September 2020: Farmer Exchange Rate of 107.10

Farmer terms of trade (FTT) is the ratio between the indices of price received by farmers (It) and the indices of the price paid by farmers.

FTT can be interpreted as an indicator to observe the purchasing power parity of farmers in the rural area. FTT also shows the terms of trade between agricultural products and consumption of goods and services as well as production cost.

FTT in September 2020 was 107,10, increased by 0,10 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 0,23 percent,  which was higher than the increase of the indices of price paid by the farmers that was about 0,13 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 108,72, horticulture about 95,97; smallholders estate crops about 91,17; animal husbandry about 109,11; and fishery about 105,25.

In September 2020, there was inflation in the rural area of Nusa Tenggara Barat about 0,21 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages and tobacco; housing, water, electricity and other household fuel; housing, water, gas and other fuel; Recreation, sport and culture; food and beverages services / restaurant; and personal treatment and other services.

Agricultural terms of trade in September 2020 was 106,82 percent, increased by 0,21 percent compared to the last month that was 106,59 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops and  horticulture which were reached 91,92 and 94,82, respectively. The agricultural terms of trade of other sub sectors were as follows: food crops (108,91); animal husbandry (107,64); and fishery (106,73).