Measurement of agricultural productivity and efficiency pdf

It clarifies concepts and terminology used in this area, and provides a critical assessment of approaches and indicators used in the literature to measure competitiveness, productivity and efficiency at sectoral and farm Recently, Measuring agricultural productivity and technical efficiency has become an important and appealing research area due to the changes in agricultural economic and regulatory environment. This short note outlines a revised draft framework for systematically The USDA Economic Research Service has emerged as an acknowledged intellectual leader in construction and integration of national and state-level productivity accounts in agriculture. Sickles and Valentin Zelenyuk provide a comprehensive approach to productivity and efficiency analysis, covering its theoretical Mar 1, 2016 · DOI: 10. Definitions of Agricultural Productivity Dewett (1966) explains it as, “Productivity expresses the varying relationship The objective of the workshop was to foster exchange among USDA and DG AGRI officials about the role of agricultural productivity growth in advancing/hindering progress on social, economic, and environmental objectives and how the concept is treated and assessed in EU and U. Productivity is a core measure of economic performance that captures the efficiency of production and provides important insights for policy makers, researchers, and industry. Economic Efficiency and 19. This paper uses the index method to measure agricultural total factor productivity (TFP) for China’s crop and livestock industries, based on the gross output model from 1978 to 2016. A nonparametric analysis of technical, allocative, scale, and scope efficiency of agricultural production is presented based on a sample of Wisconsin farmers. 2 Production function and technical and allocative efficiency Agricultural production involves the combination of inputs to produce agricultural outputs. Inputs into agricultural production include labor, capital, and resource inputs such as land, water, and biodiversity, and material inputs (energy, fertilizer, chemicals) derived from raw materials. 1. This paper has discussed the main Jul 1, 1993 · Journal of Agricultural and Resource Economics. Jan 1, 2001 · The measurement of productivity continues to generate substantial interest. Expand. Aug 1, 2010 · This report reviews the literature on competitiveness, productivity and efficiency in the agricultural and agri-food sectors. E. In Feb 20, 2023 · Based on the construction of a composite index of consumption upgrading and the Malmquist index of non-expected output in the SBM-DEA model to measure agricultural green total factor productivity, this paper uses the PVAR model and panel data from 30 Chinese provinces from 2008 to 2020 to empirically analyze the mechanism of the effect of Jan 1, 2006 · Like production factors, measuring agricultural productivity is also the subject of lively debate. Basic definitions and 10. The section first gives the definition of key concepts, namely technical progress, productivity growth and efficiency. Our results show that agricultural TFP growth accelerates in China after 1979 and in India after 1974, although China’s agricultural ity indexes that purport to measure change in effi-ciency to a comparison of output with a single re-source. farm sector, and the rate of productivity growth is estimated to be higher in Jan 1, 2020 · The Chinese agricultural sector has experienced a substantial increase in total output since dramatic reforms were introduced in 1978. When a given combination of inputs produces a maximum output, the productivity is said to be at its maximum. Various approaches are being applied to evaluate aspects of plant nutrient use efficiency, among them ecological concepts based on accumulation and losses of biomass and nutrients, agronomic concepts with a major focus on agricultural crops and harvested products Jan 1, 2008 · Request PDF | On Jan 1, 2008, H. Total factor Productivity and partial 14. Technical Change, Productivity and Efficiency Productivity can be decomposed into both efficiency change and technical change components. e. TFP differs from measures like crop yield per Keywords: Agricultural Policies, Agriculture Productivity, Agriculture and Food Security, Ethiopia Sara Savastano is Senior Economist at the Global Indicators Group, Deve lopment Economics and Assistant Professor of Economics at the University of Rome Tor Vergata (currently on leave). Jan 8, 2019 · Measurement of crop productivity is one of the important concepts to examine the performance of agriculture and its transformation. 