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What does parity mean to farmers?

The doctrine of parity was used to justify agricultural price controls in the United States beginning in the 1920s. It was the belief that farming should be as profitable as it was between 1909 and 1914, an era of high food prices and farm prosperity.

What is parity pricing?

What Is Parity Price? Parity price refers to a price level that sets two assets or securities equal in value to one another. It is a concept that is used in several markets, including fixed income, equities, commodities, and convertible bonds.

What does parity mean in the Great Depression?

Parity was the name associated with these programs because it meant the farmer would be treated with economic equality and prices would be adjusted for inflation to remove the destructive cost-price squeeze and the need for farmers to over-produce their way out of poverty and debt.

What is the concept of parity?

Parity is a term used to describe when two things are equivalent to one another. Thus, it can be used to refer to two securities having equal value, such as a convertible bond and the value of a stock (if the bondholder chooses to convert a convertible bond into common stock).

What is parity ratio?

The parity ratio is a percentage relationship between the Index of Prices Received and the Index of Prices Paid.

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