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PR - Productivity And Farm Size

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  • Clark, Paul
  • Langemeier, Michael

Abstract

The objective of this paper was to examine productivity differences among individual farms. The Malmquist index approach was used to estimate productivity for each farm and to decompose productivity change into technical change and efficiency change. The relationship between productivity and farm size was explored. In addition, the relationships between each productivity component and outputs, and each productivity component and inputs were explored. For the sample of Kansas farms used in this study, average annual productivity change over the 20-year period for the sample of farms was 2.16%. Technical change averaged 1.54% per year and efficiency change averaged 0.61% per year. Productivity was significant and positively related to farm size and feed grain production, and significant and negatively related to labor use. The largest farms, those with real gross farm income greater than $500,000, had the largest annual average productivity change at 3.20%.

Suggested Citation

  • Clark, Paul & Langemeier, Michael, 2007. "PR - Productivity And Farm Size," 16th Congress, Cork, Ireland, July 15-20, 2007 345365, International Farm Management Association.
    • Handle: RePEc:ags:ifma07:345365
    DOI: 10.22004/ag.econ.345365
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    References listed on IDEAS

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    1. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    2. V. Eldon Ball & Charles Hallahan & Richard Nehring, 2004. "Convergence of Productivity: An Analysis of the Catch-up Hypothesis within a Panel of States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1315-1321.
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