Agricultural productivity

Food production per capita (1961-2005)

Grain production facilities

Agricultural productivity is measured as the ratio of agricultural outputs to agricultural inputs. While individual products are usually measured by weight, their varying densities make measuring overall agricultural output difficult. Therefore, 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.^[1]

=='Agricultural productivity ‘Agricultural Productivity’ has been defined by several scholars with reference to their own views and disciplines. Agriculturalists, agronomists, economists and geographers have interpreted it in different ways. Agricultural productivity is defined in agricultural geography as well as in economics as “output per unit of input” or “output per unit of land area”, and the improvement in agricultural productivity is generally considered to be the results of a more efficient use of the factors of production, viz. physical, socio-economic, institutional and technological.

“Yield per unit” should be considered to indicate agricultural productivity. Many scholars have criticized this suggestion pointing out that it considered only land as a factor of production, with no other factors of production[1]. Therefore, other scholars have suggested that agricultural productivity should contain all the factors of production such as labor, farming experiences, fertilizers, availability and management of water and other biological factors. As they widely accept that the average return per unit does not represent the real picture, the use of marginal return per agricultural unit was suggested.

Agricultural productivity may be defined as the “ratio of index of local agricultural output to the index of total input used in farm production” [2] It is, therefore, a measure of efficiency with which inputs are utilized in production, if other things being equal. Agricultural productivity here refers to the returns from arable land or cultivable land unit. Agricultural efficiency as productivity expressing the varying relationship between agricultural produce and one of the major inputs, like land, labor or capital, while other complementary factors remaining the same”. This expression reveals that the productivity is a physical component rather than a broad concept. Saxon observed that productivity is a physical relationship between output and the input which gives rise to that output.

Some sources of agricultural productivity are:^[2]

• Mechanization
• High yield varieties, which were the basis of the Green revolution
• Fertilizers: Primary plant nutrients: nitrogen, phosphorus and potassium^[3][4] and secondary nutrients nutrients such as sulfur, zinc, copper, manganese, calcium, magnesium and molybdenum on deficient soil
• Liming of acid soils to raise pH and to provide calcium and magnesium
• Irrigation
• Herbicides
• Pesticides
• Increased plant density
• Animal feed made more digestible by processing
• Keeping animals indoors in cold weather

See: Productivity improving technologies (historical) Section: 4: Mechanized agriculture, Section 7: Scientific agriculture

Importance of agricultural productivity

The productivity of a region's farms is important for many reasons. Aside from providing more food, increasing the productivity of farms affects the region's prospects for growth and competitiveness on the agricultural market, income distribution and savings, and labour migration. An increase in a region's agricultural productivity implies a more efficient distribution of scarce resources. As farmers adopt new techniques and differences in productivity arise, the more productive farmers benefit from an increase in their welfare while farmers who are not productive enough will exit the market to seek success elsewhere.^[5]

A cooperative dairy factory in Victoria.

As a region's farms become more productive, its comparative advantage in agricultural products increases, which means that it can produce these products at a lower opportunity cost than can other regions. Therefore, the region becomes more competitive on the world market, which means that it can attract more consumers since they are able to buy more of the products offered for the same amount of money.

Increases in agricultural productivity lead also to agricultural growth and can help to alleviate poverty in poor and developing countries, where agriculture often employs the greatest portion of the population. As farms become more productive, the wages earned by those who work in agriculture increase. At the same time, food prices decrease and food supplies become more stable. Labourers therefore have more money to spend on food as well as other products. This also leads to agricultural growth. People see that there is a greater opportunity earn their living by farming and are attracted to agriculture either as owners of farms themselves or as labourers.^[6]

A liquid manure spreader.

However, it is not only the people employed in agriculture who benefit from increases in agricultural productivity. Those employed in other sectors also enjoy lower food prices and a more stable food supply. Their wages may also increase.^[6]

Agricultural productivity is becoming increasingly important as the world population continues to grow. India, one of the world's most populous countries, has taken steps in the past decades to increase its land productivity. Forty years ago, North India produced only wheat, but with the advent of the earlier maturing high-yielding wheats and rices, the wheat could be harvested in time to plant rice. This wheat/rice combination is now widely used throughout the Punjab, Haryana, and parts of Uttar Pradesh. The wheat yield of three tons and rice yield of two tons combine for five tons of grain per hectare, helping to feed India's 1.1 billion people.^[7]

Agricultural productivity and sustainable development

Increase in agricultural productivity are often linked with questions about sustainability and sustainable development. Changes in agricultural practices necessarily bring changes in demands on resources. This means that as regions implement measures to increase the productivity of their farm land, they must also find ways to ensure that future generations will also have the resources they will need to live and thrive.

