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Decomposition of Total Factor Productivity Change in the U.S. Hog Industry

Author

Listed:
  • Key, Nigel
  • McBride, William
  • Mosheim, Roberto

Abstract

The U.S. hog industry has experienced dramatic structural changes and rapid increases in farm productivity. A stochastic frontier analysis is used to measure hog enterprise total factor productivity (TFP) growth between 1992 and 2004 and to decompose this growth into technical change and changes in technical efficiency, scale efficiency, and allocative efficiency. Productivity gains over the 12-year period are found to be explained almost entirely by technical progress and by improvements in scale efficiency. Differences in TFP growth rates in the Southeast and Heartland regions were found to be explained primarily by differences in farm size growth rates.

Suggested Citation

  • Key, Nigel & McBride, William & Mosheim, Roberto, 2008. "Decomposition of Total Factor Productivity Change in the U.S. Hog Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 137-149, April.
    • Handle: RePEc:cup:jagaec:v:40:y:2008:i:01:p:137-149_02
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    Cited by:

    1. Steven Helfand & Matthew Taylor, 2018. "The Inverse Relationship between Farm Size and Productivity: Refocusing the Debate," Working Papers 201811, University of California at Riverside, Department of Economics.
    2. Ernesto Lopez‐Valeiras & Jacobo Gomez‐Conde & Teresa Fernandez‐Rodriguez, 2016. "Firm Size and Financial Performance: Intermediate Effects of Indebtedness," Agribusiness, John Wiley & Sons, Ltd., vol. 32(4), pages 454-465, November.
    3. Kellermann, Magnus A., 2015. "Total Factor Productivity Decomposition and Unobserved Heterogeneity in Stochastic Frontier Models," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 44(01), pages 1-25, April.
    4. Key, Nigel, 2013. "Production Contracts and Farm Business Growth and Survival," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 45(2), pages 277-293, May.
    5. Steele C. West & Amin W. Mugera & Ross S. Kingwell, 2024. "The impact of repayment obligations arising as a by‐product of input use on partial inefficiency: Evidence from Western Australian farm businesses," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 68(3), pages 678-700, July.
    6. Ning Geng & Zengjin Liu & Xuejiao Wang & Lin Meng & Jiayan Pan, 2022. "Measurement of Green Total Factor Productivity and Its Spatial Convergence Test on the Pig-Breeding Industry in China," Sustainability, MDPI, vol. 14(21), pages 1-19, October.
    7. Sabine Duvaleix-Tréguer & Carl Gaigné, 2016. "On the nature and magnitude of cost economies in hog production," Agricultural Economics, International Association of Agricultural Economists, vol. 47(4), pages 465-476, July.
    8. Rada, Nicholas & Helfand, Steven & Magalhães, Marcelo, 2019. "Agricultural productivity growth in Brazil: Large and small farms excel," Food Policy, Elsevier, vol. 84(C), pages 176-185.
    9. Zhong, Shen & Li, Junwei & Chen, Xi & Wen, Hongmei, 2022. "A multi-hierarchy meta-frontier approach for measuring green total factor productivity: An application of pig breeding in China," Socio-Economic Planning Sciences, Elsevier, vol. 81(C).
    10. Key, Nigel & McBride, William D., 2008. "Do Production Contracts Raise Farm Productivity? An Instrumental Variables Approach," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(2), pages 176-187, October.
    11. MacDonald, James M., 2011. "Why Are Farms Getting Larger? The Case Of The U.S," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115361, German Association of Agricultural Economists (GEWISOLA).
    12. Zdeňka Náglová & Marie Šimpachová Pechrová, 2019. "Subsidies and technical efficiency of Czech food processing industry," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(4), pages 151-159.
    13. Cechura, Lukas & Hockmann, Heinrich, 2010. "Sources of economical growth in the Czech food processing," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 19(2), pages 169-182.
    14. David Hadley & Euan Fleming & Renato Villano, 2013. "Is Input Mix Inefficiency Neglected in Agriculture? A Case Study of Pig-based Farming Systems in England and Wales," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 505-515, June.
    15. Schulz, Lee L. & Hadrich, Joleen C., 2014. "Feeding Practices and Input Cost Performance in U.S. Hog Operations: The Case of Split-Sex and Phase Feeding," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169983, Agricultural and Applied Economics Association.
    16. Subal Kumbhakar & Kai Sun, 2012. "Estimation of TFP growth: a semiparametric smooth coefficient approach," Empirical Economics, Springer, vol. 43(1), pages 1-24, August.
    17. McBride, William D. & Key, Nigel, "undated". "U.S. Hog Production From 1992 to 2009: Technology, Restructuring, and Productivity Growth," Economic Research Report 262217, United States Department of Agriculture, Economic Research Service.
    18. Hasan Dudu & Emanuele Ferrari, 2018. "Estimation and Modelling Impacts of Pillar 2 Measures on the Agricultural Sector: Workshop proceedings," JRC Research Reports JRC111756, Joint Research Centre.
    19. Duvaleix-Treguer, Sabine & Gaigne, Carl, 2012. "Cost Economies in Hog Production: Feed prices matter," Working Papers 125261, Structure and Performance of Agriculture and Agri-products Industry (SPAA).
    20. Diejun Huang & Qiuzhuo Ma & Liangyu Feng & Xiaowei Wen & Hua Li, 2018. "Applying Data Mining to China’s Swine Farming Industry: A Compromise Perspective of Economic, Environmental and Overall Performances," Sustainability, MDPI, vol. 10(7), pages 1-26, July.
    21. Yeager, Elizabeth A. & Langemeier, Michael R., 2011. "Productivity Divergence across Kansas Farms," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(2), pages 282-292, September.

    More about this item

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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