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Tag: Are interfarm sales included in farm cash receipts estimates

what are farm cash receipts

what are farm cash receipts插图

Farm cash receipts represent thecash income received from the sale of agricultural commodities as well as direct program payments made to support or subsidize the agriculture sector. The primary reason for compiling farm cash receipts is to estimate, on a provincial basis, the agriculture sector’s contribution to gross domestic product.

What are the different types of farm receipts?

Farm cash receipts include revenues from the sale of agricultural commodities, program payments from government agencies, and payments from private crop and livestock insurance programs. Receipts are recorded in the calendar year when the money is paid to farmers. Market receipts are farm cash receipts minus program payments.

Is there any imputation done for the farm cash receipts?

No imputation is done for this survey. Farm cash receipts include revenues from the sale of agricultural commodities, program payments from government agencies, and payments from private crop and livestock insurance programs. Receipts are recorded in the calendar year when the money is paid to farmers.

What are cash receipts?

Since cash receipts are estimated on a cash basis, any amounts received after the sale of a product, whether in the form of a final or an adjustment payment, will be shown when the cash is received rather than when it was earned.

Are inter-farm sales included in farm cash receipts estimates?

Consequently, all inter-farm sales within a province are excluded from farm cash receipts estimates, as their inclusion would result in double counting. It should be noted, however, that farm-to-farm sales between provinces are included as are all sales outside the sector. All Canadian agriculture operations as defined by the Census of Agriculture.

Why Is a New Cash Receipts Estimation Method Necessary?

Each August, ERS produces estimates of the prior year’s cash receipts—the cash income the farm sector receives from commodity sales. ERS data draw heavily on sales data collected and released to the public by USDA’s National Agricultural Statistics Service (NASS). However, to protect the confidentiality of individual survey respondents, NASS does not publish detailed sales data for all commodities in all States. When these data cannot be published separately for a particular State, NASS maintains confidentiality by combining the data with other unpublished State-level data in an "Other States" grouping. This reduces the amount of commodity detail available and limits ERS reporting to approximately 60 percent of each State’s cash receipts at the individual commodity level. Using this method, it is only possible to publish detailed data on hogs, milk, broilers, rice, wheat, corn, and tobacco. As shown in the annual cash receipts by commodity (condensed), U.S. and States table, the remainder of each State’s cash receipts are reported only at an aggregated level.

How does ERS work with NASS?

To overcome data limitations and increase the level of published commodity detail, ERS worked with NASS to develop an approach that allows ERS to estimate State-level cash receipts from the "Other States" grouping reported by NASS . ERS and NASS determined that it was important to adopt a simple and transparent method that is consistent with other aspects of the Farm Income and Wealth Statistics data product. This method builds on a procedure that is already in place to allocate NASS published regional production expense data to individual States using Census of Agriculture expense data. The major additional contribution over the expense method is the introduction of an algorithm to automatically select a distribution variable that most closely approximates cash receipts among several candidates from Census of Agriculture data. This results in the NASS Other States cash receipts (i.e., sales) data allocated to the underlying States by the best available commodity data on sales, production, inventory, or number of producers available from the Census of Agriculture (COA). To ensure transparency and reproducibility, the approach relies on publicly available information reported in NASS Quickstats.

Why is state level commodity information important?

Detailed State-level commodity information allows farmers, agribusinesses, lenders, policymakers, and the general public to analyze State-level commodity trends. For example, soybean cash receipts—the value of which is the second largest across all U.S. crops—had to be combined with other oil crops to ensure the confidentiality of producers of other oil crops. Using ERS’ method detailed below, all soybean cash receipts data (over $41 billion, on average, from 2008-14) could be separately reported for each producing State, rather than aggregated into a broader category (oil crops).

What percentage of cash receipts are published at commodity level?

The method allows for substantially greater publishable detail—up to 94 percent of the total value of State cash receipts are now published at an individual commodity level, with the remainder included in the "all other animals and products" and "miscellaneous crops" categories. Originally, only 60 percent of the total value of each State’s cash receipts was reported.

Does ERS publish sales data?

ERS data draw heavily on sales data collected and released to the public by USDA’s National Agricultural Statistics Service (NASS). However, to protect the confidentiality of individual survey respondents, NASS does not publish detailed sales data for all commodities in all States.

Can you use sales or production dollar values for each commodity?

Ideally, it would be possible to use sales or production dollar values for each commodity. However, some of the COA sales or production values are also unpublished. As a result, additional variables are considered including inventory and number of operations.

Why is a cash receipt voucher important?

The issuance of a cash receipt voucher enforces the issuer to maintain the records correctly, and it reduces the chances of misappropriation. Cash receipt is one of the primary documents maintained by every organization.

What is a cash receipt?

In simple terms, a cash receipt is the official document of receipt of cash from the external sources like receipts from debtors, receipt from a bank, and receipt as loan from third party etc. and in order to formalize the transaction, cash receipts are generated and can be presented as the proof of amount receivable.

Why is it important to keep a cash receipt?

A business organization has to perform many functions like management of inventory, investors, debtors etc., for all the management, cash is primarily used in business. Hence it is necessary to make the record of cash so as to verify and present the true picture of the business. The cash transactions in the business occur in the form of receipts and payment. Example of cash receipts are receipts from debtors, bank etc. Against every cash receipt, the business organization generates a formal document called ‘cash receipt’ to record the transaction. As cash is an important item for every business, the chances of teaming & leading and other frauds become the more. Hence maintenance of records in the form of cash receipt is very important and necessary. The pro forma for cash receipts vary from organization to organization. Some prefer detailed records, while others prefer the summary receipts.

What are some examples of cash receipts?

Example of cash receipts are receipts from debtors, bank etc. Against every cash receipt, the business organization generates a formal document called ‘cash receipt’ to record the transaction. As cash is an important item for every business, the chances of teaming & leading and other frauds become the more. Hence maintenance of records in the form …

What is the purpose of receiving cash?

The purpose of receiving the cash, i.e. whether cash is received against a loan or against sales, etc., with details to be written to keep track of various records.

Can cash receipts be traced?

With the issuance of cash receipt and payment voucher and deflection can be traced.

Is a cash receipt enforceable?

Legally Enforceable document: Cash receipt is the formal document; hence it can be presented as proof when the law demands . Hence it is a legally enforceable document. Issued for Maintenance of records: Cash Receipts are generated to maintain the cash records to prevent deflection and other cash-related misappropriations.