Index of prices received by farmers is the price index associated with basic pricing for agricultural goods. Index of prices paid by farmers is related to the pricing of agricultural needs, such as fertilizer.
As with other indices, both indices are also a measure of the amount of change in prices of farm products sold and products purchased by farmers.
Figures of index received by farmers is influenced by factors:
1. purchase price of medicines needed by farmers
2. total production
Figures of index paid by farmers is strongly influenced by the following things:
1. government policy
2. production costs
3. trade policy
4. value for money.