Volume 71, Issue 1 e12718
ORIGINAL ARTICLE

Inputs, Outputs, and Total Factor Productivity in the US Farm Sector: A New State-Level Analysis (1960–2015)

Sun Ling Wang

Corresponding Author

Sun Ling Wang

USDA Economic Research Service

Correspondence to: Sun Ling Wang, USDA Economic Research Service, Washington, DC, USA ([email protected])

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Richard Nehring

Richard Nehring

USDA Economic Research Service

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Roberto Mosheim

Roberto Mosheim

USDA Economic Research Service

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Adauto Brasilino Rocha Jr

Adauto Brasilino Rocha Jr

University of Missouri

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First published: 06 January 2025

This research was supported by the US Department of Agriculture. The findings and conclusion in this research paper are those of the authors and should not be construed to represent any official USDA or US Government determination or policy.

Abstract

We introduce new methods and data sources to generate comprehensive state-level estimates of inputs, outputs, and total factor productivity for each of the 48 contiguous US states from 1960 to 2015. Results show that total factor productivity is the primary driver of farm output growth during the study period. However, the average annual productivity growth rates exhibit significant variation among states, ranging from 0.23% (New Mexico) to 1.95% (Ohio). While the average annual productivity growth rate has decelerated for most states over the past two decades, our test results do not indicate a consistent productivity slowdown across 10 production regions.

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