July 2021 : Farmer Terms of Trade was 107,93

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 July 2021 was 107,93, increased by 0,84 percent compared to the previous month. The increase occurred because the indices of price received by farmers rose by 1,05 percent, which was higher than the increase of the indices of price paid by the farmers that was only 0,21 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 109,12, horticulture about 104,88; smallholders estate crops about 91,91; animal husbandry about 111,30; and fishery about 108,53.

In July 2021, there was inflation in the rural area of West Nusa Tenggara about 0,25 percent. This was due to increasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; and clothing and footwear; housing, water, electricity, and other fuel; and Recreation, sport, and culture.

Agricultural terms of trade in July 2021 were 107,73 percent, increased by 0,92 percent compared to the previous month that was 106,75 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 90,59. The agricultural terms of trade of other sub sectors were as follows: food crops (109,21); horticulture (104,69); animal husbandry (110,20); and fishery (110,72).