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Producer Price Premium (PI1568)

Price premium percentage that the producer (supplier) selling to the organization obtains from the organization for its goods or services during the reporting period.
Reporting format
Metric type
Metric level
IRIS metric citation
IRIS, 2016. Producer Price Premium (PI1568). v4.0.


Organizations should footnote all assumptions used, including the source for the benchmark product/service rate. See usage guidance for further information.

Usage Guidance

  • The price premium is the percentage by which a product's selling price exceeds a benchmark price. The benchmark price is the average price that can be obtained for a similar good or service in the local area.
  • An example of how this metric might be calculated: By selling to the organization, farmers get $2/pound for a good (e.g., apples) and only $1 for selling the same good in the local market. The reporting organization would report this as ($2-$1)/$1 = 1 (or 100%) and would footnote assumptions on how they derived the local market (i.e., benchmark) rate.