Technological developments in agriculture have enabled continued output growth without requiring many additional inputs. Innovations in animal and crop genetics, chemicals, equipment, and farm organization have made it possible for total agricultural output to nearly triple between 1948 and 2021. During that period, a USDA report says the amount of inputs used in farming declined slightly over time, meaning that the growth in agricultural output over the long term has depended on increases in total factor productivity. TFP measures the amount of agricultural output produced from the combined inputs like labor, capital, and intermediate inputs employed in farm production. Therefore, growth in TPP indicates positive changes in the efficiency with which inputs are transformed into outputs. The USDA report says it can also be seen as an indicator of technical change. In the short term, total output growth and estimated TFP growth can be affected by random events like adverse weather.
(Iowa Agribusiness Radio NEtwork story and picture)
