 |
| CLICK HERE TO VIEW CURRENT ISSUE |
|
 |
|
USDA REPORTS THE GROWTH RATE OF GLOBAL AGRICULTURAL PRODUCTION IS SLOWING
Feb. 12, 2024
Source: USDA news release
In the last decade, world agricultural output grew at an average annual rate of 1.94 percent per year, far slower than the 2.74-percent output growth rate over the previous decade and below the average annual rate of 2.3 percent over the last six decades (1961-2021).
The slowdown in agricultural growth was primarily tied to a slowing rate of growth in agricultural total factor productivity (TFP), which fell to 1.14 percent per year in 2011-2021 (compared with 1.93 percent per year the previous decade). TFP measures the amount of agricultural output produced from the aggregated inputs used in the production process (land, labor, capital, and material resources).
The figure shows four major sources of overall growth: bringing more land into production (holding yields fixed); extending irrigation to land; intensifying the use of capital, labor, and material inputs per unit of land; and improving TFP, which reflects the rate of technological and efficiency improvements of inputs.
|
|
|
|
|