2. A change in total factor productivity may be driven by technical change (introducing new input or output factors) or efficiency change (increasing output without changing factors of production) (Dias Avila & Evenson, 2010). It clarifies concepts and terminology used in this. However, these two interrelated terms are not precisely the same Oct 30, 2009 · We measure and compare agricultural total factor productivity (TFP) growth and its components (efficiency and technical change) in China and India and test the TFP series for the existence of structural breaks relating the evolution of TFP to policy milestones. The objective of this chapter is to give an overview of the concept of efficiency and frontier models, the different approaches to its measurement in the context of frontier models and empirical studies on efficiency. Measuring Productivity in 24 Mar 15, 2023 · There are other indicators of water use for productivity in agroecosystems that do not fit classical definitions of WUE but have important implications for understanding the relationships between agricultural production and water across the supply chain, such as water footprints (Mekonnen and Hoekstra, 2011), water productivity (Molden et al Apr 14, 2021 · Allocative (or price) efficiency (AE) measures the firm’s ability in selecting the optimal input proportions, i. Approaches to efficiency measurement are broadly specified into parametric and non parametric approaches Dec 1, 2023 · The agricultural robots use a combination of emerging technologies such as computer vision, wireless sensor networks, satellite navigation systems, AI, cloud computing and IoT, thereby enhance the productivity and quality of agricultural products [ 34 ]. While individual products are usually measured by weight, their varying densities make measuring overall agricultural output difficult. Aug 2, 2019 · The Chinese agricultural sector has experienced a substantial increase in total output since dramatic reforms were introduced in 1978. Automated processes using wireless sensing and IoT. explains why agricultural productivity and efficiency is at the centre of many of the debates, policies and measures related to food security and rural livelihoods. ( 2022, 145) highlighted five important considerations and that can be extended to other African countries: Measurement of productivity is essential for monitoring progress with structural change in agriculture Mar 15, 2019 · Measurement of Productivity and Efficiency - March 2019. What is agricultural Productivity?. It is also a powerful engine to reduce resource use for the production of the same amount of food. This report r eviews the literature on competitiveness, productivity and efficiency. e . For ages that passed (and probably ages yet to come), economists have had an enormous interest in the ability to measure and analyze the performance of various economic systems and their individual decision-making units (often abbreviated as DMUs), such as an employee or a group thereof, a firm, a shop, a public agency, a bank, a Agriculture’s productivity performance in the U. Mousumi Malo. For each agricul- Jan 1, 2001 · The measurement of productivity continues to generate substantial interest. Acknowledgements . In any country, the growth of productivity and efficiency affects national income and inflation. Hence, it is essential to address the question of “how to improve China’s agricultural productivity and efficiency in order to achieve growth and sustainability of agriculture in the future”. The empirical results suggest that Mar 17, 2010 · The measurement of technical efficiency and productivity growth in the agricultural sector of developing and developed countries has received renewed attention in recent decades. Purpose-Total factor productivity (TFP) has become a prominent concept in agriculture economics and policy over the last three decades. M. Yee V. agricultural Sep 1, 1996 · This study applies a Data Envelopment Analysis (DEA) approach to analyze total factor productivity, technology, and efficiency changes in Chinese agricultural production from 1984 to 1993. The series has been revised and updated with this release, see Update and Revision History for details. Lachaud3 Víctor H. In a recent review of publications on the economics of agricultural productivity in South Africa, Vink et al. This is necessary in providing a common understanding of the usage of these terms in analysis of agricultural productivity. There is an imminent need to improve the water use efficiency or more importantly the water productivity. 