by Econlife Editor    •    Feb 13, 2014    •    492 Views

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Purchasing power for farmers that is equal to a level achieved during a prior time period. Historically, parity was achieved when a bushel of farm commodities purchased the same quantity of goods that it could buy during the period 1910-1914. More recently, the parity level has been defined through a formula that relates to the average of the prices received during the preceding 10 years.

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