Total factor productivity. What is that?

 

“Agricultural productivity growth, measured as total factor productivity increases either by generating more output with the same or fewer resources and inputs, or by maintaining the same output while using fewer resources and inputs," said Tom Thompson of Virginia Tech University.  He added this index provides measurement of world agricultural production, via sustainable methods.  TFP is the indicator as part of Virginia Tech's annual Global Agricultural Productivity Initiative report, the source of data used for this study, USDA's Economic Research Service.

 

“Each year, the Gap report uses the global agricultural productivity data set curated by Doctor Keith Fugly and his team at USDA ERS to report on trends in global agricultural productivity.”

 

For the 2024 GAP report.

 

“The theme for this year's report is powering Pro Activity.  In this report, we will summarize the most recent agricultural productivity trends globally," Thompson said.  "We'll also emphasize the importance of bridging the gap between innovation and widespread adoption.

 

“TFP rises when producers use innovative agricultural technologies and knowledge. Because TFP incorporates a wide range of inputs and outputs in its calculation, it's the broadest available measure of technical efficiency and productivity over time."

 

Such changes in TFP grow. Have been observed since 2010, designed to measure future growth necessary to sustainably fulfill world farm and food production by the year 2050. For this year's GAP report measuring TFP growth for the period of 2013-2022.

 

“The GAP index target, which was a projected rate of 1.73% annual TFP growth during 2010 to 20," Thompson noted.  "The 50 was based on the assumption that agricultural outputs would need to double between 2010 and 2050 to support a projected population of 10 billion people. However, at only 0.74% the global average annual TFP growth during 2013-2022 fell well below the 1.7. 3% annual growth target.” 

 

Thompson added this means an adjustment of the gap target of 2% average. Annual growth between now and 2050 to achieve sustainable Ag production to meet all global needs by the end of the period.

 

"The gap between actual and needed TFP growth is becoming increasingly difficult to close,” he said.

 

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