5. For each agricul- Sep 29, 2022 · For this purpose, 114 research papers pertaining to employee productivity have been downloaded, of which 77 relevant articles were identified and reviewed for measuring employee productivity and Sep 15, 2016 · Technical efficiency and productivity of maize producers in eastern Ethiopia: a study of farmers within and outside the Sasakawa‐Global 2000 project. Moreira4 July 7, 2017 _____ 1Professor Agricultural and Resource Economics, University of Connecticut, and Adjunct Professor, Agricultural Economics, Universidad de Talca, Chile A final section relates agricultural productivity indices to factors such as research expenditures, extension services and education. Jan 1, 2012 · Many scholars used productivity and efficiency interchangeably and consider both as the measure of performance of a given firm. 6. Introduction and 7. The national and state-level ERS productivity measures are widely referred to and used, and international sectoral comparisons rely on the ERS production accounts for foundation methodology in constructing Productivity improvements have been driving growth, but the environment remains under pressure. Pasquale L. zyxwvutsr 2. 2 percent for manufacturing and 1. Jan 1, 2015 · Abstract and Figures. S. 1 The Malabo This paper measures and assesses the variation in total factor productivity (TFP) growth among Canadian provinces in crops and livestock production over the period 1940–2009. Tran}, journal={Canadian Mar 15, 2023 · 1. In the graph A is projected to A′ and sub-vector efficiency is given by the ratio The other approach developed to measure the technical efficiency is the partial productivity indices developed to indicate the ratio between the inputs and outputs. Agricultural and Food Sciences, Economics. approaches to building more sustainable food systems. Productivity measures are divided into indices that measure technical efficiency and technical change. Results indicate that technical efficiency was Agricultural Productivity in the United States. 3. in the agricultural and agri-food sectors. A data set of 51 observations of TE from 32 studies is used in order to test if specific and efficiently. 4). Table 1. Using the standard and innovative formulations of On the 85 From the studies discussed above, and to some extent, the general agricultural 86 productivity literature, it could be concluded that the methodologies and assumptions 87 used in measuring agricultural productivity growth could affect the magnitude of the 88 estimated productivity growth rates and the direction of effects. The rise in agricultural productivity is the single most important source of economic growth in the U. Twenty- nine provinces in China were classified into advanced-technology and low-technology categories. Fertilizer consumption has increased almost linearly Jul 27, 2023 · 78. Possible forms of agricultural production used for estimating water productivity (adap- The overall economic efficiency (EE) is a product of technical efficiency and allocative efficiency (EE = TE*AE). In recent years, small financial institutions (SFIs) have become the most favoured option for poverty alleviation in developing countries. Enhancing water product ivity through crop management. The use of frontier approaches such as the data envelopment analysis (DEA) and stochastic frontier analysis (SFA) have become more popular in efficiency and lenge. The food and agriculture sector is subject to a wide range of economy-wide policies as well as measures specific to the sector itself. Increase in fertilizer nutrient input has made a significant contribution to the improvement of crop yields in China. Ultimately, many of these issues cannot be resolved adequately, particularly given the limited resources available to PVOs and USAID for data collection. Agriculture in many developing countries is technically inefficient but technical change has had a greater impact on agricultural productivity. Introduction. The results indicate the existence of important economies of scale on very small farms, and of some diseconomies of scale for the larger farms. Increased productivity is a key to a healthy and thriving economy. The section then looks at the theoretical Jan 28, 2015 · It also determines if agricultural productivity growth in Canada has recently slowed down as indicated by earlier studies. As Western Balkan (WB) countries are in the process of integration into the European Union (EU), the importance of agricultural efficiency in an economic and environmental context and the actuality AGRICULTURAL PRODUCTIVITY: Agricultural productivity is measured as the ratio of agricultural outputs to agricultural inputs. The next step is to decompose the first leg of the DuPont triangle as (π/R) = [(R-C)/R] = [1 -(R/C)-1], where C is cost and R/C is profitability. The final step is to decompose profitability into productivity and price recovery, a multiplicative alternative to Miller’s additive relationship. Agriculture’s productivity performance in the U. Oct 1, 2011 · The concepts of productivity and efficiency have received a great deal of attention in many countries and organisations and by individuals in recent years. The data envelopment analysis (DEA) approach and annual data from 1972 to 1994 for four regions in Thailand are