Why Agriculture Productivity Falls

Why Agriculture Productivity Falls: The Political Economy of Agrarian Transition in Developing Countries offers a new explanation for the decline in agricultural productivity in developing countries. Transcending the conventional approaches to understanding productivity using agricultural inputs and factors of production, this work brings in the role of formal and informal institutions that govern transactions, property rights, and accumulation. This more robust methodology leads to a comprehensive, well-balanced lens to perceive agrarian transition in developing countries. It argues that the existing process of accumulation has resulted in nonsustainable agriculture because of market failures—the result of asymmetries of power, diseconomies of scale, and unstable property rights. The book covers the historical shifts in land relations, productivity, and class relations that have led to present-day challenges in sustainability. The result is arrested productivity growth. Agrarian transition should be understood in the context of the wider economic development in society, including how political settlement and primitive accumulation inhibited the kind of property rights that encourage growth. Why Agriculture Productivity Falls is a much-needed corrective to the traditional understanding, because before we can increase productivity, we must understand the root causes of those challenges.

U.S. agricultural output more than doubled between 1948 and 2011, with growth averaging 1.49 percent per year. With little growth in total measured use of agricultural inputs, the extraordinary performance of the U.S. farm sector was driven mainly by increases in total factor productivity (TFP--measured as output per unit of aggregate input). Over the last six decades, the mix of agricultural inputs used shifted significantly, with increased use of intermediate goods (e.g., fertilizer and pesticides) and less use of labor and land. The output mix changed as well, with crop production growing faster than livestock production. Based on econometric analysis of updated (1948-2011) TFP data, this study finds no statistical evidence that longrun U.S. agricultural productivity has slowed over time. Model-based projections show that in the future, slow growth in research and development investments may have only minor effects on TFP growth over the next 10 years but will slow TFP growth much more over the long term.

The inverse relationship between farm size and productivity is accepted as a "stylized fact" of agriculture in developing countries. This study uses Egyptian fieldwork data to examine factors creating this relationship, and the impact of economic and technological change on the relationship.

Agricultural development is crucial in developing countries, and particularly in the poorest countries where it accounts for large shares of employment and income and whose poverty is due simply to having a large share of the workforce in low-productivity agriculture. Raising productivity in agriculture is critically important for development, as is smoothly moving workers out of agriculture into more productive employment in other sectors. Raising agricultural productivity helps both to raise incomes and to reduce poverty-both by raising the incomes of poor people working in agriculture and by lowering the prices of foods that make up a disproportionately large share of the expenditures of poor people. In small and open economies, the in-crease in profitability of agriculture following improvements in productivity might tend to retain or even attract workers into agriculture. By contrast, at a global level, or at national level when policy focusses on self-sufficiency, improvements in agricultural productivity will free up labor for employment in other sectors. Incomes are generally much higher in non-agricultural work in developing countries-more than double those in agriculture after careful adjustment for key differences. This raises the possibility of a double dividend from structural transformation as workers move into higher-productivity activities. A key question for development policy is whether it is enough to simply evaluate the gains from higher productivity within agriculture, or whether potential benefits from structural change be included as well. This paper examines the arguments on this question. It concludes that these dividends may be substantial-but whether they are or not depends on the source of the initial differences in productivity and on the direction of movement when agricultural productivity rises. If it results from policy barriers such as restrictions on the transfer of farmland or requirements for residence permits in urban areas, there are likely to be substantial welfare gains when labor moves out of agriculture. They may also be substantial if urban wages are artificially high and attract substantial numbers of job-waiters into unemployment. However, these gains may be illusory if the income gaps arise primarily from differences in skills or from reluctance to move created by asset fixity.

This book deals with the important topic of policies for sustainable agriculture, since food insecurity is a growing concern for policy makers and will affect the quality of life and well-being of generations to come. The authors provide a theoretical background to the concept of sustainable agriculture including its recent developments; monitor the current state of sustainability in agriculture in different regions of the world; and evaluate current agricultural policies to propose new solutions. They show practical ways of sustainability measurement that could be applied to different regions. The book takes into account sustainability indicators based on economic, social and environmental aspects and discusses the trade-offs between these three dimensions. It also answers the question of whether current agricultural policies contribute to balancing between the goals of agriculture---that of not just providing food but of contributing to the greater good---and how policies differ and have evolved across the world. Finally, it puts together the best practices of sustainability for the use of policymakers. The book pays particular attention to least developed countries where hunger and malnutrition are high, but where productivity should not come at the expense of environmental and social goals. This book is of use to a wide readership of policy makers, professionals and academics in the social and environmental sciences interested in the improvement of human life through sustainable agricultural policy implementation.

This book challenges the assumption that the major benefits of investment in rural education accrue to traditional agricultural activities, such as staples production.

'Action is needed to fight poverty by sustaining the environment and the use of natural resources. Land Quality, Agricultural Productivity, and Food Security explores a range of factors driving food security. The book offers an assessment to link quality of the available land resources with productivity of land and the ability to ensure food security. It offers a mixture of broad-scale assessments across the globe, with detailed case studies, deepening our understanding of economics and decision-making mechanisms. It is recommended to researchers, as well as actors in the private and public domain, who are keen to improve their understanding of the appropriate actions that ensure food security in the decade to come.' - Floor Brouwer, Agricultural Economics Research Institute (LEI), The Hague, The Netherlands Land quality and land degradation affect agricultural productivity and food security, but quantifying these relationships has been difficult. Data are extremely limited and outcomes are sensitive to the choices that farmers make. The contributors to this book - including soil scientists, geographers, and economists - analyse data on soils, climate, land cover, agricultural inputs and outputs, and a variety of socio-economic factors to provide new insights into three key issues: * the extent to which differences in land quality generate differences in agricultural productivity across countries * how farmers' responses to differences or changes in land quality are influenced by economic, environmental, and institutional factors, and * whether land degradation over time threatens productivity growth and food security at local, regional, and global levels.