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<br /> <br />65\ <br /> <br />Table 1. Labor and Proprietor <br />Income from Farming, Colorado <br />Counties, 1987 <br />The data in this table is from the <br />US, Department of Commerce <br />Regional Economic Information <br />System (REIS) (lfl, Note that the V,S, <br />Department of Commerce (DOC) <br />I'Farm Labor and Proprietors' Income" <br />used here differs from VSDA net farm <br />income, DOC estimates labor and <br />proprietor income from farming, <br />sometimes referred to as If earned <br />income," by adjusting VSDA deprecia- <br />tion estimates to a straight line <br />method (consistent with DOC esti- <br />mates of depreciation in other indus- <br />tries), subtracting the income of <br />corporate farms, and adding all farm <br />wages and salaries including cash and <br />pay-in-kind of farm labor and salaries <br />of officers of corporate farms. Be- <br />cause of the inclusion of farm wages, <br />estimated labor and proprietor income <br />from farming is larger and more stable <br />year to year than VSDA net farm <br />income, This DOC definition of farm <br />income is used throughout this report <br />to be comparable with nonfarm <br />sectors, <br />The order and grouping of <br />counties in Table I is according to the <br />importance of farm earnings to total <br />county income, Counties with over 20 <br />percent of their income from farming <br />are designated "farm dependent" This <br />designation is consistent with the <br />methodology developed by the V,S, <br />Department of Agriculture Cl and .2); <br />counties with at least 20 percent of <br />their income from a specific industry <br />have been found to be economically <br />"dependent" on that industry, Coun- <br />ties in the 10 to 20 percent range are <br />designated "farm important" in this <br />report, <br /> <br />, . , <br /> <br />Appendix B - Methodology 21 <br /> <br />Table 2. Labor and Proprietor <br />Income by Sector, Colorado <br />Counties, 1987 <br />Basic data for the Appendix A <br />tables on income and employment are <br />from US, Department of Commerce <br />Regional Economic Infonnation <br />System (REIS) (lfl and County <br />Business Patterns, 1987, Colorado <br />(ll), Agricultural related sectors were <br />compiled using rhe 1982 Standard <br />Industrial Classification (SIC) Code <br />industries, as described below, <br />Because of limitations on the <br />disclosure of individual establish- <br />ments, Department of Commerce <br />reports do not show county level data <br />for industries with one or two estab- <br />lishments or with less than 20 em- <br />ployees (less than 100 or less than <br />250 in some cases); however these <br />suppressed data are included in state <br />totals and the totals for all counties <br />suppressed can be determined by <br />subtracting the total of counties <br />shown from the state totaL This report <br />estimates income and employment in <br />suppressed counties by allocating the <br />total for all suppressed counties back <br />to individual counties based on the <br />relative size of larger and similiar <br />sector categories where county data is <br />shown, Except for the farm produc- <br />tion sector, most individual county <br />sector data of less than 100 employ- <br />ees and earnings of less than $1 <br />million are estimates unique to this <br />report, and not official Department of <br />Commerce numbers, Such esllmates <br />do not represent the actual employ- <br />ment and payroll for Individual <br />establishments In these counties, <br />Specific SIC industry codes <br />included in each sector shown in <br />Table 2 are as follows: <br />Agricu1turallnput Sector. Esti- <br />mated as the total labor and proprie- <br />tor income of industries in SIC codes <br />07-08-09 (Agricultural services, <br />forestry, fisheries); SIC 287 (Manufac- <br />turing agricultural chemicals); SIC 352 <br />(Manufacturing farm and garden <br />machinery); SIC 5083 (Wholesale farm <br />machinery and equipment); SIC 497 <br />(Irrigation systems); SIC 5083 (Whole- <br />sale farm machinery); SIC 5191 <br /> <br />(Wholesale farm supplies); SIC 613 <br />(Agricultural credit institutions); and <br />SIC 622 (Commodity contracts bro- <br />kers, dealers). <br />Production Sector. County farm <br />production sector earnings for 1987 <br />are from (lfl, <br />Processing and Marketing <br />Sector. Earnings in industries SIC 20 <br />(Manufacturing of food and kindred <br />products); SIC 3551 (Manufacturing <br />food products machinery); and SIC <br />515 (Wholesale raw farm products), <br />Food Wholesaling and Retail- <br />ing Sectors. Earnings for SIC 514 <br />(Wholesale groceries and related <br />products); SIC 54 (Food stores); and <br />SIC 58 (Eating and drinking places). <br />Total Colorado Income. Total <br />earnings by industry from the V,S, <br />Department of Commerce (lfl. <br />It should be noted that the <br />definition of the Colorado farm and <br />food system used in this report is <br />narrower than the definition of the <br />V,S, Food and Fiber System described <br />by the V,S, Department of Agriculture <br />Cl, Q) and (.'D. VSDA attempts to <br />include all industries that contribute <br />to the total economic activity required <br />to support the delivery of food, <br />clothing and shoes and tobacco to <br />domestic consumers and to support <br />agricultural exports, Included are a <br />number of SIC codes in what VSDA <br />designates as "primary industries" <br />(used all of their work force in the <br />production necessary to satisfy the <br />V,S, final demands for food and fiber) <br />and ({secondary industries" (used <br />between 50 and 100 percent of their <br />work force in production necessary to <br />satisfy the V.S, final demands for food <br />and fiber) a, p.36) The Colorado <br />estimates in this report exch.lde many <br />of these industries because (a) so few <br />are employed in most counties that <br />disclosure restrictions limit county <br />data, or (b) they appear unrelated to <br />Colorado agricultural production (for <br />example, tobacco, apparel and <br />printing). <br />