One result of the post-war disparity between agricultural and non-agricultural prices has been an emphasis on the fact that the economic welfare of any group in society depends upon the exchange value of its goods and services for the goods and services of other groups. This idea has been expressed in a variety of loose comments and rough comparisons. The three phrases, "the purchasing power of the farmer's dollar," "the purchasing power of the farmer's product," and "the purchasing power of the farmer, or the farmer's income," have been used interchangeably. Much publicity has been given to the first two of these phrases without recognizing that it is the third concept, namely, the purchasing power of the farmer, which is of greatest importance. This brief paper will attempt to deal only with the outstanding differences between these three forms of agricultural purchasing power and to indicate briefly the practical significance of the purchasing power of the farmer's income as a measure of agricultural welfare and as an element in the business activity of the country as a whole.