Agricultural Productivity Revisited

TLDR

Output is defined as gross production leaving the farm, and inputs include capital, labor, and intermediate goods. This paper describes production accounts for agriculture. The authors derive index numbers for gross output, capital, labor, and intermediate inputs, construct total factor productivity indexes, and compare the contributions of input growth and productivity growth to economic growth. Productivity growth is shown to be a key driver of agricultural economic growth.

Abstract

Abstract This paper describes production accounts for agriculture. Output is defined as gross production leaving the farm as opposed to real value added. Inputs are not limited to capital and labor but include intermediate inputs as well. We derive index numbers of gross output, capital, labor, and intermediate inputs. These data are used to construct indexes of total factor productivity. We then compare the contributions of input growth and productivity growth to economic growth. The important role of productivity growth in agriculture becomes immediately apparent.