WSP11866

• File Number: 8030
• Description: Section D General Correspondence-Other Organizations/Agencies
• State: CO
• Date: 10/1/1974
• Author: USWRC
• Title: US Water Resources Council-1972-1977-Guideline 2-Agricultural Price Standards
• Water Supply Pro - Doc Type: Publication

2

the output or input of the plan affects prices, abnormal
weather or other factors have temporarily affected
prices, or governmental or other institutional arrange-
ments have temporarily affected prices. The Water
Resources Council will publish periodically data on
prices of agricultural and other goods and services
that can be furnished efficiently for all planning activi-
ties. Included in the publications may be special analyses
of price problems and simulated prices for recreation and
other project outputs or effects for which market prices
are not readily available. "

.

,

Conceptual Considerations

A basic principle adhered to in the development and adoption of
the price data contained herein is that the evaluation process
should yield valid estimates of the aggregate effect on "real
income, " both beneficial and adverse, of those affected by develop-
mental projects and programs under consideration. Implicit in
this principle is the concept of exchange value as articulated in
the "Principles and Standards." Inherent in the principle is the
provision of the "Principles and Standards" that benefits and costs
of alternative projects and programs are measured at a common
general price level. A prime objective, therefore, is a set of
price relationships among inputs and outputs representative of
the period of analysis over which costs are incurred and benefits
accrue; or, in the case of induced adverse effects, the period of
time over which economic losses are incurred. Relative price in
this publication will be considered as those output and input prices
toward which the regression analysis indicates the agricultural
economy has been moving.

Tbe price data contained in this document, along with provisions
and procedures for updating, are consistent with the "Principles I'
and Standards," and reflect the established practice of reporting
costs at current prices at the time the projects or programs are \
planned. The purpose of the price normalization process, however,
is to eliminate short-term abnormalities; and, at the same time, to
adhere to the current general price as reflected in the latest pub-
lished price information. Provisions for updating and adjustment