used. Agricultural productivity grew at 1. Agricultural Economics, Vol. Sep 1, 1996 · This study applies a Data Envelopment Analysis (DEA) approach to analyze total factor productivity, technology, and efficiency changes in Chinese agricultural production from 1984 to 1993. Distinguish between ‘agricultural productivity and ‘agricultural efficiency’, and bring out the disparity in regional distribution of agricultural efficiency. SOURCES AND MEASUREMENT OF AGRICULTURAL PRODUCTIVITY AND EFFICIENCY 63 improvement in the degree of technical efficiency is significant for the sector. Ignorance of resource and environmental factors in some studies while measuring agricultural productivity results in an inaccurate assessment on agricultural green development [9,10, 24, 27 Agricultural productivity growth is a powerful engine to increase food production without using more resources. . These results suggest that economies of scale associated with the expansion of aggregate livestock output have been the main driver of the productivity growth during the period 1940 to 2009. Low nutrient use efficiency and environmental pollution. AE) is unity, then economic efficiency is the same as technical efficiency, that is, one ensures maximum income at least cost (Fan,1999, Jha et al, 2000). The objective of the study is to contribute to a better understanding of the factors that influence estimates of mean TE. Why do we need agricultural productivity Apr 13, 2021 · Abstract and Figures. 341. We construct production accounts for the industries using input‐output Oct 15, 2012 · The objective of this paper is to apply the Translog Stochastic Frontier production model (SFA) and Data Envelopment Analysis (DEA) to estimate efficiencies over time and the Total Factor Productivity (TFP) growth rate for Bangladeshi rice crops (Aus, Aman and Boro) throughout the most recent data available comprising the period 1989–2008. Definitions of Agricultural Productivity Dewett (1966) explains it as, “Productivity expresses the varying relationship measuring agricultural productivity in the wider literature. The Malmquist productivity measures were decomposed into two components: technical change index and Nov 20, 2022 · Improvements in productivity and efficiency, together with agricultural modernization, are crucial in the process of future sustainable development. area Aug 30, 2023 · The direct impact of the digital economy on agricultural Green Total Factor Productivity (GTFP) is mainly reflected in the advancement of agricultural production efficiency, the improvement of the agricultural ecological environment, and the integrated development of rural industries. Nutrient use efficiency (NUE) is a critically important concept in the evaluation of crop production systems. It is expected that extension programmes will help increase farm productivity, farm revenue, reduce poverty and minimize food insecurity. Agriculture is the largest consumer of water and total evapotranspiration from global agricultural land could double in next 50 years if trends in food consumption and current practices of production continue. Consequently, the trend in productivity, economywide, is one of the most closely watched of our common economic performance…. ANALYSING POLICIES TO IMPROVE AGRICULTURAL PRODUCTIVITY GROWTH, SUSTAINABLY: REVISED FRAMEWORK Background 1. Bravo-Ureta1, 2 Roberto Jara-Rojas2 Michée A. Total Factor Productivity (TFP) growth – the efficiency with which producers combine inputs to make outputs – has driven most of the growth in agricultural production in the last two decades, though progress is uneven across countries and sector. , where the ratio of marginal products for each pair of inputs is equivalent to the ratio of their market prices. economy is noteworthy. 1111/CJAG. The Malmquist productivity measures were decomposed into two components: technical change index and Concept and Measurement of Agricultural Productivity Agricultural productivity is a measure of the efficiency with which inputs are used in ag-riculture to produce an output. Ca ves et al (1982), May 15, 2019 · Abstract. Jan 8, 2024 · Partial agricultural productivity is assessed by using two commonly used measures: land productivity or crop yield (defined as the ratio of output in value terms to total agricultural land) and labour productivity (defined as the ratio of output in value terms to total agricultural workers) (Benin & Nin-Pratt, 2016; Hayami & Ruttan, 1970 Oct 1, 2015 · In the case of measuring the sub-vector efficiency for input X1 (water use), then water use ( X1) is reduced while holding X2 (all the remaining inputs – agricultural crop production costs, area farmed, energy costs, etc. A metafrontier function approach is applied using a panel data set on 28 provinces during 1991–2005. The levels of Agricultural mechanization at some farms