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Crops and Livestock Productivity Growth in the Prairies: The Impacts of Technical Change and Scale

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  • Bryce Stewart
  • Terrence Veeman
  • James Unterschultz

Abstract

This study undertakes a comprehensive analysis of productivity growth in Canadian Prairie primary agriculture from 1940 to 2004. Total factor productivity (TFP) is measured using Törnqvist‐Theil indexing procedures for the Prairie provinces (Alberta, Manitoba, and Saskatchewan). During the 1940–2004 period, productivity growth in Prairie agriculture grew at a rate of 1.56% a year. This aggregate measure does not indicate the substantial variations in productivity growth that have occurred between crops and livestock, between the provinces, and over time: productivity growth in crops is considerably higher than productivity growth in livestock; Manitoba and Saskatchewan display consistently higher productivity growth than Alberta; and from 1980 to 2004 livestock productivity growth increased considerably in Manitoba and Saskatchewan. The productivity growth estimates are decomposed econometrically using a translog cost function to indicate the relative roles of technical change and scale effects. Productivity growth in crops has largely been the result of technical change while economies of scale have played a critical role in generating productivity growth in the livestock sector. La présente étude est une analyse approfondie de la croissance de la productivité du secteur de l’agriculture primaire dans les provinces des Prairies (Alberta, Manitoba et Saskatchewan), de 1940 à 2004. Nous avons mesuré la productivité totale des facteurs (PTF) à l’aide de l’indice Törnqvist‐Theil. De 1940 à 2004, la productivité de l’agriculture dans les provinces des Prairies a cru au rythme annuel de 1,56 p. 100. Cette mesure globale n’indique pas les variations substantielles de la croissance de la productivité entre le secteur des cultures et le secteur de l’élevage, entre les provinces, et au fil du temps. La croissance de la productivité dans le secteur des cultures a été considérablement plus élevée que celle observée dans le secteur de l’élevage. La croissance de la productivité au Manitoba et en Saskatchewan a été supérieure à celle observée en Alberta. De 1980 à 2004, la croissance de la productivité du secteur de l’élevage a enregistré une hausse considérable au Manitoba et en Saskatchewan. Nous avons décomposé la croissance de la productivité de façon économétrique à l’aide d’une fonction de coût de type translog afin de faire ressortir le rôle des changements technologiques et des économies d’échelle. Les changements technologiques ont joué un rôle important dans la croissance de la productivité du secteur des cultures, tandis que les économies d’échelle ont joué un rôle primordial dans la croissance de la productivité du secteur de l’élevage.

Suggested Citation

  • Bryce Stewart & Terrence Veeman & James Unterschultz, 2009. "Crops and Livestock Productivity Growth in the Prairies: The Impacts of Technical Change and Scale," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 57(3), pages 379-394, September.
    • Handle: RePEc:bla:canjag:v:57:y:2009:i:3:p:379-394
    DOI: 10.1111/j.1744-7976.2009.01157.x
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    References listed on IDEAS

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    Cited by:

    1. Ricardo de Avillez, 2011. "A Detailed Analysis of the Productivity Performance of the Canadian Primary Agriculture Sector," CSLS Research Reports 2011-06, Centre for the Study of Living Standards.
    2. Sabasi, Darlington & Shumway, C. Richard, 2014. "Technical Change, Efficiency, and Total Factor Productivity in U.S. Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170225, Agricultural and Applied Economics Association.
    3. Wei Lu & Wiktor Adamowicz & Scott R. Jeffrey & Greg G. Goss & Monireh Faramarzi, 2018. "Crop Yield Response to Climate Variables on Dryland versus Irrigated Lands," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(2), pages 283-303, June.
    4. Ricardo de Avillez, 2011. "A Half-Century of Productivity Growth and Structural Change in Canadian Agriculture: An Overview," International Productivity Monitor, Centre for the Study of Living Standards, vol. 22, pages 82-99, Fall.
    5. Edgar E. Twine & James Rude & Jim Unterschultz, 2016. "Canadian Cattle Cycles and Market Shocks," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 119-146, March.
    6. Alexander Bilson Darku & Stavroula Malla & Kien C. Tran, 2016. "Sources and Measurement of Agricultural Productivity and Efficiency in Canadian Provinces: Crops and Livestock," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(1), pages 49-70, March.
    7. Darku, Alexander B. & Malla, Stavroula, 2010. "Agricultural Productivity Growth in Canada: Concepts and Evidences," CAIRN Policy Briefs 273055, Canadian Agricultural Innovation and Regulation Network (CAIRN).
    8. Lana Awada & Richard S. Gray & Cecil Nagy, 2016. "The Benefits and Costs of Zero Tillage RD&E on the Canadian Prairies," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 417-438, September.
    9. Wang, Xiaobing & Hockmann, Heinrich, 2012. "Technical Efficiency Under Producer’S Individual Technology: A Metafrontier Analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126755, International Association of Agricultural Economists.
    10. Bishnu Saha & Rakhal Sarker & Verna Mitura, 2014. "Impact of Genetically Engineered Varieties on the Cost Structure of Corn and Soybean Production in Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 263-282, June.
    11. Getu Hailu, 2023. "Reflections on technological progress in the agri‐food industry: Past, present, and future," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 119-141, March.
    12. Gonzalez-Corzo, Mario, 2019. "Agricultural Productivity in Cuba after a Decade of Reforms," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 1).

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