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Is it true that productivity of US farms declined in the last decade?

  1. rodrigo sebidos profile image80
    rodrigo sebidosposted 2 years ago

    Is it true that productivity of US farms declined in the last decade?

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  2. Quilligrapher profile image86
    Quilligrapherposted 2 years ago

    The short answer is: No, the total factor productivity (TFP) in the US agricultural sector  has not declined overall in the last decade.

    US agricultural TFP has, in fact, increased dramatically since 1948 averaging more than 1% per year except for four sub-periods in which the increase was under 1%. The most recent period with an annual TFP growth below 1 percent was 2000-07. {1}

    While the reality of sustained productivity growth goes back to 1948, there is some concern that productivity growth, not total productivity, may be declining. However, a recent analysis published by the U.S. Department of Agriculture in July 2015 applied historical TFP time series data (1948-2011) to examine this issue. This study uncovered a trend of increased TFP following 1985 and no statistical evidence that reveals a productivity slowdown over the last sixty years.

    Q.

    1. rodrigo sebidos profile image80
      rodrigo sebidosposted 2 years agoin reply to this

      Thanks for the input, Quilligrapher, nice to have this clarification, but there was info that in the last 10yrs US govt. have been subsidizing the US farms to kept it afloat? can you confirm?

    2. Quilligrapher profile image86
      Quilligrapherposted 2 years agoin reply to this

      Gov has subsidized farming since 1930s; today, $20 billion annually does not enhance productivity nor improve profitability. See recent Wall Street Journal discussion http://www.wsj.com/articles/should-wash … 1436757020

    3. rodrigo sebidos profile image80
      rodrigo sebidosposted 2 years agoin reply to this

      I'm curious, in 2002, Farm Security and Rural Investment Act introduced counter capital payment prog. as triggered when current prices fall below the target level, but, paid based on historical production. Is this parallel to what ur saying?

 
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