August 2021 : Farmer Terms of Trade was 106,84

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 August 2021 was 106,84, decreased by -1,01 percent compared to the previous month. The decrease occurred because the indices of price received by farmers fell by -0,92 percent, on the contrary the indices of price paid by the farmers increase by 0,08 percent.

The value of farmer terms of trade by sub sector as follows: food crops about 107,63, horticulture about 100,77; smallholders estate crops about 94,62; animal husbandry about 111,10; and fishery about 110,53.

In August 2021, there was deflation in the rural area of West Nusa Tenggara about -0,01 percent. This was due to decreasing value of Household Consumption Indices (IKRT) of the following expenditure groups: food, beverages, and tobacco; clothing and footwear; housing, water, electricity, and other fuel; and information, communication, and financial services.

Agricultural terms of trade in August 2021 were 106,51 percent, decreased by -1,13 percent compared to the last month that was 107,73 percent. Majority of agricultural terms of trade reached the value above 100 except for smallholder’s estate crops which only amounted of 93,19. The agricultural terms of trade of other sub sectors were as follows: food crops (107,64); horticulture (100,55); animal husbandry (109,58); and fishery (112,55).