By

Aparna Singh Amitesh Shukla Vardan Rastogi Syed Athar Mehdi Vijyant Singh III CH,MJPRU,BAREILLY,U.P.

Agricultural Productivity

Sources of agricultural productivity

Factors influencing growth in agriculture

Importance of agricultural productivity

Measuring agricultural productivity

Data needs for growth models

Data issues

US Agricultural productivity

AGRICULTURAL PRODUCTIVITY

• Agricultural productivity is measured as the ratio of agricultural outputs to agricultural inputs.

• Output is usually measured as the market value of final output, which excludes intermediate products such as corn feed used in the meat industry

• This output value may be compared to many different types of inputs such as labour and land (yield). These are called partial measures of productivity.

• Agricultural productivity may also be measured by what is termed total factor productivity (TFP).

• This method of calculating agricultural productivity compares an index of agricultural inputs to an index of outputs.

• This measure of agricultural productivity was established to remedy the shortcomings of the partial measures of productivity , notably that it is often hard to identify the factors cause them to change.

• Changes in TFP are usually attributed to technological improvements.

Mechanization

Fertilizers

High yielding varieties

Irrigation

Liming

Pesticides

Factors Influencing Growth in

Agriculture

IMPORTANCE OF AGRICULTURAL PRODUCTIVITY

Growth and competitiveness on agricultural market

Income distribution and saving

Agricultural growth

Alleviate poverty

More stable food supply

Lower food prices

Increase in wages

Lower opportunity cost

More consumers

Labor migration

More efficient distribution of scarce sources

Measuring Agricultural Productivity

Index number or growth accounting techniques

Economic estimation of production relationship

Non parametric approaches

Data Needs for Growth Models

Land improvements

Gross fixed capital

formation

DATA ISSUES

• Between 1950 and 2000, during the so-called "second agricultural revolution of modern times", U.S. agricultural productivity rose fast, especially due to the development of new technologies.

• For example, the average amount of milk produced per cow increased from 5,314 pounds to 18,201 pounds per year (+242%), the average yield of corn rose from 39 bushels to 153 bushels per acre (+292%), and each farmer in 2000 produced on average 12 times as much farm output per hour worked as a farmer did in 1950.

REFERENCES Abramovitz, M. 1956. Resource and output trends in the United States

since 1870. American Economic Review, Papers and Proceedings, 46 May: 5-23.

Ahearn, M., Yee, J., Ball, E. & Nehring, R. 1998. Agricultural productivity in the United States. Resource Economics Division, Economic Research Service, U.S. Department of Agriculture. Agriculture Information Bulletin no. 740.

Antholt, C.H. 1994. Getting ready for the twenty-first century: technical change and institutional modernization in agriculture. World Bank Technical Paper #217. February.

Antle, J. 1983. Infrastructure and aggregate agricultural productivity: international evidence. Economic Development and Cultural Change, 31 April: 609-619.

Antle, J. & Capalbo, S. 1988. An introduction to recent developments in production theory and productivity measurement. In S. Capalbo & J. Antle, eds. Agricultural productivity measurement and explanation. Washington, DC, Resources for the Future, pp17-35