American farm families feed, fuel, and clothe America. A new survey from the American Sugar...
Technological developments in agriculture have enabled continued output growth without requiring much additional inputs. Innovations in animal and crop genetics, chemicals, equipment, and farm organization have made it possible for total agricultural output to nearly triple between 1948 and 2021.
During that period, the amount of inputs used in farming declined slightly over time, meaning that the growth in agricultural output over the long term has depended on increases in total factor productivity (TFP). TFP measures the amount of agricultural output produced from the combined inputs (land, labor, capital, and intermediate inputs) employed in farm production. Therefore, growth in TFP indicates positive changes in the efficiency with which inputs are transformed into outputs. It can also be seen as an indicator of technical change.
In the short term, total output growth and estimated TFP growth can be affected by random events, such as adverse weather. In the most recent TFP calculation period spanning 2020-21, agricultural output grew, which was due entirely to TFP growth, even as the amount of inputs used in farming declined.
EDITOR’S TAKE:
Many people have a very antiquated view of agriculture, one based on stereotypes of the past. There used to be a saying, “If you can’t do anything else, go into farming.” Not anymore. Farmers today are highly educated. They are well versed in several disciplines. And, they have an affinity for technology. Everything from drones, high-tech tractors, combines and planters to sophisticated data monitors and software, advanced genetics, etc. Because they are so invested in and amenable to technology, farmers/ranchers can produce more with less, enough to feed and clothe every American, with plenty left for export. This, in turn, allows them to enhance their financial well-being. Be sure to let farmers/ranchers know you value their business and have the trucks they need. One more reason to put your inventory on AgTruckTrader.com®….