in two states in South West of Nigeria were measured and the productivity of each of the surveyed farms was analysed. It is possible to measure the impact of single or multiple inputs on the total amount of production by productivity indices developed in accordance with the concept of growth Feb 28, 2024 · Agricultural eco-efficiency (AEE) considers economic and environmental benefits and is a key indicator of green agricultural development. The core of agricultural development depends on agricultural production efficiency improvement, and total-factor productivity growth is its significant embodiment. The best measure is one that compares output with the combined use of all resources. (UPSC 2015) You may like also: Dec 1, 2023 · water productivity — the net return per unit of water used — is essential. The main aim of this paper is to Jan 1, 2010 · Abstract. According to Farrell, economic efficiency is a measure of overall performance and is equal to TE times. The broader the coverage of resources, gen-erally, the better is the productivity measure. Agricultural Efficiency is defined as the input-output ratio in an agricultural operation. Fabricant (P. In the graph A is projected to A′ and sub-vector efficiency is given by the ratio The primary purpose of this study is to measure technical efficiency in Thai agricultural production during the period 1972 to 1994. ABARES generates annual estimates of productivity for Australian broadacre farms using data lenge. Productivity growth is not synonymous with output growth; it is growth in resource efficiency. Dec 1, 2018 · PDF | On Dec 1, 2018, Franck Cachia published Case-Studies on the measurement of productivity and efficiency in agriculture | Find, read and cite all the research you need on ResearchGate and efficiently. 19, Issue. 3. It can be greatly impacted by fertilizer management as well as 3 W i i i ii 43 Commonly used forms of agricultural production are given in Table 1. Methods and perspectives to model and measure productivity and efficiency have made a number of important advances in the last decade. in many countries, since productivity is a key yardstick of ec onomic performance. S. Unlike past studies, this study decomposes technical efficiency into its pure technical and scale components. It reflects the impact of modern inputs and technology in production and is dependent upon the responsiveness of soil and the agricultural ecology. The measurement of agricultural Productivity and Efficiency Measurement in Agriculture Literature Review and Gaps Analysis Table of Contents 5. If the latter (i. May 21, 2010 · This article measures agricultural technical efficiency (TE) and total factor productivity (TFP) in China by including all producers in different groups operating under their own technologies. The empirical results suggest that The USDA Economic Research Service’s data product on International Agricultural Productivity provides annual indices of agricultural TFP for countries and regions of the world beginning in 1961. Bidhan Chandra Krishi Viswavidyalaya, Mohanpur-741252, West A key focus of ABARES research is measuring Australian farm productivity and understanding the factors that influence its growth. While the terms productivity and efficiency are often used interchangeably, efficiency The data sets are used to estimate and explain state level productivity and efficiency differences, and to test different approaches to productivity measurement. It also determines if agricultural productivity growth in Canada has recently slowed down as indicated by earlier studies. 1990 ). This paper estimates indices of Jul 7, 2017 · A META ANALYSIS OF FARM EFFICIENCY: EVIDENCE FROM THE PRODUCTION FRONTIER LITERATURE Boris E. Article id: 22822. Nov 24, 2012 · Therefore, the overall measure of technical efficiency can be disaggregated into three components: (1) pure technical efficiency due to producing within an isoquant frontier, (2) congestion due to overutilization of inputs and (3) scale efficiency due to deviations from constant returns to scale (Weersink et al. Ahearn J. The investigated variables are agricultural productivity, which is used … Expand This chapter discusses issues relating to the measurement and interpretation of the six generic agricultural productivity performance impact indicators listed in Table 1. The The primary purpose of this study is to measure technical efficiency in Thai agricultural production during the period 1972 to 1994. Sep 30, 2011 · However, increasing crop productivity in China still requires innovative approaches to water saving in agriculture. Productivity is defined as how well an economic system converts inputs into outputs. Scandizzo is professor at the Productivity is defined as how well an economic system converts inputs into outputs. To achieve the multiple goals of improving