Agricultural Productivity and the Role of Research David Oppedahl - - PowerPoint PPT Presentation

▶

Mar 11, 2023 427 likes •561 views

Agricultural Productivity and the Role of Research David Oppedahl September 24, 2007 Business Economist Federal Reserve Bank 312-322-6122 of Chicago david.oppedahl@chi.frb.org Federal Reserve System 7th District Agriculture Products (as %

SLIDE 1

Agricultural Productivity and the Role of Research

September 24, 2007 Federal Reserve Bank

f Chicago

David Oppedahl Business Economist 312-322-6122 david.oppedahl@chi.frb.org

SLIDE 2

Federal Reserve System

SLIDE 3

7th District Agriculture Products (as % of U.S. total, 2006)

0% 10% 20% 30% 40% 50% 60% Grain Corn Soybeans Hogs Eggs Milk Production Cattle

SLIDE 4

SLIDE 5

District and U.S. output shares from farming

1 2 3 4

1 9 7 7 1 9 7 9 1 9 8 1 1 9 8 3 1 9 8 5 1 9 8 7 1 9 8 9 1 9 9 1 1 9 9 3 1 9 9 5 1 9 9 7 1 9 9 9 2 1 2 3 2 5

Percent

7th District U.S.

SLIDE 6

SLIDE 7

7th District Crop Yield Indexes (1964=100)

100 150 200 250 1964 1970 1976 1982 1988 1994 2000 2006

Corn Soybeans

SLIDE 8

U.S. agricultural output, inputs, and total factor productivity (TFP)

(1948=100)

50 100 150 200 250 300 1948 1956 1964 1972 1980 1988 1996 2004

Inputs Output TFP

SLIDE 9

Shares of growth in agricultural labor productivity

1948-1980 1981-2004 Increase in inputs per worker 74 33 Improvements in labor quality 3 1 Growth in TFP 24 66 Total 100 100

SLIDE 10

Ag research is vital

“Policies that affect the longrun rate of

productivity growth are more important for the longrun performance of the agricultural sector. These include macro-economic policies that encourage new investment and policies that encourage agricultural research and innovation.”

“There is a consensus that the payoff from the

government’s investment in agricultural research has been high.” Fuglie, MacDonald, and Ball, September 2007 Fuglie and Heisey, September 2007

SLIDE 11

Points to Remember

U.S. agriculture produces over 2.5 times

more with less than 6 decades ago

Research promotes the long-term health of

agriculture (via productivity)

High returns to research in most commodities
Significant “spillovers” across state and

national boundaries

Private ag research generates social returns

SLIDE 12

For more information check: www.chicagofed.org

Data Sources:

“Productivity Growth in U.S. Agriculture,” (Economic Brief Number 9) Keith O. Fuglie, James M. MacDonald, and Eldon Ball, Economic Research Service, USDA, September 2007 “Economic Returns to Public Agricultural Research,” (Economic Brief Number 10), Keith O. Fuglie and Paul W. Heisey, Economic Research Service, USDA, September 2007 National Agricultural Statistics Service, USDA Bureau of Economic Analysis, Dept. of Commerce