Farm Efficiency and Productivity Growth: The Effect of Commodity Prices

Elizabeth Canales, Jason S Bergtold, Allen Featherstone
2021 Journal of applied farm economics  
Crop prices can affect farm productivity through input-output decisions. This study assesses the relationship between crop prices and productivity changes among a sample of Kansas farms. The changes in total factor productivity are evaluated using a nonparametric approach with a Malmquist productivity index and potential drivers of technical efficiency and productivity change are analyzed. Farms with higher leverage and greater diversification are likely to be more efficient and experience
more » ... ctivity change. Lower productivity occurred during years with higher crop prices, suggesting that innovation is more likely to occur when margins are tight.
doi:10.7771/2331-9151.1053 fatcat:fucp24zjgvdrxiw6k6om4xfoa4