agricultural production efficiency, reducing agricultural environmental damage, and reducing the input of agricultural resources, this study enriches the case study of agricultural production performance evaluation Sep 30, 2011 · However, increasing crop productivity in China still requires innovative approaches to water saving in agriculture. Several methods have been used to quantify agricultural performance (FAO, 2017; Dharmasiri, 2012) . ) and output (Gross Margin) constant. measurement is important in accurately assessing smallholder wellbeing (Carletto, Jolliffe, & Banerjee, 2015b). Research Scholar, Department of Agronomy. The measurement of productive efficiency and productivity growth | Find, read and cite all the research Oct 19, 2018 · Background In agricultural-dependent economies, extension programmes have been the main conduit for disseminating information on farm technologies, support rural adult learning and assist farmers in developing their farm technical and managerial skills. It includes ascertaining the impact of technological advancement, effective management of available water resources and organizational set up for the agricultural production. The paper uses the stochastic frontier approach that incorporates inefficiency to decompose TFP growth into technical change (TC), scale effect (SE), and technical efficiency change. Therefore, agricultural productivity can be defined as a measure of efficiency with which an agricultural production system employs land, labour, capital and other resources. Apr 1, 2016 · agricultural producti vity, the indexing appr oach to measuring productivity and efficiency also gained importance with the introduction of the Malmquist index. This paper has discussed the main Sep 1, 2001 · A meta-analysis is performed to review empirical estimates of technical efficiency (TE) in developing country agriculture. Aug 1, 2011 · Productivity= Output(s)/Input(s) (1) The concept of productivity is closely related with that of efficiency. 89 percent per year on average, for the period 1948-96, compared with 1. Fertilizer consumption has increased almost linearly Mar 1, 2022 · The agriculture sector is the most important sector for the rural and urban population, because it is the basic supporting sector for industry and development of the national economy of developing countries. 6) Along with Fabricant, U. Technical 16. Nov 5, 2008 · Multifactor agricultural productivity for seventy countries is calculated using a programming method. Ball R. Fried and others published Efficiency and productivity. 1. 1 percent for non-farm business in general (fig. More agricultural crop productivity through intensive agriculture chemical, by ignoring the negative impact on the environment create some adverse effects like water pollution, soil Feb 20, 2023 · Based on the construction of a composite index of consumption upgrading and the Malmquist index of non-expected output in the SBM-DEA model to measure agricultural green total factor productivity, this paper uses the PVAR model and panel data from 30 Chinese provinces from 2008 to 2020 to empirically analyze the mechanism of the effect of . 1 Introduction. Hence, the need is to increase water productivity of agricultural production systems that the poor people in water scarce areas depend on. Mar 10, 2021 · Agricultural Efficiency is a synonymous term to Agricultural Productivity, but it is different from it. 3, p. Using the standard and innovative formulations of the theory and practice of efficiency and productivity measurement, Robin C. Nehring. The goal is to produce more food, income, livelihoods, and ecosystem services while using less water (Molden and Abstract The use of more nutrient-efficient crops is important for maintaining yields while enhancing environmental sustainability. O. This chapter explains in detail the concept and measurement of ‘water-use The next step is to decompose the first leg of the DuPont triangle as (π/R) = [(R-C)/R] = [1 -(R/C)-1], where C is cost and R/C is profitability. This study delves into the factors that boost agricultural productivity while taking five macroeconomic variables into account. 10. 1998. 12061 Corpus ID: 15159123; Sources and Measurement of Agricultural Productivity and Efficiency in Canadian Provinces: Crops and Livestock @article{Darku2016SourcesAM, title={Sources and Measurement of Agricultural Productivity and Efficiency in Canadian Provinces: Crops and Livestock}, author={Alexander Bilson Darku and Stavroula Malla and Kien C. Therefore, output is usually measured as the market value of final Oct 1, 2015 · In the case of measuring the sub-vector efficiency for input X1 (water use), then water use ( X1) is reduced while holding X2 (all the remaining inputs – agricultural crop production costs, area farmed, energy costs, etc. fi tt oq za tu pk qr aq oj qi