IDEAS home Printed from https://ideas.repec.org/p/ags/aare11/100565.html
   My bibliography  Save this paper

Broadacre Farm Productivity And Profitability In South Western Australia

Author

Listed:
  • Islam, Nazrul
  • Xayavong, Vilaphonh
  • Kingwell, Ross S.

Abstract

This paper examines broadacre farm performance in south-western Australia. This region has experienced pronounced climate variability and volatile commodity prices over the last decade or so. Relationships between productivity and profitability are explored using panel data from 50 farms in the study region. The data are analysed using non-parametric methods. Components of farm productivity and profitability are measured over the period 1998 to 2008. Economies of scale and scope are shown often to be positive contributors to productivity and profitability. However, the main finding is that technical change, much more so than technical efficiency, has supplied over 68 percent of the improvement in total factor productivity for farms in the different climatic zones of the region from 1998 to 2008. In addition, growth in total factor productivity is the main contributor to farm profitability. By implication, technical change, often accompanied by scale and mix efficiencies, is the main driver of farm profitability. These findings indicate a vital role for innovation and R,D&E to deliver technologies and practices that bolster farm profitability, as well as a continuing role for scale and scope economies. The products and knowledge that come from innovation and R,D&E are the springboard for technical change. Through technical change and scale and scope efficiencies farmers in this study have achieved higher profits.

Suggested Citation

  • Islam, Nazrul & Xayavong, Vilaphonh & Kingwell, Ross S., 2011. "Broadacre Farm Productivity And Profitability In South Western Australia," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100565, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare11:100565
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/100565
    Download Restriction: no

    References listed on IDEAS

    as
    1. Christopher J. O'Donnell, 2010. "Measuring and decomposing agricultural productivity and profitability change ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 527-560, October.
    2. Ilke Van Beveren, 2012. "Total Factor Productivity Estimation: A Practical Review," Journal of Economic Surveys, Wiley Blackwell, vol. 26(1), pages 98-128, February.
    3. John Quiggin & David Adamson & Sarah Chambers & Peggy Schrobback, 2010. "Climate Change, Uncertainty, and Adaptation: The Case of Irrigated Agriculture in the Murray-Darling Basin in Australia," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(s1), pages 531-554, December.
    4. Johannes Van Biesebroeck, 2007. "ROBUSTNESS OF PRODUCTIVITY ESTIMATES -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 55(3), pages 529-569, September.
    5. Christopher O’Donnell & D. Rao & George Battese, 2008. "Metafrontier frameworks for the study of firm-level efficiencies and technology ratios," Empirical Economics, Springer, vol. 34(2), pages 231-255, March.
    6. 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.
    7. C.J. O'Donnell, 2010. "DPIN Version 1.0: A Program for Decomposing Productivity Index Numbers," CEPA Working Papers Series WP012010, School of Economics, University of Queensland, Australia.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Productivity; Profitability; Technical change; Farm businesses; Farm Management; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare11:100565. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaresea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.