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Productivity Divergence Across Kansas Farms

Author

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  • Yeager, Elizabeth A.
  • Langemeier, Michael R.

Abstract

This study used 30 years of continuous data for 135 farms in Kansas to explore changes in productivity using Malmquist productivity indices. The indices were used to determine whether there was productivity convergence or divergence in Kansas farms. The results showed that there was significant divergence among the farms and not a tendency for farms to catch-up to the same levels of productivity as the top farms in the sample. The average annual productivity growth over the sample period, 1979-2008, was 0.50 percent. The top farms based on MPI were larger in terms of value of farm production, crop farm income and livestock farm income and received a larger percentage of their income from oilseeds, feed grains, and swine than the other farms on average and relatively less of their income from small grains.

Suggested Citation

  • Yeager, Elizabeth A. & Langemeier, Michael R., 2010. "Productivity Divergence Across Kansas Farms," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61174, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea10:61174
    DOI: 10.22004/ag.econ.61174
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    File URL: https://ageconsearch.umn.edu/record/61174/files/10613%20AAEA%20Poster.pdf
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    2. Sawadgo, Wendiam P. M. & Plastina, Alejandro, 2020. "Drivers of Profit Inefficiency in Iowa Crop Production," ISU General Staff Papers 202001010800001056, Iowa State University, Department of Economics.
    3. Amin W. Mugera & Michael R. Langemeier & Andrew Ojede, 2016. "Contributions of Productivity and Relative Price Changes to Farm-level Profitability Change," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(4), pages 1210-1229.
    4. Purdy, Rachel & Langemeier, Michael, 2020. "Cost Effifficiency of International Corn and Soybean Production," Journal of Applied Farm Economics, Purdue University, vol. 3(2), May.
    5. K Hervé Dakpo & Yann Desjeux & Philippe Jeanneaux & Laure Latruffe, 2017. "Productivity, technical efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," Working Papers SMART 17-07, INRAE UMR SMART.
    6. Tamirat, Aderajew AS & Trujillo-Barrera, Andres A. & Pennings, Joost M. E., "undated". "Do Profit Rates Converge? Evidence on the Persistence of Farm Profit in the Long-run," 2018 Annual Meeting, August 5-7, Washington, D.C. 273791, Agricultural and Applied Economics Association.
    7. Dakpo, K Hervé & Desjeux, Yann & Jeanneaux, Philippe & Latruffe, Laure, 2016. "Productivity, efficiency and technological change in French agriculture during 2002-2014: A Färe-Primont index decomposition," 149th Seminar, October 27-28, 2016, Rennes, France 244793, European Association of Agricultural Economists.

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