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<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).
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