36
concerns are rising about the environmental impact these low-productivity systems
will have on the natural resource base, along with rising greenhouse gas emissions.
2.2 What Is Productivity in Agriculture?
For agricultural producers of all scales, there are multiple approaches to meeting the
current and future demand for agricultural products:
• Land Expansion – Producers use more land to produce more agricultural products and, in some cases, convert forest to cropland or rangeland.
• Irrigation – Producers deploy or extend irrigation systems to protect land against
drought and improve its productive capacity, which may permit multiple cropping seasons. If not carefully managed, groundwater may be depleted.
• Intensification – Producers increase applications of fertilizer, machinery, labor,
seeds, herbicides, or other inputs on existing land to grow more crops or raise
more livestock.
Meeting demand in a way that reflects the needs of producers and consumers
today, while safeguarding future agricultural capacity, is best achieved another way:
• Productivity Growth – Adopting technologies and production practices that
result in more output from the same amount, or less, inputs. This can be measured as total factor productivity (TFP).
While the terms are sometimes used interchangeably, agricultural “productivity” is distinct from “output” and “yield.” Output is the gross amount produced, and
yield measures the amount of output per unit of production, usually land. TFP
(Fig. 2.2) is the ratio of agricultural outputs (gross crop and livestock output) to
inputs (land, labor, fertilizer, feed, machinery, and livestock). TFP measures changes
in the efficiency with which these inputs are transformed into outputs.
TFP is calculated using measurable inputs, so water and seeds are not factors in
the equation. Eighty percent of global agriculture is rain-fed, making it difficult to
quantify water usage. It is also difficult to quantify seed usage since millions of
farmers, particularly those at smaller scales, use open pollinated varieties (OPVs),
which are derived from the grain of the previous harvest.
By measuring TFP, as opposed to yields or output, we begin to understand the
extent to which increased output is due to better use of these critical resources.
Policymakers, development agencies, researchers, and producers use TFP to identify
where improvements are needed in agricultural production systems and to determine
which investments and policies increase productivity and enhance sustainability.
Producers, governments, and agribusinesses who pursue this course are not just
interested in whether agricultural output is growing but to what extent increased
output is due to better use of existing resources through the application of improved
products, technologies, and practices – essentially, how innovative their operations are.
A. Steensland and M. Zeigler
concerns are rising about the environmental impact these low-productivity systems
will have on the natural resource base, along with rising greenhouse gas emissions.
2.2 What Is Productivity in Agriculture?
For agricultural producers of all scales, there are multiple approaches to meeting the
current and future demand for agricultural products:
• Land Expansion – Producers use more land to produce more agricultural products and, in some cases, convert forest to cropland or rangeland.
• Irrigation – Producers deploy or extend irrigation systems to protect land against
drought and improve its productive capacity, which may permit multiple cropping seasons. If not carefully managed, groundwater may be depleted.
• Intensification – Producers increase applications of fertilizer, machinery, labor,
seeds, herbicides, or other inputs on existing land to grow more crops or raise
more livestock.
Meeting demand in a way that reflects the needs of producers and consumers
today, while safeguarding future agricultural capacity, is best achieved another way:
• Productivity Growth – Adopting technologies and production practices that
result in more output from the same amount, or less, inputs. This can be measured as total factor productivity (TFP).
While the terms are sometimes used interchangeably, agricultural “productivity” is distinct from “output” and “yield.” Output is the gross amount produced, and
yield measures the amount of output per unit of production, usually land. TFP
(Fig. 2.2) is the ratio of agricultural outputs (gross crop and livestock output) to
inputs (land, labor, fertilizer, feed, machinery, and livestock). TFP measures changes
in the efficiency with which these inputs are transformed into outputs.
TFP is calculated using measurable inputs, so water and seeds are not factors in
the equation. Eighty percent of global agriculture is rain-fed, making it difficult to
quantify water usage. It is also difficult to quantify seed usage since millions of
farmers, particularly those at smaller scales, use open pollinated varieties (OPVs),
which are derived from the grain of the previous harvest.
By measuring TFP, as opposed to yields or output, we begin to understand the
extent to which increased output is due to better use of these critical resources.
Policymakers, development agencies, researchers, and producers use TFP to identify
where improvements are needed in agricultural production systems and to determine
which investments and policies increase productivity and enhance sustainability.
Producers, governments, and agribusinesses who pursue this course are not just
interested in whether agricultural output is growing but to what extent increased
output is due to better use of existing resources through the application of improved
products, technologies, and practices – essentially, how innovative their operations are.
A. Steensland and M. Zeigler