U.S. Agriculture productivity

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.^[8]

Productive farms

Dairy cattle in Maryland

Some essential food products including bread, rice and pasta

For many farmers (especially in non-industrial countries) agricultural productivity may mean much more.^{[citation needed]} A productive farm is one that provides most of the resources necessary for the farmer's family to live, such as food, fuel, fiber, healing plants, etc. It is a farm which ensures food security as well as a way to sustain the well-being of a community. This implies that a productive farm is also one which is able to ensure proper management of natural resources, such as biodiversity, soil, water, etc. For most farmers, a productive farm would also produce more goods than required for the community in order to allow trade.

Diversity in agricultural production is one key to productivity, as it enables risk management and preserves potentials for adaptation and change. Monoculture is an example of such a nondiverse production system. In a monocultural system a farmer may produce only crops, but no livestock, or only livestock and no crop.

The benefits of raising livestock, among others, are that it provides multiple goods, such as food, wool, hides, and transportation. It also has an important value in term of social relationships (such as gifts in weddings). In case of famine, when crops are not sufficient to ensure food safety, livestock can be used as food. Livestock may also provide manure, which can be used to fertilize cultivated soils, which increases soil productivity. On the other hand, in an agricultural system based only on raising livestock, food has to be bought to other farmers, and wastes produced cannot be easily disposed of. Production has many functions, and diversity is the foundation of such production. To ignore the complex functions provided by a farm is thought by many to turn agricultural production into a commodity.^{[citation needed]}

See also

• Biodiversity
• Green Revolution
• Mechanized agriculture
• Productivity
• Productivity improving technologies (historical) Section 4: Mechanized agriculture, Section 6: Scientific agriculture

References

1. ^ Agricultural Investment and Productivity in Developing Countries, FAO Economic And Social Development Paper No. 148, ed. Lydia Zepeda, 2001, FAO Corporate Document Repository, 12 July 2007, http://www.fao.org/docrep/003/X9447E/x9447e00.HTM.[1]
2. ^ Egli, D.B.. "Comparison of Corn and Soybean Yields in the United States: Historical Trends and Future Prospects". Agronomy 100:S-79-S-88 DOI: 10.2134/agronj2006.0286c. http://www.t-stormweather.net/whitepaper.pdf. 
3. ^ http://www.ipni.net/ipniweb/portal.nsf/0/35A687BDB628E999852572050049A51A International Plant Nutrition Institute
4. ^ http://www.tfi.org/ The Fertilizer Institute
5. ^ Mundlak, Yair, “Agricultural Productivity and Economic Policies: Concepts and Measurements,” OECD Working Paper No. 75, OECD Development Center, August 1992, SourceOECD.org, 13 July 2007 http://miranda.sourceoecd.org/vl=4172647/cl=20/nw=1/rpsv/cgi-bin/wppdf?file=5lgsjhvj7g21.pdf (13-16).
6. ^ ^{a b} Promoting Pro-Poor Growth: Agriculture, DAC Guidelines and Reference Series, Paris: OECD, 2006, OECD.org, 13 July 2007 http://www.oecd.org/dataoecd/9/60/37922155.pdf (10).
7. ^ Brown, Lester R. Plan B 2.0: Rescuing a Planet Under Stress and a Civilization in Trouble. New York City: Earth Policy Institute, 2006.
8. ^ FUGLIE,Keith O.; MacDONALD, James M. and BALL, Eldon.Productivity Growth in U.S. Agriculture. EB-9, U.S. Dept. of Agriculture (USDA), Econ. Res. Serv. September 2007. Aailable at: <http://www.ers.usda.gov/publications/EB9/eb9.pdf>. Acessed in: 01 Oct. 2011

External links

• Food and Agriculture Organization of the United Nations - www.fao.org
• OECD Department for Trade and Agriculture: Food, Agriculture and Fisheries
• OECD Agricultural Outlook Database (2006-2015)

[1] Dharmasiri, L.M. (2011), “Measuring Agricultural Productivity Using Average Productivity Index (API)” Sri Lanka Journal of Advanced Social Studies, Publication of the NCAS, Sri Lanka.  

[2] Shafi, M. (1984), Agricultural Productivity and Regional Imbalances, Concept publishing company, New Delhi.