Crop Enterprise Budget

Comments

9 comments

  • Official comment
    Avatar
    Candi Clouse, PhD

    Hello - 

    First you will head to the ribbon at the top and click Customize > Study Area Data

    You will find the Rename Industry at the top of this page.

    Comment actions Permalink
  • Avatar
    maria_lucas

    Hello,

    Guidelines for make the necessary modifications to an IMPLAN Pro model to split out an agriculture industry are listed below. Alfalfa production is captured in the greenhouse industry (industry 6 in the 546 scheme) and the all other crop farming industry for alfalfa hay and seed farming (industry 10 in the 546 scheme). An alternative to the approach below is to simply analyze the Alfalfa industry using Analysis-by-Parts: https://implanhelp.zendesk.com/hc/en-us/articles/115009713208-IMPLAN-Pro-Analysis-by-Parts-Using-an-Imported-Industry-Spending-Pattern

    ________________________________________________________________________

    The best way to create a new sector in IMPLAN is to "take over" another sector.  Using the example of creating an Irrigated Grains sector:

    1. Find a sector with $0 output and rename it using the "Rename Industry" option just above the Industry list.
    2. Via Customize>Study Area Data, subtract new Irrigated Grain sector’s Output from the parent sector (the Grain Farming sector in this case) and put into new sector. Ditto for Employment and all components of Value-added (in same proportion as the change in Output, unless you have more detailed information on differing Employee requirements for the new sector).
    3. Import the parent sector's production function into the new industry using the Activity Library. Edit the production function for the new sector using crop enterprise budgets. Absorption coefficient = proportion of every dollar spent that is spent on that particular input. Includes intermediate expenditures but does not include VA (wages, proprietor’s income, profit, taxes) so does not sum to 1.
    4. Edit byproducts for the new sector to match the parent sector to make sure you get correct purchases from it and it is selling the appropriate commodities. 

    NOTE: After creating a new industry in this manner, it will not affect other industries' demand for the new sector. For example, let's say that the sector we "took over" is the Sugar Beet Farming sector. Now suppose that there is a food processing industry in our study area that imports sugar beets from outside our region. Even though we have taken over the Sugar Beet Farming industry in our region and have given it a positive Output level, IMPLAN will not mistakenly think that the food processing industry is going to make purchases from the newly-created industry, mistakenly believing that it is the Sugar Beet industry. Since we have modified the by-products matrix, the industry does not produce sugar beets, so no one who wants sugar beets will buy them from the newly created industry. If you tell the by-products matrix that the industry only makes grain, then only those who demand grain will buy from that industry. 

    NOTE: Since the TOTAL grain output is still the same (the production has been split between 2 sectors but the sum of output of those to subsectors equals the previous total of the sector before it was split),  the RPC for grain does not need to be adjusted. However, if we were to introduce a brand new sector with new output, we would need to adjust the RPC to reflect the higher level of supply. To do this:

    1. After giving the new sector output and rebuilding the model, go to File > User Preferences > Social Accounts and select "Econometric RPC"
    2. Re-construct the multipliers (Options > Construct > Multipliers)
    3. Take note of the RPC for the commodity that is produced by the new sector.
    4. Go back to File > User Preferences > Social Accounts and select "Tradeflow Model"
    5. Re-construct the multipliers (Options > Construct > Multipliers)
    6. Edit the RPC for the commodity that is produced by the new sector to the value noted in step 3. This way, all the RPCs are calculated using the tradeflow method, except for the new sector, which will not have tradeflow data associated with it and will need the econometric approach.

    Thank you,
    IMPLAN Support

    0
    Comment actions Permalink
  • Avatar
    coachmoke

    Thank you for the help! I am having difficulty finding the "rename industry" and "Customize>Study Area Data" tabs. I've looked in the region information tab and in the preferences drop down.  I don't see them anywhere. Could you provide screenshots or further instructions? 

    0
    Comment actions Permalink
  • Avatar
    maria_lucas

    Hello, 

    If you are not seeing the options in the screenshot below, be sure to enable advanced modeling: https://implanhelp.zendesk.com/hc/en-us/articles/115009713488-IMPLAN-Pro-Enable-Advanced-Modeling

     

     

    Best, 
    Maria

    0
    Comment actions Permalink
  • Avatar
    coachmoke

    Hi Maria and Candi -

    Your responses are very helpful.

    What version of IMPLAN are you using.

    My ribbon only has: File   Options   Analyze   Explore  Help

    It does not have a customize tab.

    I just download IMPLAN 3.  Is there a different version I should download?

    Thanks,

    Mark

     

     

    0
    Comment actions Permalink
  • Avatar
    Brian Barlow

    Hello Mark,

    It sounds like you may not have the Advanced Features enabled within IMPLAN Pro yet. You can find these options under File > User Preferences. You can also see more detail about this HERE

    Thank you,

    - Brian 

    0
    Comment actions Permalink
  • Avatar
    coachmoke

    Greetings -

    Your responses have all been helpful.  And quick!

    I am still working on my converting my crop enterprise budgets into IMPLAN industries.

    Question: Would an activites like "plowing" and "harvesting" which is done with equipment owned by the farmer be attributed to that industry?  That is if the multiplier  from the crop enterprise budget for "harvesting" for 2 -grain farming is 0.072 - that would be attributed to 2-grain farming, since it is an on-farm expenditure?

    Many thanks,

    Mark

    0
    Comment actions Permalink
  • Avatar
    coachmoke

    Greetings -

    I am in IMPLAN Pro.  Per the instructions above, I am trying to access the activity library under "Analyze" - "Stepup Activities".  

    Nothing is highlighted under "Analyze". Everything else is, i.e., all tabs under: Model, Explore and Customize.

    Thanks,

    Mark

    0
    Comment actions Permalink
  • Avatar
    maria_lucas

    Hi Mark,

    Regarding your question on plowing and harvesting, industry 19 (support activities for ag and forestry) is where these types of labor services (among others) appear. Naics Codes 115113 and 115112 both map to IMPLAN industry 19 and include "Grain, machine harvesting" and "Plowing", respectively.  However, if you were to use industry 19 for this expense, that implies that the workers who conduct these activities are contractors to the farm rather than employed by the farm.  IF that is the case, then I definitely support attributing this to industry 19!  If that is not the case, and these folks are employees of the grain farm, then this is just a labor cost and would be part of Employee Compensation in industry 2 rather than Intermediate Expenditures (IE), as I see it.

    It doesn't matter who owns the equipment since that is capital and not part of IE; the main consideration with that is that whichever industry owns the equipment (industry 2 in this case) would bear the maintenance and repair costs for the equipment, which indeed is part of IE, so you will just want to make sure that your budget for industry 2 includes such M&R expenditures.  Turns out that industry 19 does not spend anything on this type of M&R (commodity 3515) so there will be no double-counting of 3515 if you include those expenses in your grain farming budget while also using commodity 3019 for the harvesting and plowing services. 

    To access the Activity Library, you can choose "Import" from the Activity Options at top of the Activities Setup screen (see screenshot). Are you able to click into "Setup Activities"? What is the Region and Data Year of the model you are working in? 
    Thank you,
    Maria 

    0
    Comment actions Permalink

Please sign in to leave a comment.