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<br />00293<1 <br /> <br />-13 <br /> <br />used in this system is considered to be a partial or constrained efficiency <br /> <br />model. Cropping patterns shifts are controlled in 9rder to approximate the <br />most likely adjustments that would take place as a result of changes in <br />production cost, yields, and the national framework of production requirements. <br /> <br />In general, these constraints are intended to reflect agricultural immobility, <br /> <br />and the institutional impediments within the economy which do not permit the <br /> <br />theory of comparative advantage to freely operate. <br /> <br />The third major section of the N1RAP System is the economic interpreta- <br /> <br />tions section. National agricultural income and employment totals were <br /> <br />computed from the projected national framework of production requirements, <br /> <br />and estimates of production at the LRG level were utilized to obtain initial <br /> <br />values for employment and earnings at the regional level. These initial <br /> <br />projected values were then adjusted based on an analysis of historical data <br /> <br />provided by OBE. Cross checks for reasonableness were made of apparent <br /> <br />regional trends in employment and agricultural wage rates among regions, and <br /> <br />adjustments are reflected in the draft report. In deriving agricultural <br /> <br />earnings the intermediate values of gross income--which represents the sum of <br /> <br />cash receipts, the value of home consumption of products produced on the farm, <br /> <br />and the rental value of farm dwellings, and income--which represents gross <br /> <br />inco~e less estimates of current operating expenses, are calculated. Agri- <br /> <br />cultural earnings thereby represents the sum of net income, plus income <br /> <br />accruing to hired labor, income earned by the agricultural services sector, <br /> <br />and secondary income which represents income from undetermined shifts in <br /> <br />prices, non-commodity support government programs, and other miscellaneous <br /> <br />factors. Estimates of income to the agricultural services sector was provided <br /> <br />by OBE. The Natural Resource Economics Division then developed agricultural <br /> <br />I~ <br /> <br />~l~~ <br /> <br />~~t <br /> <br />~~ <br /> <br />l~~~l <br /> <br />;.-:;/:;Lc; <br />,".:,,;:;.,"," <br />,;.-~:,:>,:-';- <br />~;::.>;~;;:.':' <br /> <br />~:.:~./:,::::- <br />\{/-,.-..- <br />. ".' .'~:. <br /> <br /> <br /> <br />~~1~.,~.;rf'II.'i~~~ilf~1I~~j:~j~ <br />