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Has growth in productivity in Australian broadacre agriculture slowed?

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  • Sheng, Yu
  • Mullen, John D.
  • Zhao, Shiji

Abstract

Agricultural productivity growth has been strong relative to other sectors in the Australian economy, and relative to the agricultural sectors of other developed countries. However, as commonly observed among other developed economies, growth in productivity in the broadacre sector of Australian agriculture seems to have slowed in the past decade. This paper uses the adjusted cumulative sum square (CUSQ) index to examine the trend stability of total factor productivity in Australian broadacre agriculture over the period 1952-53 to 2006-07. The results show that a significant slowdown occurred around the mid-1990s. Further analysis shows that the slowdown in productivity growth is driven by a longterm decline in public R&D investment in addition to poor seasonal conditions in the past decade.

Suggested Citation

  • Sheng, Yu & Mullen, John D. & Zhao, Shiji, 2010. "Has growth in productivity in Australian broadacre agriculture slowed?," 2010 Conference (54th), February 10-12, 2010, Adelaide, Australia 59266, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare10:59266
    DOI: 10.22004/ag.econ.59266
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    Cited by:

    1. Sheng, Yu & Xu, Xinpeng, 2019. "The productivity impact of climate change: Evidence from Australia's Millennium drought," Economic Modelling, Elsevier, vol. 76(C), pages 182-191.
    2. Williams, John & McSweeney, Peter & Salmon, Robert, 2014. "Australian Farm Investment: Domestic and Overseas Issues," Papers 234408, University of Melbourne, Melbourne School of Land and Environment.
    3. Mullen, John & Keogh, Mick, 2013. "The Future Productivity and Competitiveness Challenge for Australian Agriculture," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152170, Australian Agricultural and Resource Economics Society.
    4. Mullen, John D., 2012. "Public investment in agricultural research and development in Australia remains a sensible policy option," AFBM Journal, Australasian Farm Business Management Network, vol. 8(2), pages 1-11, April.
    5. Hughes, Neal & Lawson, Kenton & Davidson, Alistair & Jackson, Tom & Sheng, Yu, 2011. "Productivity pathways: climate-adjusted production frontiers for the Australian broadacre cropping industry," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100563, Australian Agricultural and Resource Economics Society.
    6. Islam, Nazrul & Xayavong, Vilaphonh & Kingwell, Ross, 2014. "Broadacre farm productivity and profitability in south-western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(2), April.
    7. Sheng, Yu & Gray, Emily M. & Mullen, John D., 2011. "Public investment in R&D and extension and productivity in Australian broadacre agriculture," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100712, Australian Agricultural and Resource Economics Society.
    8. Daowei Sun & Paul Hyland & Ockie Bosch, 2015. "A Systemic View of Innovation Adoption in the Australian Beef Industry," Systems Research and Behavioral Science, Wiley Blackwell, vol. 32(6), pages 646-657, November.
    9. Robert G. Chambers & Simone Pieralli & Yu Sheng, 2020. "The Millennium Droughts and Australian Agricultural Productivity Performance: A Nonparametric Analysis," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1383-1403, October.

    More about this item

    Keywords

    Crop Production/Industries; Farm Management;

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