TFP grew at an average annual rate of 1.38 percent, compared to 0.1 percent for total inputs.ĭownload higher resolution chart (1269 pixels by 1006, 150 dpi)ĮRS also reports measures of average annual TFP growth rates in subperiods defined by business cycles (measured from peak to peak in accordance with fluctuations in the overall U.S. With total input use rising only 7 percent over the same period, productivity growth accounted for most of total output growth during that period. farm output grew by 170 percent between 19-at an average annual rate of 1.48 percent. Therefore, TFP can provide a more informative measure of overall agricultural productivity over time.Īccording to the newest ERS data, U.S. Annual TFP growth is the difference between the growth of all agricultural outputs and all inputs taken together. On the other hand, total factor productivity (TFP) takes into account the contributions of all inputs, including capital, land, labor, and intermediate inputs such as agricultural chemicals and energy. For example, crop yields could increase as more fertilizer and pesticides are used, even if there were no improvements in production techniques. However, a single-factor productivity measure like yield is sensitive to changes in the use of other inputs and does not necessarily reflect overall technological advancement. The average corn yield grew much more, from 43 to 168 bushels per acre. For instance, between 19, the average soybean yield doubled from about 21 to 48 bushels per acre. Productivity can be measured in different ways, such as by yield (production per unit of land-a single-factor measure). As a result, total agricultural output nearly tripled between 19-even as the amount of labor and land (two major inputs) used in farming declined by about 75 percent and 24 percent, respectively. Innovations in animal and crop genetics, chemicals, equipment, and farm organization have enabled continuing output growth while using much less labor and farmland. Technological developments in agriculture have been influential in driving long-term growth in U.S.

By Sun Ling Wang, Richard Nehring, and Roberto Mosheim

Us oil production by year 2015