI values for oilseed farming and poultry production are markedly higher than the other ag sectors. I've read the definitions on your website for OPI, but I'm not sure why it would be consistently high for oilseed and poultry but show drastic fluctuations in the grain farming sector? See attached document.
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    IMPLAN Support
    Ashley, The entire Time Series data set was benchmarked to the latest (2007) BEA Benchmark, so it is the same as the 2013 and 2014 data in terms of trends, and the negative values are indeed a function of TOPI being net of subsidies. The annual data we collect for OPI and TOPI also come from the BEA but they are at a very aggregate sector level (there is only one overall “Farm” sector) so we have to distribute this annual figure to the 14 IMPLAN farm sectors based on ratios from the BEA Benchmark (which happens to have negative TOPI for Grain Farming). Regarding OPI, while the BEA Benchmark helps us disaggregate the annual BEA Gross Operating Surplus (GOS) data amongst the various farm sectors, it does not help us separate GOS into its component parts – Proprietor Income and OPI. To do that, we use our annual Proprietor Income estimates and subtract that from GOS to get OPI. It looks like there are about twice as many proprietors in Grain Farming than in Oilseeds and in Poultry (the exact ratio depending on the year of course); given that PI can fluctuate widely year to year, this is probably largely the cause of the higher degree of fluctuation in OPI for Grain Farming vs. Oilseeds and Poultry. Regards, IMPLAN Staff
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